Are you still using checks for IRS payments and refunds? If you said yes, then you are in for a few changes. IRS phasing out paper checks, making payments faster and safer for taxpayers.
If you’ve already been making and receiving IRS payments via direct deposit, you’re good to continue. If you’ve been sending and receiving paper checks, it’s time to update your process to the digital age. You’ll have to get on board with the IRS phasing out paper checks.
Why the IRS Is Making the Change
Paper checks have been a long-standing method for the IRS to pay out refunds and other transactions. But they come with headaches—delays in the mail, risks of theft or fraud, higher administrative costs, and extra stress when something goes wrong. By transitioning to electronic payments, the IRS aims to modernize its operations and keep pace with the way most of us already pay and receive payments in our daily lives.
This move is also part of a broader government-wide initiative to streamline payment systems. Just like banks and businesses have encouraged online transactions, the IRS is stepping away from paper to make the process more consistent, faster, and safer.
IRS Phasing Out Paper Checks
Under Executive Order 14247, the IRS will begin phasing out paper refund checks for individual taxpayers, effective September 30, 2025.
That’s right. No more refunds via check. Get that bank account ready to accept your money.
To me, this is simpler, quicker, and much easier to track—no more lost checks in the mail.
It seems like a win-win to me, especially for those who travel like RVers and digital nomads.
The Benefits for Taxpayers
For most people, this change is good news. Here’s why:
Cost savings – Although taxpayers may not see this directly, eliminating paper reduces costs for the IRS, which is ultimately funded by all of us.
Faster payments – Direct deposits usually arrive within days, while checks can take weeks.
More secure – Electronic payments lower the risk of stolen or lost checks.
Less hassle – No waiting for the mail, no trips to the bank, no wondering if a check will clear.
Possible Drawbacks and Challenges
Of course, not everyone is ready to go digital. Some taxpayers prefer paper checks, don’t have bank accounts, or are concerned about sharing their banking information with the IRS. Others may have concerns about errors—what happens if your account info is wrong or your bank rejects the deposit?
For now, paper checks may still be available in limited situations, but over time, the IRS is likely to narrow those exceptions. Taxpayers who aren’t set up for direct deposit should consider safe alternatives, such as prepaid debit cards or trusted financial institutions.
What You Should Do Next
If you typically receive a paper check from the IRS, now’s the time to get ahead of the changes. A few steps to consider:
- Update your direct deposit info – Make sure your bank details are on your tax return. Have a savings account specifically for this purpose, so there’s less risk.
- Consider a secure bank account – If you don’t already have one, opening a low-cost checking account can make it easier to receive payments.
- Double-check accuracy – Typos in routing or account numbers can cause delays. Always confirm your details before filing. If you use a tax preparer, double-check that the account is correct for your filing.
- Stay informed – Follow IRS updates so you know exactly when paper checks will no longer be an option for your situation.
Looking Ahead
This guidance is just one step in a larger effort by the IRS to modernize its processes. From expanding online taxpayer accounts to offering digital notices and payments, the agency is working to bring tax administration into the 21st century. While change can be uncomfortable—especially if you’ve always relied on paper checks—the shift to electronic payments is designed to make things faster, safer, and more efficient for taxpayers and the IRS alike.
Is it worth opening a bank account just to receive your refund? You decide that one, but I’d say, yes. This is especially true for those who travel, such as RVers and digital nomads, who aren’t in one place to receive mail.
Why not make it simple and get that direct deposit straight to a bank account, vs. waiting for a check or other method to arrive at your mail service and then paying to forward it to yourself. There’s too much that could go wrong in that scenario, and I’d say that you’d like to receive your refund sooner rather than later. Am I right?
