The IRS has made a significant announcement that will impact how Americans receive their tax refunds. Beginning September 30, 2025, the agency will cease issuing paper checks on most refunds, a change that can be linked to the Executive Order 14247 that instructs federal agencies to upgrade payment options and move to electronic ones wherever possible. That is, refunds will be made by means of direct deposit, prepaid debit cards, or digital wallets as opposed to printing and mailing them.

Although there will always be an exception to people who cannot access electronic payments, the previous system of waiting till a paper check comes to the mailbox is being replaced. This will be a relief to a number of taxpayers. Direct deposits normally take approximately three weeks in case of e-filing of the returns, as well as the absence of issues, whereas paper checks may take up to six weeks, among others.

They’re also safer. There is a much higher chance of lost, stolen, or tampered paper checks. Electronic payments reduce such risks and save the government money that would otherwise be used in printing, processing, and postal services. This is already the case with the majority of people, and actually, over nine out of ten refunds will be delivered electronically in the year 2025.

Fast, reliable digital transactions now shape how money moves in almost every sector. The push toward electronic payments is visible not just in the United States but also in Canada, where similar expectations for speed and security are shaping financial habits. Online casinos illustrate this clearly, with deposits and withdrawals managed electronically. It’s common for players comparing the best online casinos in Canada to consider payment systems just as much as the games offered. The IRS decision to phase out paper checks follows the same logic, shifting refunds into the digital stream.

However, there are obstacles that accompany the change. Accuracy is one of the largest ones. Taxpayers who want to receive a refund straight into their bank account must give their bank account number and Routing number. Even the slightest error there might result in the delay, diversion, or loss of money. The IRS does not have the responsibility to check the numbers entered incorrectly, and thus, it is up to the taxpayer and their bank to resolve it.

Another issue is identity theft. On the one hand, electronic refunds remove a number of risks associated with real checks, yet on the other hand, criminals can use online IRS accounts or bank details. The agency suggests that a person should use an Identity Protection PIN, check the financial accounts frequently, and ensure that online accounts have a strong password and two-factor authentication.

The shift also raises questions for the unbanked population. People without checking or savings accounts won’t be able to receive a direct deposit. To bridge that gap, the IRS plans to make prepaid debit cards and digital wallets more widely available. Limited exceptions for paper checks will remain in place, especially for those without any access to electronic payment systems or in emergencies, but the direction is clear, refunds are moving digital. Guidance for the 2025 filing season will be released ahead of time to help people make the transition, but those who still rely on paper checks would be wise to start preparing now.

With the deadline set, taxpayers who still count on paper checks have one more full tax season before this system winds down. For most, the switch will mean quicker access to refunds and fewer security risks, but it also calls for a bit of preparation to make sure the transition is as smooth as possible.