No more paper refund checks
If you’re used to getting your tax refund by mail, you’ll want to take note — the Internal Revenue Service (IRS) is putting an end to paper refund checks.
In a new joint announcement with the U.S. Treasury Department, the IRS confirmed that it has begun phasing out paper refund payments in favour of electronic options like direct deposit, prepaid debit cards, and digital wallets.
This is the initial stage of the eventual conversion to electronic payments,” the agency stated in a statement.
The transition will start impacting 2025 tax returns, which most individuals will file during January and February 2026.
Why the IRS is shifting
The agency clarifies that the move is to protect taxpayers, speed refunds, and be savers of costs.
The majority of Americans already receive their refunds in electronic form, the IRS says. For the 2025 filing season, the IRS issued more than 93.5 million refunds, and nearly 87 million — or 93% — went to taxpayers in the form of direct deposits. Less than 7% of filers requested paper checks.
By eliminating paper refunds, the agency is hoping to reduce the likelihood of lost or stolen checks and pay out faster for everyone.
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What taxpayers can expect
Though the process of doing taxes itself won’t change at this time yet, refunds will be paid electronically.
Taxpayers who have no savings or checking account will still have options. The IRS says it will expand the use of prepaid debit cards and digital wallets to allow the unbanked to receive their payments in a safe method.
The agency is planning to release detailed guidance before the 2026 filing season on how taxpayers can update their payment methods and confirm their banking details.
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What you should do now
If you’ve always opted for a paper check refund, the IRS recommends taking action soon.
Taxpayers should make sure their bank information is accurate or open a free or low-cost account ahead of the next filing season.
That way, when tax refunds start going out in 2026, your money will arrive quickly and securely — directly to your account.
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