The Internal Revenue Service announced new measures that will transform the way millions of taxpayers receive their money starting this fiscal year.
The decision, revealed in an official statement, will be implemented gradually. It is directly linked to an executive order by President Donald Trump.
Although taxpayers should continue to use their usual forms and processes for now, the agency warned that the change will affect both those who file on time and those who file through an extension.
Phasing out paper checks
The most immediate measure is the end of refunds via paper checks. As of September 30, 2025The IRS will begin the transition to electronic methods. Direct deposits into bank accounts are favored. In limited cases, alternatives such as prepaid debit cards or digital wallets will be offered.
Last season, 93% of refunds were already delivered electronically, while only 7% arrived in paper form by mail. The IRS explained that this format is much more insecure: checks are 16 times more likely to be lost, stolen, or altered than digital payments.
What it means for taxpayers
The IRS confirmed that, for now, those who file 2024 returns—even with an extension until December 2024— 2025—must do so under current rules. However, it promised to release new guidance before the 2026 tax season begins. By then, the changes will be fully operational.
The agency emphasized that IRS payments remain unchanged for now. However, the ultimate goal is for all transactions to be conducted electronically. This will gradually eliminate the need for paperless tax processing.
A transition that extends to other agencies
The announcement is not isolated. In August, Citizenship and Immigration Services also launched a new form to allow immigration payments from U.S. bank accounts, as part of the same executive order.
The federal government insists that digitization seeks to modernize, reduce costs, and strengthen security against fraud. For millions of taxpayers, this step will mark a change in the way they interact with the IRS and the tax system in general.