The End of Paper Refund Checks: What the IRS's Shift to Digital Means for You

10/1/2025

The IRS has announced a major change that will impact how millions of Americans receive their tax refunds. Starting September 30, 2025, paper refund checks for individual taxpayers will begin to be phased out, marking a significant step toward a fully digital tax system.

Why Is the IRS Making This Change?

The move to digital refunds is driven by Executive Order 14247, which calls for federal agencies to modernize payments.

The IRS aims to:

  • Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, or delayed than electronic payments.
  • Speed up refunds: Direct deposit refunds typically arrive in less than 21 days, while mailed checks can take six weeks or more.
  • Cut costs: Electronic payments are significantly more efficient and cost-effective for the government.

What Does This Mean for You?

If you already received your refund via direct deposit, you’re ahead of the curve. In fact, during the 2025 filing season, 93% of individual taxpayers received their refunds electronically. But if you’re among the 7% who still receive paper checks, now is the time to act.

Here’s what you need to know:

  • Filing your taxes won’t change; you’ll still use the same forms and methods.
  • Refunds will go digital through direct deposit or other secure electronic methods.

How to Prepare

To ensure a smooth transition:

  • Update your banking information with the IRS.
  • Explore digital payment options that work for your lifestyle.

Let’s Build a Plan That Reflects Your Financial Life

Whether you’re navigating this change, updating your filing method, or simply unsure where to start our Saltmarsh tax team is here to guide you. We’ll help you understand your options, prepare for the transition, and ensure your refund arrives safely and efficiently.

Ready to talk? Let’s build a plan that reflects your life and legacy.

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