The IRS has confirmed what many of us expected: paper refund checks are on their way out. Starting September 30, 2025, the agency will no longer issue tax refunds by paper check for most taxpayers. This is part of a broader government push to move away from paper and go fully digital.
The change comes from Executive Order 14247, signed earlier this year by President Donald Trump. The order requires federal agencies to replace paper checks with electronic payments like direct deposit, prepaid cards, or digital payment options.
For most people, this will not be a big adjustment since nearly 93% of refunds already arrive by direct deposit. But if you are one of the millions of Americans who still count on a paper check, this change will matter to you.
Why is the government moving away from paper payments?
The decision is not just about convenience. It is about cost, efficiency, and security. Paper checks create problems that electronic payments help solve.
Here are some key reasons the IRS is making the switch:
- Fraud and theft – Treasury checks are 16 times more likely to be lost, stolen, or altered compared to electronic payments.
- Higher costs – The U.S. Treasury says issuing a paper check costs about 50 cents, while an electronic payment costs less than 15 cents.
- Delays – Paper checks can take six weeks or longer to arrive, while direct deposit usually hits your account within 21 days if your return is filed correctly.
- Wasteful systems – Maintaining old paper check infrastructure cost taxpayers over $657 million in 2024.
So, if you already get your refund by direct deposit, this is good news. Your refund will keep arriving faster and more securely.
Who will still get paper refund checks after september 30?
Not everyone can make the switch to electronic payments. Some households do not have access to banking services at all. According to the Federal Deposit Insurance Corporation (FDIC), a household is considered “unbanked” if no one in the home has a checking or savings account at a bank or credit union.
In 2023, about 5.6 million U.S. households — or 4.2% of all households — were unbanked. For these Americans, paper checks remain the only option.
Other groups who may continue to receive paper refund checks include:
- Taxpayers living abroad – Right now, refunds can only be deposited into U.S. banks or certain international banks that have direct deposit agreements. If you live elsewhere and do not have one of those accounts, you will still need a paper check.
- Seniors and hardship cases – Some exceptions exist for people born before May 1, 1921, or for those who live in remote areas without reliable digital access. Mental impairment or other hardships can also qualify someone for a waiver.
- People without prepaid cards or digital banking apps – While many prepaid debit cards and apps like CashApp can now accept direct deposits, not everyone has or trusts these options.
What options do unbanked households have?
If you are unbanked, you are not stuck with paper forever. You have some alternatives to explore that can still make your refund come faster:
- Prepaid debit cards – Many allow you to set up direct deposit with a routing and account number.
- Digital wallets and apps – Platforms like CashApp or PayPal may accept refunds, depending on the provider.
- Credit union or basic bank account – Some banks and credit unions offer low-cost “second chance” accounts designed for people without traditional banking.
It may take a little effort to set up, but in the long run, you will save yourself time and avoid waiting weeks for a check in the mail.
What should taxpayers do next?
For now, the IRS says you should keep using the same forms and filing methods for your 2024 and 2025 returns. Updated guidance for the 2026 filing season will be released before the season begins.
If you want to keep receiving your refund quickly, the best move is to set up a direct deposit account before the September 30 deadline. If you qualify for a waiver, you can contact Treasury at 855.290.1545 or complete the waiver form listed on their website.
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