The Internal Revenue Service (IRS) has announced important updates for tax refunds being issued this month. Among the changes: the phase-out of paper checks, new deadlines, and who will still receive refunds or benefits.
If you’re waiting on your refund, this article lays out all the details — what has changed, who is affected, timelines, and how to act now to avoid delay.
What’s Changing
1. End of Paper Checks
- Effective September 30, 2025, the U.S. federal government will stop issuing paper checks for most federal payments, including IRS refunds.
- This move is part of Executive Order 14247, “Modernizing Payments To and From America’s Bank Account.”
- Paper checks are considered over 16 times more likely to be lost, stolen, or altered than electronic payments.
2. Who’s Affected
| Category | Status Before Sept 30, 2025 | Status After Sept 30, 2025 |
|---|---|---|
| Taxpayers receiving refunds via paper check | Can continue to receive paper checks for returns processed before the deadline. | Must switch to electronic payment methods (direct deposit, prepaid debit card, digital wallet, etc.). |
| Taxpayers using direct deposit or EFT | Already set up and will continue receiving payments electronically. | No change; these are the preferred method. |
| Unbanked individuals or those without access to electronic banking | May have been reliant on checks. | Must obtain alternative, qualifying electronic payment methods or apply for exceptions. |
3. Timelines & Deadlines
| Deadline | What Happens |
|---|---|
| September 30, 2025 | Paper checks are discontinued for most federal payments. IRS and Treasury will cease issuing them. |
| Post-deadline filings (e.g. returns filed after Sept 30) | Refunds will be issued only via electronic means unless an exception applies. |
Who Can Expect Refunds This Month
While the paper-check option is ending soon, some taxpayers will still receive refunds in September:
- Filers who submitted early, used direct deposit, and whose returns did not require manual review. These refunds are often processed within ~21 days.
- Individuals who filed paper returns before recent cutoff dates. Some of those are just now being processed.
- Those with amended returns (Form 1040-X), although these take substantially longer (minimum ~16 weeks) to process.
How to Prepare & Avoid Delays
- Switch to direct deposit or other electronic payment options now if you typically receive refund checks
- If you are unbanked, explore opening an account, using credit union services, or getting a prepaid debit card.
- File your tax return electronically when possible. It speeds up refund processing and aligns with the upcoming requirements.
- Double check your bank account and routing numbers on your return to avoid misdirected refunds.
Exceptions & Special Cases
- Some people will still be eligible for exceptions under the Executive Order. These include individuals without access to electronic banking systems, emergencies, or situations where electronic deposits are infeasible.
- Taxpayers living abroad may face additional complications, as many foreign bank accounts are not accepted for IRS direct deposit. Planning ahead is important.
The IRS is making a major shift: ending paper checks for tax refunds and most federal payments by September 30, 2025, as per Executive Order 14247.
For many, that means transitioning to direct deposit, prepaid debit cards, or other electronic payment methods. If you’re expecting a refund, file early, check your payment info, and prepare for this change now to avoid delays.
Those without bank accounts need to act to ensure they’re not left behind once paper refund checks are no longer an option.
FAQs
If I file an amended return now, will I still get a paper check?
Unlikely. Amendments are already slower, and after September 30, 2025, paper checks for refunds are being discontinued. You will need an electronic payment option. Exceptions may apply only in very limited cases.
What if I don’t have a bank account for direct deposit?
You may qualify for a prepaid debit card or other government-approved electronic payment method. Also, there are resources to help open low-fee or no-fee accounts.
When will the change really impact refund delivery?
The official deadline is September 30, 2025. Refunds processed on or after that date (unless exceptions apply) will be issued electronically. Returns filed before then may still result in paper checks only if they meet certain conditions.
