IRS Is Moving Away from Paper Refund Checks (What Taxpayers Need to Know for 2026)

What’s Actually Changing?

The way you file your tax return is not changing. You’ll still file:

• Electronically (e-file), or
• On paper, if you insist on suffering

What is changing is how your refund is paid.

The IRS is shifting away from mailing paper checks and toward:

• Direct deposit to a bank or credit union account
• Deposit to certain prepaid debit cards
• Deposit to digital wallets or mobile payment apps, where they support routing and account numbers

Paper refund checks will continue only in limited circumstances and by specific waiver.

In practice, most taxpayers won’t notice a dramatic change. Roughly 93–94 percent of individual refunds were already paid by direct deposit in 2025, so the remaining 6–7 percent are the ones most directly affected.

Why Is the IRS Killing Off Paper Checks?

This shift is not about your convenience; it’s about security and cost (though it does help you too):

• Security: Paper checks are far more likely to be lost, delayed, stolen, or altered than electronic payments. Check fraud has surged in recent years, especially since the pandemic.
• Speed:
  • Direct deposit refunds are typically issued within about 21 days after the IRS accepts the return.
  • Paper checks can easily take six weeks or longer, especially with mailing and processing delays.
• Cost: Processing paper checks and dealing with undeliverable mail is significantly more expensive than handling digital payments. The government estimates hundreds of millions in avoidable costs tied to paper-based systems.

For the IRS, electronic refunds are faster, cheaper, and harder to steal. For taxpayers, they’re usually just faster and less annoying.

Who Can Still Get a Paper Refund Check?

Paper checks are not gone entirely, but they are now the exception, not the norm.

Under the executive order and related guidance, paper refunds may still be issued when:

• A taxpayer cannot reasonably access banking services or electronic payment tools
• An emergency or hardship situation makes an electronic payment impractical
• Specific national security or law-enforcement needs require non-electronic payments
• Treasury or the IRS identifies other narrow situations where paper remains necessary

IRS and Taxpayer Advocate Service materials indicate that:

• A dedicated phone line will be available for taxpayers to request a waiver from electronic refunds.
• Taxpayers will also be able to use their online IRS account to explain why they cannot provide banking information and request alternative arrangements.

Even with these exceptions, the default refund method going forward is electronic.

What You Should Do Now If You Expect a Refund

If you’re still in the “paper check” crowd, this is the time to get ahead of the change rather than letting the IRS drag you into it on a delay.

1. Set up direct deposit

The safest and fastest way to get your refund is still direct deposit into an account in your name at:

• A bank or credit union
• A brokerage or mutual fund account that accepts deposits
• An IRA, HSA, or certain education accounts (if permitted and appropriate)

You can also split your refund into up to three accounts, such as:

• Checking for bills
• Savings for emergencies
• An IRA or other long-term bucket

To split a refund on a paper-filed return, you’ll use Form 8888, Allocation of Refund. Most e-file software already supports split refunds without extra forms.

2. Provide accurate banking information

To receive your refund electronically, you need to provide:

• Routing number
• Account number
• Account type (checking, savings, etc.)

For e-filers, the software will prompt for banking details. If missing, IRS guidance indicates:

• Your return may still be processed,
• But you may receive a follow-up message or letter directing you to your online IRS account to add direct deposit information.

For paper filers, expect the IRS to send notices asking for banking info if it isn’t included. Ignoring those requests will often mean:

• You still get your refund
• But with delays, sometimes six weeks or more compared to a normal direct deposit timeline

3. If you don’t have a bank account

For taxpayers without a traditional bank account, there are still options:

• Open a low- or no-cost account through a bank or credit union that allows online account opening.
• Use the FDIC and National Credit Union Administration tools to find institutions offering accessible accounts.
• Veterans can look at the Veterans Benefits Banking Program for participating banks and credit unions that support direct deposit.
• Some prepaid debit cards and mobile apps can receive direct deposits if they provide routing and account numbers. The IRS recommends confirming the correct numbers with the provider before filing.

The IRS has signaled that it intends to expand digital payout options over time so more taxpayers can receive refunds electronically.

Coming Next: Electronic Payments To the IRS

The same executive order doesn’t just push refunds into electronic form; it also points toward a future where payments to the IRS will generally have to be electronic as well.

That transition will take longer and will be rolled out “as soon as practicable,” but the direction is clear. Over time, checks for:

• Balances due on returns
• Estimated tax payments
• Certain fees and penalties

will be replaced by:

• IRS Direct Pay from a bank account
• EFTPS (Electronic Federal Tax Payment System)
• Online debit/credit card payments
• Other approved digital options

For now, the IRS will still accept paper checks, but the agency and the Taxpayer Advocate strongly encourage taxpayers to transition to electronic payments to avoid processing delays and misapplied checks.

Practical Takeaways for Taxpayers

• Paper refund checks are being phased out. Most individual refunds issued after September 30, 2025, will be paid electronically, with only limited exceptions.
• Direct deposit is now the default. It’s faster, more secure, and significantly less likely to be lost or stolen than a paper check.
• If you don’t provide banking information, expect delays. The IRS may still send your refund, but it can take several extra weeks while notices go back and forth.
• If you’re unbanked, you still have options. Low-cost bank and credit union accounts, veterans’ programs, prepaid cards, and some digital wallets can all receive IRS deposits if set up properly.
• Electronic payments to the IRS are the future. Checks are still accepted for now, but taxpayers should start getting comfortable with electronic payment platforms.

For many taxpayers, nothing will feel very different: they were already receiving refunds by direct deposit. The real impact is on those who still relied on paper checks. For them, the message is simple:

Get an electronic refund destination in place now so your money doesn’t sit in processing limbo while the paper check system winds down.

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