IRS Changes How Refunds Are Issued

The Internal Revenue Service is making a change in the way you receive your tax refund. Beginning today, (9/30), the IRS will no longer issue paper checks for refunds. The IRS says that they are making that change for several reasons including the fact that paper checks are 16 times more likely to be lost, stolen, or delayed. They also say that electronic forms of payment cost less to process, so they are cheaper.

Nothing is going to change about the way you file your taxes. You will still use the same forms. The change is how you get your refund. Most refunds will be done via direct deposit into your bank account. The IRS says most refunds using direct deposit occur within 21 days, where it can take six weeks or more for paper checks.

Now, what happens for those who do not have a bank account? The IRS says that options like prepaid debit cards and digital wallets will be available. According to the IRS, this is not going to be a huge change as most get their refunds electronically already. In 2025, the IRS issued 93.5 million refunds, and about 93% were sent by direct deposit.