What You Need to Know About Electronic Tax Payments Since the IRS Is Phasing Out Paper Checks
The way the IRS handles tax refunds and payments is changing significantly. The federal government will stop sending paper checks for most federal payments, including tax refunds, by September 30, 2025. This change will affect millions of taxpayers who get their refund checks in the mail.
Understanding this can help you prevent delays and make sure you get your refund as soon as possible.
Why the IRS is Getting Rid of Paper Checks
Under Executive Order 14247, “Modernizing Payments to and From America’s Bank Account,” the federal government is making this modification. The executive order says that federal agencies, like the IRS, must switch to electronic payments for safety and efficiency reasons.
The Bureau of the Fiscal Service says that “paper checks are more than 16 times more likely to get lost, stolen, changed, or delayed” than electronic payments. This number alone explains many reasons for the change. Taxpayers have to wait weeks or even months for the IRS to investigate and reissue payments when checks go missing or are stolen.
What to Expect and When
The IRS will start using these new rules for tax returns submitted in 2026 for the 2025 tax year. Taxpayers can still get paper checks for their 2024 and earlier tax returns, even if they filed them on extension as long as payment is processed before December 31, 2025.
The IRS will request that taxpayers give them direct deposit information when they file their 2025 tax return. If you file electronically without including banking information, you’ll receive a notification. The IRS may still accept and process returns that don’t include direct deposit information, but refunds will take much longer.
If you file without giving the IRS your direct deposit information, they will send you a letter asking for it within 30 days. The Taxpayer Advocate Service says that “if a taxpayer doesn’t give the IRS direct deposit information, they will send a paper check after six weeks.” This built-in delay provides taxpayers time to update their information and ensures that everyone receives their refund in the end.
How to Get Your Tax Refund Electronically
For taxpayers, setting up electronic refund delivery is generally not complicated. Direct deposit into a checking or savings account is the most common way. All you need for this is, a bank’s routing number and your account number (the account where the IRS will should deposit the refund).
Taxpayers can still receive an electronic reimbursement, even if they don’t have a traditional bank account, as long as they have one of the following:
- A prepaid debit card with an account and routing number
- A mobile payment app such as Venmo or PayPal which can provide you with routing and account information for direct deposits.
These taxpayers should check with their card issuer or app provider to validate these numbers before providing them to the IRS to avoid delays.
Form 8888 lets taxpayers direct deposit their refund into up to three different accounts, which is great for people who want to split their refund between more than one account. This option works well if you wish to allocate portions of your refund to savings, checking, and retirement accounts.
We make it easy to complete this form when completing your return with E-file.com.
Taxpayers who don’t have bank accounts
Approximately 4.5% of U.S. homes don’t have bank accounts. If you are one of these individuals, there are several resources available to help you set up an account for electronic reimbursements.
The FDIC has a full list of free and low-cost banking services across the country at FDIC.gov/GetBanked. A lot of banks and credit unions have accounts that don’t charge monthly fees and don’t require a large deposit to open.
Another option for your tax refund, when preparing a return on E-file.com, is the GreenDot debit card. This prepaid card is available through E-file.com and allows taxpayers to get their tax refund electronically, without having access to a traditional bank account.
Ways to Pay Your Taxes Online
The IRS is likewise moving towards collecting all payments electronically. The Taxpayer Advocate Service says that “it is expected that the electronic payments requirement will not happen until 2027 or later,” with that said, the IRS has stated it will publish detailed guidance regarding payments for 2025 tax returns before this filing season begins.
When this change concludes, you’ll no longer be able to mail a paper check, but you will be able to pay your taxes online in several ways. You can pay straight from your bank account for free using IRS Direct Pay. You don’t have to sign up for this service, and you can arrange payments up to a year in advance.
The IRS is currently making exceptions for taxpayers who can’t use electronic payments, such as those living abroad, people with strong religious views, and others who can’t use electronic methods. Before the 2026 filing season, the IRS will tell you how to ask for exclusions.
When you file your return, E-file.com makes it easy to add direct deposit information. Before you send in your information, our software asks you to enter your banking data and checks it. If you want to divide your return among several accounts, you can use the Form 8888.
Start E-Filing Your Taxes Today
The IRS’s switch to electronic payments is a big move, but it ultimately helps taxpayers by speeding up refunds and making them safer. Filing online with E-file.com and providing your direct deposit information will ensure you receive your refund quickly and without any issues from this change.
More information on electronic payment options can be found at the IRS modernization payments page here.
Are you ready to file your taxes online? Today, start your return and make sure your refund comes quickly and safely through direct transfer.
Frequently Asked Questions
What happens if I can’t provide direct deposit information when filing?
The IRS will accept your return, but it will send you a letter requesting your banking information. If you don’t respond within six weeks, they’ll issue a paper check. This process ensures you receive your refund even if you need extra time to set up electronic payments.
Are there exceptions to the electronic payment requirement?
Yes. The IRS is developing exceptions for taxpayers who face barriers to electronic payments. This includes taxpayers living abroad, those with deeply held religious beliefs, and others for whom electronic methods aren’t feasible. The IRS will provide guidance on requesting exceptions before the 2026 filing season.