No More Paper Tax Refund Checks

Did you miss reading Executive Order 14247 signed on March 25, 2025? If you did, you’re not alone, but its provisions may affect you. The order requires a transition to fully electronic federal payments to the extent permitted by law. Accordingly, the IRS and Department of Treasury recently announced that paper tax refund checks for individual taxpayers will be phased out beginning on September 30, 2025, as required by the order.

The change is designed to protect taxpayers, speed up refunds, and cut costs. 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. Electronic refunds give taxpayers faster access to refunds with payments usually issued in less than 21 days. Refunds sent by mail can take six weeks or longer to process. Electronic payments are more efficient and cost less than paper payments.

The IRS plans on publishing detailed guidance on electronic tax refunds for 2025 individual income tax returns before the 2026 filing season begins at the end of January 2026. In the meantime, taxpayers should continue using existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to December 31, 2025. Here are some steps the IRS recommends individual taxpayers take until detailed guidance has been issued:

• Filing stays the same: Taxpayers should file their returns as they normally would using existing filing options.
• Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.
• Help for those without access to bank accounts: Options such as prepaid debit cards, digital wallets, or limited exceptions will be available.
• Act now: Taxpayers should make sure they know their banking information or consider opening a free or low-cost account. Visit FDIC:GetBanked and MyCreditUnion.gov for account options.

At R&A CPAs, we keep an eye on policy and tax developments that will affect our clients. As soon as the IRS issues additional guidance regarding this issue, we will let you know. Please feel free to contact us if you have other questions too. We would love to hear from you.