President Trump released the Executive Order 14247 to modernize the payment methods to advance and electronic payments. This order includes the phase out of the tax refund paper checks. Taxpayers wondering about the paper check refund for next tax season can find everything here.
The federal government took this action to increase efficiency, reduce costs, and fight against frauds. The IRS and US Department of Treasury are working together to make this shift to electronic payments and announced the paper tax refund check will phase out from 30 September 2025.
This is the first step towards the no paper check refund, the agency is yet to release the detailed guidelines for the 2026 filing season. So, until then the filing options are the same for people filing 2024 tax year returns till 31 December 2025.
Will there be No Paper Check Refund from 2026?
The Trump Administration has taken steps to eliminate the paper check for all transactions to modernize the payment methods and reduce the cost associated with it. As per the Executive Order, the IRS has announced that the paper check refund will be rolled out from 30 September 2025.
So, taxpayers who have filed their 2024 tax year return and usually opt for the paper check refund should know that there will be no paper check refund from 2026. According to reports, around 7% of individual taxpayers received the refund through mail, whereas 93% of those went for direct deposit.
How does no paper check refund benefit taxpayers and agencies?
The government has decided on no paper check refund and it will benefit the individual taxpayers and agency in the following way:
- Faster Refund process: With electronic refunds, taxpayers have their refund in their bank within a few weeks of filing the return, if there will be no issue in the filed tax return, while the paper check takes a month or two.
- No damage or missing payment: The paper check has the greater chance of missing, lost, stolen, or damaged that wastes the agency and individuals both. With electronic payment methods, we can deal with this problem.
- Reduce Costs: The government bears approx 50 cents to process each paper check refund, whereas the electronic payment only costs 15 cents. So, it will also benefit the agency and the government in cutting down the refund process cost.
- Avoid delays: The paper check can cause delays depending on the mailing service, while there is no such thing in electronic payment unless, tax return has some issue or the bank.
- Fighting frauds: The agency can also keep track of the refund and avoid the fraudulent activities.
What changes will it bring for taxpayers?
With the change in the refund payment method, many of you must be wondering what changes it brings in the next season. Though IRS will release an proper guidelines, but here’s what you can expect:
- Tax return filing: Taxpayers will continue to file the tax returns as they used to file from the current filing methods. However, the agency encourages the taxpayers to go for an e-file, direct filing option as they process much faster.
- Digital payments: The refund will be either delivered through direct deposit or electronic payment methods, so if you opt for paper check it will create problems.
- Bank account or other options: Taxpayers can have other options to access the refunds from bank accounts, such as digital wallets, debit cards, or others.
What should be the next steps for the taxpayers?
Now that it is confirmed that there will be no paper check refund from next tax season, you prepare for the transition to avoid any issues. Here’s what you can do to prepare for the electronic payment method for refund:
- Open a bank account: If you do not have a bank account, you should open a low-cost bank account or check your banking information if you already have the account to later enter with your tax return.
- Direct Pay: You can also use the IRS Direct Pay to get your refund directly to your bank account through EFTPS or use the IRS mobile app IRS2Go app.
- Keep an eye on IRS notice: The IRS will share the detailed guide on the modern payments here, so stay updated and learn about your refunds.
The 2026 tax season will be a new beginning for modernized payments as all transitions will be made through electronic payment methods from refunds to tax payments. So, taxpayers should be ready for the change and prepare for the 2026 tax season filing properly.
Disclaimer: Information about discontinuing paper check refunds in 2026 is for awareness only. Official policies and timelines are determined by the IRS.
