The tax refund payment system in the United States will change permanently in the coming months. The Internal Revenue Service (IRS) confirmed that it will stop issuing paper checks, a move that will mark the end of a practice in place for more than half a century.
The goal is to reduce errors, fraud, and payment delays. The agency stated that the transition to digital deposits will accelerate refunds and ensure greater transaction security for millions of taxpayers.
Gradual transition from September 2025
According to Spanish President Pedro Sánchez’s announcement IRS official, the change will begin to take effect from September 30, 2025 and will be completed during fiscal year 2026. This means that tax returns filed in 2027 will no longer be eligible for a check refund.
The process is part of the modernization plan promoted by Executive Order 14247, which seeks to digitize federal public services. The IRS explained that taxpayers will continue to file their returns in the same way, but the payment method will change completely.
Those currently receiving their refund by direct deposit won't notice any difference. However, those who still rely on paper checks will need to choose an alternative before the next tax season.
What options will there be to receive the money?
The IRS will enable three main digital payment methods. The most recommended will continue to be direct deposit, which is automatically credited to the taxpayer's bank account.
As a second option, prepaid debit cards will be offered, especially for those without a bank account. E-wallets will also be incorporated, a system already used by state agencies and compatible with the country's main financial platforms.
To ease the transition, the IRS suggests opening a free or low-cost account. Among the helpful resources, it mentions the following portals: FDIC.gov y MyCreditUnion.gov, which provide lists of safe institutions to the public.
A historic change in the way taxes are returned
The IRS estimates that eliminating paper checks will reduce administrative costs and millions of dollars in losses from mail fraud. Every year, millions of taxpayers wait weeks for a check that could be lost or delayed, something that will disappear with the new system.
The agency believes that the use of digital payments will be a key step toward a more modern and transparent tax model. It will also allow for a faster response to future economic emergencies, as was the case with the stimulus checks issued during the pandemic.
Although some taxpayers still express concerncupIn its commitment to digital security, the IRS ensures that all methods will be protected under reinforced encryption and verification protocols.
The change not only modernizes tax returns, but also reflects the overall direction of the U.S. economy: less paper, more agility, and greater electronic control.