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

If you’re expecting your 2024 federal tax refund to arrive in the mail, it might be the last time you get a paper check from the Internal Revenue Service (IRS). Under a new executive order signed by President Donald Trump, the U.S. Treasury will stop issuing all paper checks by Sept. 30, 2025, including for tax refunds.

That means going forward, most taxpayers will need to receive their refunds electronically through direct deposit, a debit card, or other digital payment methods. If you’re not prepared, your next refund could be delayed—or worse, never arrive.

Why Is the IRS Eliminating Paper Checks?

According to the White House, the move to digital payments is all about making government payments more efficient, affordable, and secure.

“President Trump is cracking down on waste, fraud, and abuse in government by modernizing outdated paper-based payment systems that impose unnecessary costs, delays, and security risks,” stated the White House fact sheet about the March 25 executive order.

From a practical and economical standpoint, digital payments are the way to go in the modern age. Electronic transfers are much faster than printing and mailing a check, and maintaining the infrastructure to process and digitize paper reportedly costs taxpayers more than $657 million in 2024.

There’s also the security factor. U.S. Treasury checks are 16 times more likely to be lost, stolen, or tampered with compared to electronic transfers. Meanwhile, check fraud is rising: A 2025 survey by the Association for Financial Professionals found that 63% of organizations experienced check fraud in 2024. Going digital is expected to reduce those risks significantly.

How Will American Taxpayers Get Their Refunds?

Starting in fall 2025, all tax refunds will be issued using electronic funds transfer (EFT) methods. That includes direct deposit into a bank account, prepaid debit cards, or digital wallets.

The IRS will no longer issue paper refund checks unless you qualify for a specific exception, including:

• Taxpayers who don’t have access to a bank account or digital payments.
• Emergency payments where electronic payments would “cause undue hardship.”
• Security or law enforcement-related cases where non-electronic transactions are “necessary or desirable.”

In these instances (and any other circumstances where the Secretary of the Treasury deems it necessary), the Treasury will make accommodations for an alternative payment method.

Can You Still Pay Taxes by Mail?

In most cases, no. The government is phasing out incoming paper payments, too. That means if you’re currently paying your taxes, fees, or fines by check, you’ll need to start doing so by card or digital wallet beginning later this year, unless you qualify for one of the limited exceptions outlined in the executive order.

How to Prepare for the Treasury’s Paper Check Phase-Out

If you normally receive your tax refund via check, now’s the time to set up an electronic payment method. Here’s how to prepare:

• Set up for electronic payments: If your next tax return indicates that you are owed a refund, opt for direct deposit or another digital payment method when you file.
• Update your bank account information: The IRS has your information on file. Use the agency’s “Where’s My Refund?” tool to manage your payment preferences.
• Open accounts: If you don’t have a checking or savings account, consider opening one or exploring prepaid debit card options. According to the executive order, the Treasury will work with financial institutions and consumer groups to support unbanked and underbanked Americans through this transition.

Taxpayers who meet one or more of the exemption criteria will need to apply for an exception through the Treasury. Guidance on how to do this has not yet been issued at the time of writing.

The Bottom Line

The end of paper refund checks marks a major shift in how Americans receive money from the government. If you rely on paper checks for your refund, take steps now to update your payment method before the Treasury’s September 2025 deadline. Getting ahead of the curve will help ensure your next refund arrives quickly, securely, and without issue.