IRS to End Paper Refund Checks by September 2025 — What Taxpayers Must Know
- Sarah Whitfield
- Sep 9
- 4 min read
Updated: Sep 17
Washington, D.C. (September 2025) — In a move that will affect millions of taxpayers, the Internal Revenue Service (IRS) announced it will stop issuing tax refunds via paper check after September 30, 2025. The decision, part of a wider government modernization plan, is aimed at reducing fraud, cutting costs, and speeding up refunds. But the shift has left many Americans scrambling to understand what it means for them — and how to prepare. IRS paper refund checks ending 2025
Why the IRS Is Phasing Out Paper Refund Checks
For years, the IRS has encouraged taxpayers to use direct deposit as the fastest, safest way to receive refunds. Now, with the September deadline approaching, paper refund checks are becoming a thing of the past.
According to the Treasury Department, the change will:
Save hundreds of millions in processing costs.
Reduce the risk of lost or stolen checks.
Cut down on fraudulent refund claims.
Move taxpayers toward faster electronic payments.
“This is about efficiency and taxpayer protection,” an IRS spokesperson said. “Direct deposit ensures refunds get to people more quickly and securely.”
Who Will Be Affected? IRS paper refund checks ending 2025
The policy impacts any taxpayer who still receives paper refund checks. While over 90% of refunds are already issued via direct deposit, millions still rely on paper.
Groups most affected include:
Older taxpayers who prefer checks.
Unbanked individuals who don’t have direct deposit set up.
Low-income households relying on paper for budgeting.
The IRS has stated that hardship waivers will be available for those unable to access digital payment options.
What Are the Alternatives to Paper Checks?
Taxpayers will need to choose from the following options:
Direct Deposit
Refunds sent directly to checking or savings accounts.
Fastest option — usually within 21 days of filing.
Prepaid Debit Cards
For unbanked individuals, refunds can be loaded onto IRS-approved debit cards.
Digital Wallets
New options may include deposits to PayPal, Venmo, or similar services.
Concerns From Taxpayers
Not everyone is happy with the change. Critics argue that millions of Americans without bank accounts could face difficulties.
“I’ve been getting paper checks for decades,” said Linda M., a retiree from Ohio. “I don’t trust online banking, and now I’m forced into it.”
Advocacy groups are pushing for stronger protections and clearer instructions for unbanked taxpayers.
IRS Advice for Taxpayers Before the Deadline
The IRS has urged taxpayers to act early to avoid refund disruptions. Recommended steps include:
Set Up Direct Deposit Now: Provide routing and account numbers when filing 2024 taxes.
Check Banking Details Carefully: Incorrect info could delay refunds.
Consider IRS Debit Card Options: For those without bank accounts.
Beware of Scams: Fraudsters may exploit confusion by posing as IRS agents.
Expert Analysis
Tax experts say the move was inevitable.
“Paper checks are outdated, expensive, and risky,” explained Mark Johnson, a CPA in New York. “This change will modernize the system, but the IRS must do a better job communicating with vulnerable populations.”
Public Reaction Online
Social media has lit up with mixed reactions:
“Finally! No more waiting weeks for a paper check.”
“What about seniors who don’t use online banking? This is unfair.”
“IRS is saving money while making life harder for regular people.”
Looking Ahead
The end of paper refund checks marks a historic shift in how Americans receive refunds. While most taxpayers will benefit from faster deposits, millions must take steps now to avoid disruptions in 2025.
The IRS says more detailed guidance will be released in the coming months. For now, the message is clear: if you still receive paper refund checks, it’s time to prepare.
FAQs — IRS Ending Paper Refund Checks
Q1: When exactly will the IRS stop paper refund checks?
September 30, 2025. After this date, only electronic methods will be used.
Q2: What if I don’t have a bank account?
You can opt for a prepaid debit card or possibly a digital wallet option. Hardship waivers may apply.
Q3: Will this change affect my 2024 tax refund?
No. The change applies to refunds issued after September 2025.
Q4: Can I still request a check in emergencies?
Only in very limited cases, and likely with hardship approval.
Q5: Will direct deposit really be faster?
Yes. Most electronic refunds arrive within 21 days of filing.
Q6: Is this connected to IRS layoffs or budget cuts?
Indirectly. The move helps reduce IRS operating costs and streamline operations.
Q7: What if scammers contact me about switching to direct deposit?
Ignore them. Always update info only through IRS.gov or your tax software.
Final Word
The end of paper refund checks is one of the IRS’s biggest changes in years. While it will save money and speed refunds, it may also create challenges for certain taxpayers.
👉 Stay ahead by switching to direct deposit now — and keep watching IRSRefund.co for the latest IRS updates.
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