global Tax IRS Announces Paperless Refunds: Key Details for 2025 Tax Filers October 02, 2025 Starting September 30, 2025, the IRS is phasing out paper tax refund checks for individual taxpayers. Here’s what you should prepare for. Attention taxpayers…the IRS is officially going paperless for individual tax refunds starting September 30, 2025. This move is part of a larger federal push to modernize payments and stop issuing paper checks. Here are the details. Quick Takeaways Paper tax refund checks for individuals are being phased out starting September 30, 2025.Most taxpayers already receive refunds via direct deposit—93% in 2025.If you don’t have a bank account, alternatives like prepaid debit cards or digital wallets are available. Why is the IRS going digital in 2025?While only about 7% of taxpayers still receive refunds by check, that still amounts to around 6.5 million people. Paper checks have long been prone to delays, and in some cases, theft, on their way to taxpayers. By going digital, the IRS hopes to issue faster, safer and more reliable payments. Refunds can reach taxpayers in less than 21 days when they file electronically and choose direct deposit (as opposed to six weeks or more for paper checks).Who is impacted by the paperless refund change?The transition to digital is starting with individual tax refunds, with businesses and other taxpayers to follow later. What does this mean for taxpayers?Keep in mind that:Filing does not change- Taxpayers will still file returns the same way you always have using any of the existing filing options.Refunds will be delivered digitally- Refunds will now be sent through direct deposit or other secure electronic methods.Most taxpayers already get their refunds by direct deposit – For the millions of taxpayers that already receive their refunds by direct deposit, no action is required other than to keep their bank account information current.Payments to the IRS are also going electronic – Also effective September 30, 2025, any individual or fiduciary tax payments made to the IRS are required to be electronic. For details on how the IRS is also digitizing tax payments, check out our previous post: Deadline ALERT: IRS Moves to 100% Electronic Payments on September 30, 2025. "If you don’t already have your banking info ready, now is the time to set it up. Open a free or low-cost account to make sure your refund goes directly to you without delays." -Jade Toher Are there any exceptions? Yes, if you do not have a bank account, the IRS is offering alternatives like prepaid debit cards, digital wallets or limited exceptions for special situations.You can open a free or low cost bank account. Check out FDIC: GetBanked and MyCreditUnion.gov for account options.
