The IRS just announced a major change: beginning September 30, 2025, paper refund checks for individual taxpayers will be phased out.

Why the IRS is Ditching Paper Checks

This isn’t about cutting out nostalgia. It’s about speed, security, and cost. Paper checks are reportedly 16 times more likely to be lost, stolen, delayed, or altered compared to electronic transfers. 

Because most taxpayers already get refunds electronically, the shift impacts a smaller slice, but for those who rely on checks, it’s a change they’ll feel. In 2025, about 93 % of refunds were delivered via direct deposit, leaving roughly 7 % receiving checks by mail. 

What This Means for You

You’re still filing taxes the same way. The difference is how your refund comes. Here’s what to expect:

• Your refund will arrive digitally (bank account deposit, prepaid card, or digital wallet) rather than via mail.  
• Electronic refunds are typically faster, under 21 days if your return is clean and filed electronically, while mailed checks may take six weeks or more.  
• For those without bank accounts, the IRS is planning alternatives like prepaid debit cards, digital wallets, or limited exceptions.  
• You don’t need to change how you file now. Until more guidance arrives, use existing forms and procedures.  
• Make sure your banking info is up to date. This is your window to act before paper checks disappear.

What You Should Do Now

Here’s a quick checklist to make sure you aren’t surprised:

1. Confirm your bank account and routing numbers are correct. 
2. If you don’t have a bank account, look into free or low-cost options. The IRS references FDIC “GetBanked” and MyCreditUnion.gov.  
3. Watch for detailed IRS guidance to arrive before the 2026 filing season. 
4. If you’re helping clients, flag those who still depend on paper checks and assist them with transitioning.

How Watson & Associates Can Help

At Watson & Associates, we know tax changes can feel like they come out of nowhere. This shift away from paper refund checks is another reminder of how quickly the rules can move. If you’re not sure how to prepare, or just want peace of mind that your banking info and filing process are set up correctly, we’re here to help.

Reach out today and let’s make sure your transition to digital refunds is smooth,  and that you’re ready for whatever comes next in the world of taxes.