A Major Shift in Tax Refunds Is Here: Paper Checks Are Officially Being Retired! Starting September 30, the IRS will no longer issue paper tax refunds, marking a significant move toward fully digital federal payments. But here’s where it gets controversial—while this change promises greater security and efficiency, it also raises questions about accessibility for those without bank accounts or digital payment options.
According to a recent announcement from the Internal Revenue Service, this transition aligns with an executive order signed by President Donald Trump back in March, aiming to modernize how federal payments are handled. Interestingly, this change coincides with the Social Security Administration’s own phase-out of paper checks, which also begins on September 30, signaling a broader government push toward electronic transactions.
Why is the IRS making this change? The agency explains that paper checks are far more vulnerable to being lost, stolen, altered, or delayed—over 16 times more likely compared to electronic payments. By switching to direct deposit, the IRS hopes to reduce fraud, prevent improper payments, speed up processing times, and cut costs. Plus, electronic payments eliminate the risk of refund checks being returned as undeliverable, which can cause frustrating delays for taxpayers.
Does this affect how you file your taxes? Not at all. The IRS assures taxpayers that the tax filing process remains the same—file your return as usual. The only difference is that refunds will now be delivered electronically rather than by mail. More detailed guidance for filing 2025 taxes will be shared before the 2026 tax season begins.
How fast will electronic refunds arrive? Generally, electronic refunds are much quicker, often processed in under 21 days. In contrast, paper checks sent through the mail can take six weeks or more to reach taxpayers. To receive a direct deposit, you’ll need to provide a valid bank account number and routing number when filing your return.
What if you don’t have a bank account? This is where the change might pose challenges. The IRS recommends opening a bank or credit union account if you don’t already have one. To help, they provide resources like FDIC.gov/GetBanked and MyCreditUnion.gov to find financial institutions. Alternatively, some mobile app providers or prepaid debit cards that have routing and account numbers might also be used to receive payments. For those without access to these options, the Treasury plans to offer a special alternative payment method, though details are still forthcoming.
And what about paying your taxes? For now, the way you submit payments to the IRS remains the same. However, the agency is working on expanding electronic payment options to make it easier for taxpayers to pay their taxes digitally. Until then, taxpayers should continue using existing forms and procedures to avoid any delays. Popular payment methods include IRS Direct Pay, which allows fee-free payments directly from bank accounts; the Electronic Federal Tax Payment System (EFTPS) for individuals and businesses; the IRS2Go mobile app; debit or credit card payments; and digital wallets.
This shift to digital payments is a big step forward, but it also sparks important questions: Are we ready as a society to fully embrace electronic payments for all federal transactions? What about those who are unbanked or prefer traditional methods? Could this move unintentionally exclude vulnerable populations? We’d love to hear your thoughts—do you agree with the IRS’s push for modernization, or do you see potential pitfalls? Share your opinions and join the conversation below!
Michelle Del Rey is a trending news reporter at USA TODAY. You can reach her at mdelrey@usatoday.com.
