IRS Is Phasing Out Paper Refund Checks: What to Do

The IRS is transitioning away from paper refund checks for individual taxpayers as part of a broader federal move toward electronic payments. For most taxpayers, the practical takeaway is straightforward: if you expect a refund, direct deposit (or another electronic option) will increasingly be the default, and paper checks may be limited to narrow exceptions.

“The shift away from paper refund checks is something we’re already discussing with clients during tax planning conversations. The most common issue we see isn’t the policy itself — it’s outdated banking details that cause delays after a return is filed. I’d encourage anyone expecting a refund to verify their direct deposit information before filing, not after. A few minutes of preparation now can prevent weeks of waiting later.” — Yoonmi Kim, CPA, Senior Manager, Tax Services

To help clients, prospects, and others, WhippleWood has provided a plain-English guide below—focused on what’s changing, what isn’t, and the practical steps that can help you avoid delays.

Key Details (Quick Summary)

• Paper tax refund checks for individual taxpayers are being phased out beginning September 30, 2025, as required by Executive Order 14247, to the extent permitted by law, as described in the IRS news release IR-2025-94.
• How you file your tax return is not changing. The change is primarily about how refunds are delivered and, over time, how payments to the IRS may be made (see the IRS overview on modernizing payments).
• Electronic refunds are typically faster and more secure than checks mailed through the U.S. Postal Service. The IRS notes that paper checks are far more likely to be lost, stolen, altered, or delayed than electronic payments, as explained in IR-2025-94.
• Taxpayers without traditional bank accounts will still have options. IRS guidance discusses alternatives such as certain prepaid debit cards and digital wallets, along with limited exceptions where no alternative is available (see the IRS Executive Order 14247 FAQs).

What Changed (and What Didn’t)

What changed

The IRS announced that paper tax refund checks for individual taxpayers will be phased out beginning September 30, 2025, as required by Executive Order 14247, to the extent permitted by law, in IR-2025-94.

Executive Order 14247 directs the U.S. Department of the Treasury to stop issuing paper checks for federal disbursements (including tax refunds) and to transition to electronic methods when feasible, while allowing for limited exceptions and accommodations.

What didn’t change

The process of filing your return is not being changed by this policy shift. Taxpayers will continue to file as they normally do. The IRS has also indicated that it will publish any additional guidance needed for future filing seasons on IRS.gov as implementation progresses in its modernizing payments overview.

How Refunds Will Be Delivered Instead

Direct deposit (the most common approach)

Direct deposit remains the fastest and most secure way for most taxpayers to receive a refund. The IRS continues to emphasize electronic delivery as the preferred method, particularly for e-filed returns (see the IRS Refunds guidance and its modernizing payments overview).

Planning tip: The operational issues we see most often are not “tax” problems—they’re administrative problems. Before you file, confirm that the routing and account numbers you plan to use are correct and that the account will remain open during the time your refund is expected to be issued.

Alternatives for taxpayers without a traditional bank account

The IRS has indicated that alternative electronic methods may be available for taxpayers without a bank account. IRS materials reference options such as certain prepaid debit cards or mobile app-based accounts if they can accept direct deposit using a routing and account number, along with limited exceptions where no alternative is available (see the IRS FAQs and modernizing payments overview).

If you are unbanked or underbanked and want to explore low-cost or no-cost account options, the IRS has pointed taxpayers to:

• FDIC: GetBanked
• MyCreditUnion.gov

If You Don’t Provide Banking Information: What to Expect

As the IRS reduces the use of paper refund checks, taxpayers who do not provide electronic banking information may experience delays or additional steps, even though providing direct deposit information remains voluntary. If banking details are missing or rejected, the IRS may send a mailed notice—such as a CP53E—requesting updated information or an explanation of why electronic delivery is not available, with a limited time to respond. The IRS will not request banking information by phone or text; any unexpected calls or messages asking for account details should be treated as potential scams.

For more on common IRS impersonation tactics, see our summary of recent IRS scam warnings.

These changes can create practical challenges, especially for taxpayers who move frequently, have outdated addresses, or reuse old direct deposit information from prior years. Verifying current contact information and banking details before filing can help prevent delays. For taxpayers without traditional bank accounts, the IRS has indicated that alternative electronic options and limited exceptions may apply, while also continuing its broader shift toward digital payment methods for both refunds and payments to the IRS over time.

What This Means for You (Practical Examples)

Here are a few common scenarios where this change can create real-world friction—and how to plan around it.

You move frequently or haven’t updated your address

When the IRS needs additional information, it commonly communicates by mail. If your address is outdated, you may not receive notices promptly. Even if you plan to use electronic refund delivery, maintaining current contact information can reduce disruptions if the IRS needs clarification or sends a request for updated banking information (as described in the IRS FAQs).

Your bank account changed since last year

Taxpayers often reuse last year’s direct deposit information without verifying it. If the account is closed or the bank rejects the deposit, additional steps may be required. If you changed banks, opened a new account, or are using a new prepaid/debit product for direct deposit, verify the correct routing and account numbers before you file.

You are unbanked and prefer receiving checks

The IRS and Treasury recognize that not everyone has access to traditional banking services. This is one reason the transition includes alternative options and limited exceptions where electronic methods are not feasible, which is addressed in Executive Order 14247 and the IRS modernizing payments overview. If you are in this category, a good planning step is to confirm what electronic options you can use well before you file, so you are not trying to solve it after your return has already been processed.

Next Steps: A Checklist Before You File

If you’d like help confirming your refund setup and avoiding preventable delays, our Tax Services team can help you choose the cleanest approach for your situation.

Business owners may also want to coordinate refund/payment planning with Business Tax support.

• Choose your refund delivery method early. If you expect a refund, plan on an electronic method (direct deposit or another approved electronic option) unless you qualify for an exception.
• Confirm account numbers. Double-check routing and account numbers and ensure the account will remain open.
• Watch for mailed IRS correspondence. If the IRS needs updated banking information, the agency indicates that it will communicate by mail—not by unsolicited phone calls or texts.
• If you don’t have a bank account, explore alternatives now. Review account resources and confirm whether a prepaid debit option or mobile app account supports direct deposit with a routing and account number.
• Plan for timing. If you are filing close to deadlines or on extension, building in time for follow-up requests can reduce stress if the IRS needs additional information.

Contact WhippleWood

If you have questions about refund delivery options or IRS notices, WhippleWood can help through our Tax Services (and, for businesses, Business Tax). Contact our team to discuss your next steps.