Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions, and the IRS has made moves to require taxpayers to receive tax refunds electronically.
Why the Change?
Paper checks cost more, create security risks, and take much longer to process. In addition, the Trump administration directed all federal agencies to eliminate paper check payments.
What Stays the Same?
The IRS has not changed the process for filing your tax return. You will continue to file exactly as you do now.
How to Receive Your Electronic Tax Refund from the IRS
The fastest and most reliable way to receive your refund is through direct deposit into your bank account. Ninety-three percent of taxpayers already use direct deposit, and this change will not affect them.
If you currently receive refund checks, switch to direct deposit when you file your 2025 return. Simply enter your bank’s routing and account numbers on your tax form.
If you prefer not to use direct deposit, you can choose certain mobile apps or prepaid debit cards that provide a routing and account number.
The IRS will still issue a paper check if you request a waiver because you lack access to banking services or electronic payment systems. Keep in mind that paper checks take at least six weeks to process, while electronic refunds typically take about 21 days.
If You Need a Bank Account
You can open an account online through several resources:
- The FDIC’s GetBanked website
- The National Credit Union Administration’s Credit Union Locator
- The Veterans Benefits Banking Program (for veterans only)
If the IRS Moves to Electronic Tax Refunds, How Do You Pay Your Taxes?
For now, the IRS will still accept tax payments by check. However, electronic payments remain the faster and more reliable option. To review all electronic payment methods, visit the IRS Make a payment web page.
If you want to discuss tax payments and refunds, please schedule a virtual meeting with our Emerald Financial Partners tax and accounting experts. We have office availability for meetings in Maryland, North Carolina, and virtually.