IRS to End Paper Checks in 2025

Beginning in September 2025, the federal government will phase out paper checks to the Internal Revenue Service (IRS), ending a long chapter in the way Americans exchange money with the agency. Under a sweeping mandate issued by the U.S. Treasury, all federal disbursements including tax refunds must be paid electronically, and paper refund checks will no longer be issued. At the same time, the IRS will no longer accept paper payments except in limited cases.

For clients who still use the mail for tax payments or refunds, the change will require adjustments. Without an electronic payment method on file, your refund could be delayed or may not arrive at all. If you are still mailing a check to pay your taxes, that option will quickly disappear.

Why Refunds and Payments Are Going Digital

The move to eliminate paper checks is part of a federal effort to modernize how government money is sent and received. Under a March 25 executive order, the U.S. Treasury will require most federal payments including IRS tax refunds to be made electronically starting Sept. 30, 2025. The same policy also applies to payments sent to the government, such as tax liabilities, fees, and penalties. Paper checks will be permitted only in limited circumstances.

The Treasury cites several reasons for the shift. Electronic payments are typically faster to process and less costly to administer. Maintaining paper-based systems—including printing, mailing, and processing checks—reportedly costs taxpayers hundreds of millions of dollars each year. Security is also a factor. Paper checks are more susceptible to theft and fraud compared to direct deposit and other digital payment options.

According to the Treasury, federal agencies will still accommodate those who qualify for an exception, such as individuals without access to a bank account or those for whom an electronic method would create undue hardship.

Preparing for the End of Paper Checks

Taxpayers who currently receive refunds by paper check should begin transitioning to electronic payment methods. When filing your next return, choose direct deposit or another digital option to ensure timely receipt of your refund. It is also important to verify that the IRS has your correct bank account information.

For those without traditional bank accounts, prepaid debit cards and digital wallets offer alternatives.

AAFCPAs advises that clients review their payment and refund preferences ahead of the September 2025 deadline. Transitioning to electronic payments may help avoid delays and ensure timely processing of tax refunds and payments. Clients are advised to confirm their banking information and consider digital payment options to stay prepared for the change.

How We Help

AAFCPAs offers tax planning and compliance solutions that help individuals, families, businesses, and nonprofit organizations manage their tax obligations and opportunities. Our team combines thorough knowledge of tax laws with practical and proactive strategies tailored to each client’s situation and goals. We focus on minimizing tax liabilities, managing compliance risks, and uncovering long-term savings where possible. By staying current with changes in tax regulations, we provide clear, timely guidance that helps clients navigate complex tax requirements. Whether addressing business transactions, international tax issues, estate planning, or charitable giving, AAFCPAs delivers personalized support designed to align with your financial objectives.

These insights were contributed by Daniel Seaman, CPA, Tax Partner and Ernest Carruthers, CPA, MST, Tax Manager. Questions? Reach out to our authors directly or your AAFCPAs partner. AAFCPAs offers a wealth of resources on tax planning and compliance. Subscribe to get alerts and insights in your inbox.