09/22/2025
The End of Paper Checks from the IRS
A major change is coming: beginning September 30, 2025, the U.S. Department of the Treasury will phase out paper checks for most federal payments, including IRS tax refunds. This move is part of a broader modernization effort to make government payments faster, safer, and less expensive.
For taxpayers who still rely on paper refunds or mail checks for tax payments, the switch will mean new habits — and possibly new banking arrangements. Here’s everything you need to know to prepare.
Why the IRS Is Moving Away from Checks
Paper checks may feel familiar, but they create serious challenges:
Delays: Checks take days (or weeks) to reach taxpayers. Electronic payments clear within hours.
Fraud risks: Lost, stolen, or altered checks are far more common than intercepted direct deposits.
High cost: Printing, mailing, and processing checks costs the government billions each year.
By eliminating paper checks, Treasury estimates it will significantly cut down on fraud, speed up the refund process, and save taxpayers money in administrative costs.
How This Impacts Taxpayers
The most noticeable change is with IRS refunds. If you normally receive a paper check after filing your tax return, you will now need to provide electronic payment details. Otherwise, your refund may be delayed.
Additionally, payments to the IRS — such as when you owe taxes — will also shift toward electronic-only. That means mailing a personal check to the IRS will soon be discouraged or prohibited unless you qualify for a narrow exemption.
Who Is Most Affected by the Change
While many Americans already receive tax refunds by direct deposit, millions still rely on paper checks. The transition will be most challenging for:
Seniors who may be less comfortable with online banking.
The unbanked, or those without checking or savings accounts.
Immigrants and lower-income households who may rely on check-cashing services.
Consumer advocates are urging Treasury to provide extra support for these groups to ensure no one is left behind.
Will There Be Exceptions?
Yes, but only in limited circumstances. Treasury has confirmed that exemptions and accommodations will be available for people facing significant barriers, such as severe disabilities, geographic isolation, or other special situations.
That said, the default expectation is that all taxpayers and recipients of federal payments will switch to electronic methods. Exceptions will likely require documentation and approval, so relying on them is not a safe long-term plan.
How to Prepare Now: Action Checklist
Here’s what you should do well before September 2025:
1. Update Your IRS Banking Information
When you file your next tax return, make sure to enter your routing and account numbers so your refund goes directly to your bank. If you’ve moved or changed banks, log in to your IRS online account to update your information.
2. Consider Alternatives if You’re Unbanked
If you don’t have a bank account, explore options like the Direct Express prepaid debit card or basic checking accounts at community banks and credit unions. These low-cost accounts are designed for people who need simple access to federal payments.
3. Use IRS Direct Pay or EFTPS for Payments
Instead of mailing a paper check to the IRS, switch to electronic methods such as IRS Direct Pay (for individuals) or the Electronic Federal Tax Payment System (EFTPS) for businesses. Both are free, secure, and process instantly.
4. Create an IRS Online Account
Setting up an account on IRS.gov allows you to monitor refunds, update payment information, and manage your tax history all in one place. It also helps ensure you’re ready for future electronic-only processes.
Common Questions About the Change
Will I be forced onto a government debit card?
No. Direct deposit into your bank account will remain the fastest and most common option. Debit cards or digital wallets may be offered as alternatives for people without accounts.
What if I refuse to provide banking details?
If you don’t provide electronic payment information, your refund could be delayed. Treasury will no longer default to mailing a paper check.
Could this delay refunds in 2026?
Yes, if taxpayers aren’t prepared. To avoid problems, provide your bank details when filing your 2025 return and ensure they’re accurate.
The Bottom Line
The end of paper checks is coming fast. Starting September 30, 2025, the IRS and other federal agencies will stop mailing most paper checks and move to electronic payments by default.
If you want to avoid refund delays, now is the time to:
Set up direct deposit.
Explore prepaid or digital payment alternatives if unbanked.
Get comfortable with IRS online tools.
By preparing early, you’ll make the transition smooth — and you’ll receive your money faster and more securely than ever before.
