Tax Refunds Are Going Digital: What You Need to Know

Big Change Coming in 2025

The IRS, alongside the U.S. Department of the Treasury, is implementing a significant alteration in the issuance of tax refunds. Starting September 30, 2025, the IRS will no longer issue paper tax refund checks to individual taxpayers. 

As part of Executive Order 14247, the Administration strives to enhance the efficiency and security of payments by moving to electronically issued tax refunds.

Why This Change Matters

Increased Security for Taxpayers

The security risks associated with paper checks are substantial. Tax refund paper checks are 16 times more likely to be lost in the mail, delayed in delivery, altered or forged, or stolen and misused than a digital payment. 
Refunding electronically means lower risks and more direct access to a secure digital account. 

Faster Refunds

When taxpayers file electronically and select direct deposit, the IRS generally issues payment within 21 days. 
Taxpayers who receive paper checks may wait an additional 6 weeks. 
The digital payment method streamlines the entire refund process, enhancing the taxpayer’s access to their refund. 

Lower Government Costs

The IRS’s cost of issuing paper checks extends beyond the physical printing of checks. 
The entire refund process is digitized and automated, which means smoother and more predictable operations during the peak tax season—for both the IRS and taxpayers. 

Steps for Taxpayers

Here’s how this change affects you and what steps you can take: 

Nothing Changes in How You File

You can still file your taxes using: 

  • Online tax software 
  • Tax professionals 
  • Free File on IRS.gov 
  • Paper forms (although e-filing is strongly recommended)

Refunds Will Be Distributed Electronically

Refunds will no longer be sent by paper check under most circumstances. The default options will include: 

  • Direct deposit to a bank account 
  • Prepaid debit cards 
  • Digital wallets 
  • Paper checks (only in limited circumstances) 

If You Do Not Have a Bank or Bank Account

If you are unbanked or underbanked, you still have options. The IRS and Treasury have been advocating for access through: 

  • Prepaid debit cards 
  • Digital wallets 
  • Free or low-cost bank accounts available at: 

Tip: Open an account early to avoid delays during tax refund season. 

Predicted Trends for Tax Refunds (2025 Season)

Digital Refunds Are the Preferred Method

  • 93.5 million total refunds issued 
  • 93% (87 million) of refunds issued via direct deposit 
  • 7% (6.5 million) of refunds issued via paper checks 

This shift aligns IRS policy with what is already most beneficial and widely adopted by taxpayers. 

Payments Made to the IRS

Executive Order 14247 also pertains to how taxpayers make payments to the IRS. 

  • Please continue using checks or online payments for now. 
  • New digital payment options are being developed. 
  • The IRS will issue future guidance. 

More information will be available at: 
IRS.gov/modernpayments 

Next Steps for You

  • Please keep your banking information on file with the IRS. 
  • E-file your taxes and select the direct deposit option for your refund. 
  • Open a secure bank account, as one will be needed. 
  • Monitor the IRS website for the most current updates. 

Why This Matters

IRS digital payments and direct deposit are designed to protect your refund, speed up processing, and modernize your tax experience. 

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