If you’re still getting your tax refund by mail, you might want to pay attention—big changes are coming. The IRS has started phasing out paper refund checks, part of a larger federal move toward electronic payments.

Starting September 30, 2025, the IRS began phasing out paper refund checks for most individual taxpayers, to the extent permitted by law, and shifting refunds toward direct deposit and other secure electronic delivery methods. Not only does this policy support more electronic payments to the IRS over time, but it also allows taxpayers to use currently accepted payment methods unless they receive updated IRS instructions.

It’s important to know what this means for your next return, whether you qualify for exceptions, and what to do if you don’t have a regular bank account. The details aren’t just red tape—they’ll help you avoid refund headaches, missed payments, or confusion come filing time.

At My Personal Tax CPA, we help taxpayers stay ahead of IRS changes so filing season feels a lot less overwhelming. Whether you’re unsure how this paper check phaseout affects your refund, need help choosing the right payment option, or want to avoid delays and costly mistakes, our team is here to guide you every step of the way.

Are IRS Paper Checks Ending in 2026?

The IRS is moving most tax refunds from paper checks to electronic payments under a federal directive. You’ll still file your return the same way, but the delivery of refunds and some payments is changing.

Phase-Out Timeline and Deadline

The IRS announced it will begin phasing out paper refund checks for individual taxpayers starting September 30, 2025. This is part of a Treasury modernization push, and it covers refunds issued after that date, as detailed in the official IRS announcement on phasing out paper refund checks.

Don’t expect paper checks to vanish overnight. The agency will gradually reduce mailed refunds while expanding electronic options. Some exceptions—like prepaid debit cards or other electronic methods—will stick around for folks without bank accounts. For now, keep using the same forms and procedures.

Executive Order 14247 and Its Implications

Executive Order 14247 directs federal agencies to ramp up electronic payments and cut back on paper checks. The IRS is following this order as much as the law allows, so paper checks will mostly disappear in routine refund situations.

This is part of Treasury’s broader effort to modernize payment systems. Electronic payments are simply less vulnerable—paper checks get lost, stolen, or sent to the wrong address way more often.

There’s also a speed advantage. Filing electronically and using direct deposit usually gets your refund to you in under 21 days, assuming there are no hiccups. Paper checks? Those can drag on for six weeks or even longer.

Plus, it’s cheaper. Printing, mailing, and tracking checks is a drain on resources compared to digital transfers.

Affected Refunds and Payments

This phase-out mainly impacts individual income tax refunds. If you’re used to receiving a paper check, you’ll need to provide bank account information or choose another approved electronic option.

Most people already use direct deposit. In the 2025 filing season, the IRS sent out over 93 million refunds, and about 93% were electronic, according to CNBC’s coverage of the government’s move away from paper checks.

Executive Order 14247 also addresses payments to the IRS, but you should continue using your current payment methods until the agency provides updated instructions. Not every paper-based option is gone, but the scope is narrowing.

If you don’t have a bank account, you might qualify for alternatives like prepaid debit cards or digital wallets.

2026 Tax Filing Season Transition

For the 2026 tax filing season (covering 2025 returns), the shift away from paper refund checks is already in effect. The IRS began phasing out paper checks on September 30, 2025, so most taxpayers should now expect refunds to be issued electronically—either through direct deposit or another approved digital method.

Filing your return hasn’t changed—you can still file electronically or by mail—but how you receive your refund has. If you don’t provide direct deposit information, the IRS may hold your refund and send a notice asking you to update your payment details or choose an alternative option. In some cases, a paper check may still be issued, but it’s no longer the default.

Before filing, take a few minutes to confirm your routing and account numbers. Errors here are one of the most common causes of refund delays. If you don’t want to use a traditional bank account, this is the time to set up an alternative—such as a prepaid debit card or a low-cost account—so you’re not scrambling once your return is processed.

Why the IRS Is Phasing Out Paper Checks

The IRS is moving to electronic refunds to cut fraud, speed up payments, and save money. It’s all part of a bigger federal push to modernize how money moves in and out of the government.

Enhanced Security and Fraud Prevention

Paper checks are risky. The IRS says they’re more than 16 times as likely to be lost, stolen, altered, or returned undeliverable than electronic payments—a big reason for the phase out starting Sept. 30, 2025.

Direct deposit moves your money through secure banking networks, not the mail. That means less chance for mail theft or address mix-ups.

Electronic payments also leave a clear digital trail, which helps the IRS spot irregularities and reduces the need to reissue refunds.

This transition lines up with Executive Order 14247 and the broader effort to modernize federal payments. Treasury officials, like Fiscal Service Chief Disbursing Officer Linda Chéro, have emphasized the need to strengthen payment integrity across agencies.

Faster Refund Delivery

Electronic refunds are simply faster. File electronically, pick direct deposit, and if your return is clean, you’ll usually see your refund in under 21 days. Paper checks can take six weeks or more.

Direct deposit skips postal delays and goes straight to your account.

During the 2025 filing season, the IRS issued over 93.5 million refunds, with 93% going through direct deposit (modernizing individual refund delivery). Only about 7% got paper checks.

If you don’t have a regular bank account, the IRS says options like prepaid debit cards, digital wallets, and some exceptions will remain. That way, you can still get your money electronically.

Reducing Administrative Costs

Processing and mailing checks isn’t cheap. There’s printing, postage, manual handling, and the cost of reissuing lost or returned checks.

Electronic payments streamline things. Less time spent tracking down undeliverable checks, fewer address errors, and a lot less paper-shuffling for IRS staff.

This isn’t just about saving a few bucks; it’s about shifting resources to taxpayer service and compliance instead of paper handling. Over time, moving most refunds to electronic delivery just makes sense.

Can You Still Get a Paper Check From the IRS?

Paper refund checks aren’t gone entirely, but they’re on their way out. If you don’t provide direct deposit info, you might still get a check—just don’t count on it as your long-term plan.

Who Qualifies for Exemptions

If you file without direct deposit information, the IRS may temporarily hold your refund and send a CP53E notice asking you to update your payment information or request a paper check. If you do not respond, the IRS says it may issue a paper check after about six weeks.

Some folks without access to traditional bank accounts might qualify for alternative arrangements. The IRS has said there will be limited exceptions as it phases out routine paper checks under Executive Order 14247.

Keep in mind, mailed checks have a higher risk of loss, delay, or tampering. That’s a big reason the government’s making this shift.

If you expect a check but get a CP53E notice instead, the IRS may have stopped your direct deposit and switched you to a mailed check for security reasons. That doesn’t mean you’ll always get a paper refund in the future.

Procedures for Exception Requests

IRS procedures may vary depending on your situation. If your refund is held, follow the instructions in any IRS notice you receive, including CP53E, to update your refund delivery method or request alternative delivery options. Usually, not entering direct deposit info on your return triggers a mailed refund.

If you think you qualify for a hardship or access-related exception, watch for updates on the IRS page about phasing out paper tax refund checks. The agency plans to release more instructions before each filing season as this transition rolls out.

When you get a CP53E notice, read it closely. It’ll explain why your refund wasn’t deposited and confirm that a check will be mailed.

Make sure your mailing address is up to date and respond quickly to any identity verification requests. A lot of delays happen when the IRS can’t confirm who you are or where to send the check.

New Electronic Refund and Payment Options

The IRS is delivering most refunds through electronic federal payments now. You’ve got a few secure options, whether you use a bank, prefer a prepaid card, or rely on fintech platforms.

Option 1: Prepaid Debit Cards

Prepaid debit cards let you get your refund without a standard bank account. The IRS can send your refund directly to an eligible card using the routing and account numbers that come with the card.

Just make sure the card accepts direct deposit and ACH transfers. Some prepaid cards have fees—monthly charges, ATM withdrawals, balance inquiries—so check the fee schedule before you decide to use one for your refund.

This option gives you flexibility similar to a regular debit card. You can spend, pay bills, shop online, or hit the ATM, depending on the card’s terms.

When you file, enter the card’s routing and account numbers exactly as shown. Mistakes here are a common reason for refund delays or rejected transfers.

Option 2: Treasury Direct Express Card

The Treasury Direct Express card is a prepaid debit card mainly used for federal benefit payments. While it’s mostly for Social Security and similar benefits, it fits into the larger move away from paper checks.

If you already get federal benefits on a Direct Express card, you might be able to use it for tax refunds—just check with the card administrator to confirm eligibility and get the right account details.

No credit check or bank account is required, but watch out for transaction fees, especially on out-of-network ATM withdrawals.

Always verify routing and account details through official statements or customer service. Using the wrong info can cause headaches.

Option 3: Digital Wallets or Fintech Accounts

Some digital wallets and fintech platforms now offer routing and account numbers for direct deposit, letting you get IRS refunds without a traditional bank.

Confirm your provider accepts ACH deposits from the U.S. Treasury. Not all wallets do, and some may have limits on deposit size or the types of transactions allowed.

Fintech accounts often come with mobile access, instant alerts, and quicker fund availability once the IRS releases your refund. You can track your refund status through your IRS account and in your app.

Before filing, double-check your account and routing numbers in the app. Typos or outdated info are a top cause of delayed refunds.

Option 4: Opening a Basic Bank Account (Low-Fee Options)

Setting up a basic checking or savings account is still the most reliable way to get your refund by direct deposit. Most banks and credit unions these days have low-fee or no-fee accounts built for electronic federal payments—sometimes you just have to ask about them.

To set up direct deposit, you’ll need your bank’s routing number and your own account number. Double-check those numbers before you submit—one wrong digit can throw off the whole process, whether you’re filing yourself or working with a preparer.

Direct deposit usually means you’ll get your refund a lot faster than waiting on a paper check. The IRS says that, with e-filing and no hiccups, electronic refunds are often issued in less than 21 days. Mailed checks? They can drag out for six weeks or longer, per the IRS announcement on phasing out paper refund checks.

To compare account options, check out federally insured banks through FDIC or look at credit union resources. IRS policy updates are posted at irs.gov/modernpayments, and you can manage your payment info through your IRS online account or the Electronic Federal Tax Payment System if you’re sending payments out, whether by EFT or wire.

Transition Steps Taxpayers Must Take

The IRS began phasing out paper refund checks on September 30, 2025, and is shifting most refunds to electronic delivery methods. To avoid delays, you’ll want to have a payment option ready—whether that’s direct deposit or an approved alternative—make sure your account details are accurate, and double-check everything before you file.

Preparing and Updating Banking Information

Before you file, confirm your routing number and account number. Even one wrong digit can hold up your refund for weeks.

Take a close look at the account you’re planning to use. Make sure it’s open, accepts ACH deposits, and the name matches what’s on your tax return.

If you don’t have a bank account, look into opening a low-cost option at an FDIC-insured bank or credit union. The IRS points out that most refunds already go by direct deposit, and paper checks will be phased out starting September 30, 2025, as detailed in the official announcement.

If you switched banks during the year, don’t assume last year’s info will auto-populate correctly—update it. Save a copy of your bank details and keep them somewhere safe so you can reference them if there’s an issue down the line.

Choosing the Right Electronic Option

You’ve got a few electronic choices, depending on whether you’re getting a refund or making a payment.

For refunds, direct deposit into a checking or savings account is still the go-to. If you’re unbanked, you might qualify for prepaid debit cards or certain digital wallets, where those are supported.

If you owe the IRS, you can pay by:

• IRS Direct Pay for a one-time withdrawal from your bank account
• EFTPS (Electronic Federal Tax Payment System) if you want to schedule or automate payments
• Debit or credit cards via approved processors

IRS Direct Pay is straightforward for individuals who just need a quick transfer. EFTPS gives you more flexibility if you’re making quarterly estimated payments or business deposits.

Pick your method and set up your login credentials ahead of time. EFTPS in particular can take a few days for identity verification, so don’t wait until the last minute.

Avoiding Common Errors During Transition

If the IRS can’t send your refund electronically, you’ll get a notice—sometimes a CP53E notice—telling you to update your direct deposit info within 30 days, or you could be in for a long wait. There’s more about that in recent coverage of the CP53E notice tied to paper refund changes.

If you get one of these, respond quickly and follow the instructions exactly. Always use official IRS channels.

Some common mistakes to watch out for:

• Typos in routing or account numbers
• Using a closed or frozen account
• Name mismatch between your bank and tax return
• Ignoring IRS identity verification requests

File electronically when you can, and always double-check your banking details before submitting. A little attention here can save you a lot of hassle later.

How to Receive Your Tax Refund Without a Bank Account

No bank account? You can still get your refund securely. Federal rules now favor electronic payments, but there are practical ways to access your money without unnecessary delays.

Accessing Low- or No-Cost Bank Accounts

Opening a basic account is often the simplest way to get direct deposit. Many banks and credit unions have affordable checking accounts specifically for people who don’t already have one.

You can search for certified accounts through the FDIC’s GetBanked campaign, which lists banks offering safe, low-cost options. These usually support direct deposit, debit cards, online bill pay, and ATM use.

Credit unions are worth a look too—they often have entry-level accounts with low minimums. Visit MyCreditUnion.gov to find nearby federally insured credit unions and see what they offer.

Before you file, confirm your account accepts ACH direct deposits, and verify your routing and account numbers. Even small errors can hold up your refund.

Government Resources and Financial Tools

There are federal programs to help you get payments electronically, even without a typical bank account. If you already get certain federal benefits, you might use Direct Express or another Treasury-approved method.

The U.S. Treasury’s Go Direct initiative lays out the electronic payment options for federal disbursements. Details are at GoDirect.gov if you want to see how government payments can be sent without paper checks.

If you’re moving away from paper refunds because of the IRS phaseout, these tools can help you avoid hiccups and cut down the risk of lost or stolen checks—which, let’s be honest, is a real headache with mailed payments.

Check the eligibility rules and processing times. Some programs require you to enroll or verify your identity before you get your money.

Alternative Refund Delivery Methods

Don’t want to open a bank or credit union account? You might still get your refund on a prepaid debit card or via approved mobile payment platforms, depending on current IRS rules.

The IRS has explained that electronic methods are replacing most mailed checks as part of the transition, as mentioned in the IRS phaseout of paper refund checks coverage.

Plenty of prepaid cards provide routing and account numbers for direct deposit. Make sure the card issuer allows federal ACH payments and doesn’t block tax refunds.

Watch out for fees—some prepaid cards charge for ATM withdrawals, balance checks, or even inactivity. Pick an option that lets you access your full refund with minimal costs and clear terms.

Pros and Cons of Going Paperless

With the IRS phasing out paper refund checks, most people will get refunds electronically. This changes how quickly you get your money—and how you access it.

Pros

• Faster refunds: File electronically and use direct deposit, and you could see your refund in less than 21 days. Mailed checks? They’re much slower.
• Lower risk of loss or theft: Paper checks are just more likely to get lost, stolen, or tampered with, based on the IRS announcement.
• Fewer delivery issues: Direct deposit skips the whole “returned mail” problem.
• More digital options: You can use bank accounts, prepaid debit cards, or digital wallets as the government moves to electronic payments

Cons

• Bank access required: If you don’t have an account, you’ll need to set one up or use an alternative electronic tool.
• Technology dependence: You need to keep your banking info updated and have secure online access to avoid delays.
• Adjustment period: If you’re used to paper or don’t use digital services, there’s a learning curve.

Always double-check your banking info before filing. One wrong number can hold up your refund even more than a mailed check would.

What Happens If You Do Nothing?

If you don’t update your payment info, the IRS might still send you a paper check for now—but expect it to be slow.

Paper checks take longer to print, mail, and clear. They’re also more likely to get lost or returned, as highlighted in CNBC’s coverage of the federal phaseout.

Looking ahead, the IRS is shifting almost everyone to electronic refunds—direct deposit, prepaid debit cards, or digital wallets, as detailed in the official update.

If you don’t act, you might run into:

• Refund delays
• Mail delivery problems
• Scrambling for options when paper checks finally disappear
• Fewer ways to get paid

At some point, paper checks could be gone for good for most taxpayers. If you haven’t set up electronic payment info, you’ll have extra steps before you see your refund.

Looking Ahead: Communication, Scams, and IRS Guidance

The end of paper refund checks doesn’t just change how you get your money—it opens up new angles for scammers, too. You’ll need solid info from the IRS, some basic fraud awareness, and a plan to keep up with updates as things keep shifting.

Staying Informed Through Official Sources

Stick with IRS.gov for real updates about the payment transition. Keep an eye on the IRS page for payment guidance at irs.gov/modernpayments. The IRS says to keep using current payment methods until they post new instructions at the IRS modern payments page.

Sign up for IRS email updates and check for notices in your IRS online account. Don’t rely on social media blurbs or third-party summaries—those can get things wrong, especially when deadlines or rules change.

Identifying and Avoiding Scams

Whenever payment procedures change, scammers get creative. They’ll pose as IRS agents and push for immediate action, especially when confusion is high.

The IRS does not reach out by text, social media, or random email to ask for your personal or banking info. If someone’s pressuring you to “confirm” your bank account for a refund, that’s a big red flag.

Watch for these warning signs:

• Threats of arrest or legal trouble if you don’t act fast
• Requests for payment by gift card, wire transfer, or crypto
• Links that don’t go to a “.gov” website

Check your refund status directly at IRS.gov or through your secure IRS account. Don’t click on payment links from unsolicited messages.

Future Updates and Ongoing IRS Support

Expect more details from the IRS as they finish moving away from paper checks. They’ll roll out updates about direct deposit sign-up, prepaid debit cards for some, and other secure electronic choices.

If you don’t have a bank account, the IRS suggests opening a free or low-cost one before refunds go out electronically. It’s worth checking eligibility now to avoid headaches later on.

Hang on to any IRS notices you receive, and double-check that your mailing address, email, and bank info are up to date in your IRS profile. When something changes, the latest instructions will show up on IRS.gov—not through random alerts or third-party messages.

How My Personal Tax CPA Can Help You Navigate IRS Payment Changes

IRS payment rules are always evolving, and, honestly, it’s easy to get tripped up. My Personal Tax CPA can help you sort through your options and find a payment method that actually makes sense for your situation.

You get advice about things like:

• EFTPS for scheduled or recurring payments
• IRS Direct Pay for quick, one-off transfers
• IRS Online Account for keeping tabs on your balance and payment plans

Each method has its quirks—different setup steps, limits, and deadlines. Picking the wrong one can slow things down or even send your payment to the wrong place.

It’s surprisingly easy to mess up with something as simple as the wrong tax year or a typo in your Social Security number. These little mistakes can drag out for months. Double-checking before you hit submit is honestly worth it.

Need a payment plan? We can walk through how to request or tweak an installment agreement based on the current IRS process. Knowing what you can do ahead of time keeps you from scrambling if you get a notice.

The IRS payment portal at IRS payment options is the go-to for electronic payments. Getting familiar with it now makes the transition from paper checks a lot smoother.

If you want some steady guidance while you switch to electronic payments, just reach out. We’ll put together a plan that fits.

FAQs About IRS Payment Changes

The IRS is now all about electronic payments for refunds and taxes. It’s important to know when paper checks are still in play, how direct deposit works, and what to do if you don’t use a regular bank account.

Are IRS paper checks being discontinued?

Yes. The IRS is phasing out paper refund checks for most people.

The official IRS announcement on the phaseout of paper refund checks says refunds will mainly go out by direct deposit or another secure electronic method. Sometimes, they’ll use prepaid debit cards or digital wallets.

Some sources say the IRS stopped most paper checks after September 30, 2025, as part of a bigger federal move to electronic payments.

Unless the IRS tells you otherwise, expect your money to be sent electronically. If you’re still getting federal payments by check, it’s a good time to update your banking info.

Can I refuse direct deposit from the IRS?

For the most part, no, you can’t demand a paper refund check if you’re eligible for electronic delivery.

The IRS pushes electronic refunds for speed, lower costs, and to help prevent fraud. This is all part of a larger policy shift.

If you skip providing bank info, the IRS might send your refund another electronic way, like a prepaid debit card. Don’t count on a paper check by default.

If you don’t use a bank, try to open a free or low-cost account before you file. The FDIC and credit union directories are solid places to start looking.

What is the safest way to receive a tax refund?

Direct deposit to your own bank account is usually the safest and quickest route.

Electronic refunds cut down on mail theft, lost checks, and fraud. The IRS has said moving away from paper checks makes things more secure and speeds up delivery, as outlined in their electronic refund options guidance.

To keep your refund safe:

• Double-check your routing and account numbers.
• Use an account that’s in your name.
• Don’t send tax docs over unsecured email.
• File early if you can swing it.

If you don’t have a regular bank, consider a federally insured credit union or a reputable prepaid debit card. Make sure the account is FDIC- or NCUA-insured—better safe than sorry.

How long do IRS checks take vs direct deposit?

Direct deposit is a lot faster than waiting for a paper check.

In a normal filing season, most direct deposit refunds show up within 21 days for error-free, electronically filed returns. Paper checks take longer—there’s printing, mailing, and then whatever delays the post office throws in.

Mail holdups, address mix-ups, and check theft can make the wait even longer. Electronic refunds sidestep all that.

If your return gets flagged for review, both methods can take extra time. But once it’s cleared, direct deposit still beats a mailed check.

Can I split my refund across multiple accounts?

Yes, you can. When you file your tax return, there’s an option to divvy up your federal refund across a few different accounts.

Maybe you want a chunk in checking, some in savings, or even send a piece straight to your IRA—totally doable. Just be sure you’ve got the right routing and account numbers handy. The IRS lets you split your refund into as many as three accounts, as long as you use the right form when you file.

• Set aside savings right away
• Put money toward an IRA
• Keep spending and savings separate

Seriously, triple-check those account numbers before you hit submit. One small typo could mean your refund gets delayed or lands somewhere you didn’t intend.