IRS TO PHASE OUT PAPER TAX REFUND CHECKS

. This marks the first step of the broader transition to electronic payments.

The change is designed to

·     Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.

·     Speed up refunds: Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit and there are no issues with the return, whereas nonelectronic payments may take 6 weeks or longer for refunds sent by mail.

·     Cut costs: Electronic payments are more efficient and cost less than paper.

What this means for individual taxpayers

·     Filing stays the same: Taxpayers should continue to file their returns as they normally would, using one of the existing filing options.

·     Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.

Most individual taxpayers already receive their refunds by direct deposit into their bank accounts. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.