IRS ceased issuing paper refund checks effective 9/30/25

Written By Stancey Peprah

The continued use of paper checks by the Federal gov’t poses unnecessary costs, delays and risks of fraud, lost payments, theft and inefficiencies. According to the white house, mail theft complaints have increase substantially since the COVID-19 pandemic. For this and many other reasons, the IRS will no longer issue paper refund checks after 9/30/25.

To every rule there are exceptions; here are some exceptions to the ruling:

(i)    individuals who do not have access to banking services or electronic payment systems;

(ii)   certain emergency payments where electronic disbursement would cause undue hardship, as contemplated in 31 C.F.R. Part 208;

(iii)  national security- or law enforcement-related activities where non-EFT transactions are necessary or desirable; and

(iv)   other circumstances as determined by the Secretary of the Treasury, as reflected in regulations or other guidance.

What does this mean for individuals and businesses?

For individuals

Set up direct deposit

  • Provide bank information: The most secure and fastest way to receive your refund is through direct deposit. When filing your tax return, provide your bank's routing and account numbers. You can find these numbers on a personal check, through your online banking portal, or by contacting your financial institution.

  • Check account information: Double-check that your routing and account numbers are entered correctly on your tax form to avoid delays.

  • Split your refund: You can have your refund deposited into up to three different accounts, including savings, checking, and some retirement accounts. To do this, use tax software or file Form 8888, Allocation of Refund, if you are filing a paper return. 

Explore other electronic payment methods

  • Prepaid debit cards: If you don't have a traditional bank account, you can use a prepaid debit card that has a routing and account number.

  • Mobile apps: Some mobile apps and digital wallets, including PayPal, Venmo, and CashApp, also accept direct deposits. Check with your provider to confirm they accept tax refunds.

  • Resources for bank accounts: The IRS recommends that individuals without a bank account visit the Federal Deposit Insurance Corporation (FDIC) website at FDIC.gov/GetBanked for information on opening a free or low-cost account. 

For businesses

Use the Electronic Federal Tax Payment System (EFTPS)

  • Enroll in EFTPS: The best option for businesses is the free Electronic Federal Tax Payment System (EFTPS). Enrollment is required and can take up to a week.

  • Schedule payments: EFTPS allows you to schedule payments up to 365 days in advance and can handle large tax payments.

  • Set up electronic funds withdrawal: When filing your business tax return, you can set up a withdrawal from your business bank account. You can do this through tax software or by asking your tax preparer. 

Provide bank information

  • Submit corporate refunds: Corporations that want to receive their refund by direct deposit must file Form 8050, Direct Deposit of Corporate Tax Refund, with their Form 1120 or 1120S tax return.

  • Verify bank information: When providing your business account information, confirm the routing and account numbers with your financial institution. 

Actions for all taxpayers

Stay informed

  • Watch for IRS guidance: The IRS is expected to provide further details and formal guidance on procedures and any exceptions for the transition, so stay updated.

  • Update your IRS Online Account: Create or update your account on IRS.gov to ensure all your information, including banking details, is current. 

Prioritize digital security

  • Use secure connections: When entering banking information online, always use a secure connection.

  • Monitor accounts: Continuously monitor your bank account for transactions after providing your information to the IRS. 

Source: White House, IRS

Stancey Peprah
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