IRS Will No Longer Issue Paper Checks

The IRS is officially moving away from paper check refunds. Effective September 30, 2025, the IRS will no longer issue tax refunds in the form of paper checks. Instead, the IRS will only issue tax refunds in the form of electronic payments such as direct deposits or debit/credit card payments. The shift away from paper checks also applies to federal benefits payments, including Social Security and Veterans benefits.

This policy change stems from an executive order issued by President Trump in March of 2025, where the President cited “unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies” as the reason for the shift away from paper checks.[1]

Currently, the electronic-only mandate applies solely to payments issued from the IRS, so taxpayers will still be able to make tax payments to the IRS via paper check beyond the September 30 deadline. However, according to the Executive Order, as soon as practicable, and to the extent permitted by law, all payments made to the Federal Government should be processed electronically, subject to limited exceptions. Taxpayers should keep an eye out for future news about a phase-out of paper check payments made to the IRS.

Taxpayers who have received their tax refunds via paper check in the past can choose to receive their refund by direct deposit in their next annual tax return. Taxpayers who have received federal government benefits, such as Social Security, via paper check can sign up for direct deposit payments for those benefits at GoDirect.gov.

Please direct any questions about how this policy change may affect your tax planning to a Dinsmore attorney.

*Emmy Coyle is a law clerk and is not yet licensed to practice law.