The IRS Dropped Paper Checks—How This Impacts Your Tax Refund

If you happen to’re anticipating your 2024 federal tax refund to reach within the mail, it is perhaps the final time you get a paper test from the Inner Income Service (IRS). Underneath a brand new government order signed by President Donald Trump, the U.S. Treasury will cease issuing all paper checks by Sept. 30, 2025, together with for tax refunds.

Which means going ahead, most taxpayers might want to obtain their refunds electronically by means of direct deposit, a debit card, or different digital cost strategies. If you happen to’re not ready, your subsequent refund might be delayed—or worse, by no means arrive.

Why Is the IRS Eliminating Paper Checks?

In response to the White Home, the transfer to digital funds is all about making authorities funds extra environment friendly, reasonably priced, and safe.

“President Trump is cracking down on waste, fraud, and abuse in authorities by modernizing outdated paper-based cost programs that impose pointless prices, delays, and safety dangers,” said the White Home reality sheet concerning the March 25 government order.

From a sensible and economical standpoint, digital funds are the best way to go within the trendy age. Digital transfers are a lot quicker than printing and mailing a test, and sustaining the infrastructure to course of and digitize paper reportedly prices taxpayers greater than $657 million in 2024.

There’s additionally the safety issue. U.S. Treasury checks are 16 instances extra more likely to be misplaced, stolen, or tampered with in comparison with digital transfers. In the meantime, test fraud is rising: A 2025 survey by the Affiliation for Monetary Professionals discovered that 63% of organizations skilled test fraud in 2024. Going digital is anticipated to cut back these dangers considerably.

How Will American Taxpayers Get Their Refunds?

Beginning in fall 2025, all tax refunds might be issued utilizing digital funds switch (EFT) strategies. That features direct deposit right into a checking account, pay as you go debit playing cards, or digital wallets.

The IRS will now not difficulty paper refund checks until you qualify for a selected exception, together with:

• Taxpayers who don’t have entry to a checking account or digital funds.
• Emergency funds the place digital funds would “trigger undue hardship.”
• Safety or regulation enforcement-related instances the place non-electronic transactions are “needed or fascinating.”

In these cases (and every other circumstances the place the Secretary of the Treasury deems it needed), the Treasury will make lodging for an alternate cost methodology.

Can You Nonetheless Pay Taxes by Mail?

Most often, no. The federal government is phasing out incoming paper funds, too. Which means if you happen to’re presently paying your taxes, charges, or fines by test, you’ll want to start out doing so by card or digital pockets starting later this yr, until you qualify for one of many restricted exceptions outlined within the government order.

The way to Put together for the Treasury’s Paper Verify Part-Out

If you happen to usually obtain your tax refund through test, now’s the time to arrange an digital cost methodology. Right here’s tips on how to put together:

• Arrange for digital funds: In case your subsequent tax return signifies that you’re owed a refund, go for direct deposit or one other digital cost methodology while you file.
• Replace your checking account info: The IRS has your info on file. Use the company’s “The place’s My Refund?” instrument to handle your cost preferences.
• Open accounts: If you happen to don’t have a checking or financial savings account, contemplate opening one or exploring pay as you go debit card choices. In response to the manager order, the Treasury will work with monetary establishments and shopper teams to assist unbanked and underbanked People by means of this transition.

Taxpayers who meet a number of of the exemption standards might want to apply for an exception by means of the Treasury. Steering on how to do that has not but been issued on the time of writing.

The Backside Line

The top of paper refund checks marks a significant shift in how People obtain cash from the federal government. If you happen to depend on paper checks in your refund, take steps now to replace your cost methodology earlier than the Treasury’s September 2025 deadline. Getting forward of the curve will assist guarantee your subsequent refund arrives shortly, securely, and with out difficulty.