IRS Zero Paper Initiative: The End of Paper Checks
The IRS has officially confirmed that paper tax refund checks for individual taxpayers will begin to be phased out as of September 30, 2025, in compliance with Executive Order 14247. Here’s a breakdown of what the IRS is saying and what you should do now to stay ahead of the changes.
What the New Guidance Tells Us
- Starting September 30, 2025, paper checks for individual tax refunds will be discontinued to the extent permitted by law.
- The goal:
- Enhance security (paper checks are much more likely to be lost, stolen or delayed), and
- Speed up refunds (electronic refunds can be issued in under 21 days if there are no issues, versus weeks or more if mailed)
- For now, individuals should continue filing taxes as normal, using the existing forms and procedures until further updates are published.
- The IRS states that for taxpayers who don’t have a traditional bank account, there will be “alternative options” such as prepaid debit cards, digital wallets, or limited exceptions.
- Prior to the 2026 filing season, the IRS will issue more detailed guidance for 2025 tax returns.
What You Should Do Now
If you’ve always received your refund or made payments by mailed check, don’t worry. There are easy steps to switch to direct deposit or explore other options.
- Switch to (or confirm) direct deposit and withdrawal
- If you haven’t already, arrange for your refund to be sent via direct deposits or your tax payments to be made via ACH withdrawal. If you’ve changed banks recently, make sure the account and routing numbers are current.
- Plan ahead by setting up an IRS online account
- Create an IRS online account to make and maintain a record of your tax filings and payments: https://www.irs.gov/payments/online-account-for-individuals
Final Word
The shift to electronic refunds is intended to be more secure, faster, and more efficient for both taxpayers and the IRS. But like any large change, there will be transition issues. By acting now, you can avoid delays and ensure your refund arrives smoothly.
Need help switching to direct deposit or setting up your IRS account? Contact us today – we’ll walk you through it.
Claire Chow – Tax Partner
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