The U.S. federal government has set an expiration date for paper checks. Starting September 30, 2025, no federal agency can issue or accept physical checks as part of its ordinary operations, including the Internal Revenue Service (IRS).
This measure didn’t come out of nowhere: it has a name, number, and presidential signature. It’s called Executive Order 14247, signed on March 25, 2025, under the title “Modernizing Payments To and From America’s Bank Account,” and it mandates the entire government to migrate to electronic transfers for both payments made and funds collected.
The IRS Stopped Mailing Paper Checks: What’s Coming Next
For the IRS, which processes tens of millions of refunds each year, the transition is significant. During the 2025 tax season, the agency issued more than 93.5 million refunds to individual taxpayers. Of that total, 93% were already delivered via direct deposit.
Nearly 87 million people received their money without waiting for the mail carrier. The remaining 7%, however, still relied on the envelope and paper check. These are millions of taxpayers who, heading into the 2026 tax season, will have to change their habits or face significant delays.
The numbers behind the decision are compelling. Paper checks are 16 times more likely to be lost, stolen, returned, or altered than any equivalent electronic payment. Direct deposit refunds arrive in less than 21 days in most cases. Physical checks, when they arrive, can take six weeks or more. The difference is significant for a family relying on that money to cover debt, rent, or a necessary purchase.
Switching to Direct Deposit to Get Your Tax Refund Faster
The IRS formally announced the elimination of paper checks for individual refunds on September 23, 2025, just weeks before the executive order took effect across the federal government. The measure was coordinated with the Treasury Department and presented as a step toward modernizing the public payments system, not as a penalty or an arbitrary restriction.
The specific changes are as follows. For tax year 2025 returns, which will be filed during the 2026 tax season, the IRS will require each taxpayer to provide direct deposit information or demonstrate eligibility for an exception. Returns from prior years are not affected by this rule. The change is effective going forward.
Those Without a Bank Account Have Options
The Federal Deposit Insurance Corporation maintains a directory of banks offering basic accounts with no credit history required, available at FDIC.gov/GetBanked. Accessible credit unions are listed at MyCreditUnion.gov. And certain mobile apps and prepaid debit cards with their own routing number and account also qualify to receive direct deposits from the IRS, provided the provider confirms it.
For those who have already filed their return without including bank details, the process doesn’t end in a dead end. The IRS will send a letter within 30 days of filing requesting this information and detailing how to request an exception through a dedicated phone line.
The IRS Could Hold Your Refund for Six Weeks
If the taxpayer doesn’t respond or receive an approved exception, the agency will hold the refund for six weeks. After that period, to prevent interest from accruing on the amount owed, the IRS will still issue a physical check. In other words, the paper check doesn’t disappear entirely, but it becomes the last resort, not the default option.
Exceptions exist and are clearly defined. The IRS considers cases involving taxpayers without access to banking services, people with disabilities, foreign residents, victims of domestic violence, and people whose religious beliefs conflict with the use of electronic payments. Each exception is evaluated individually.
Since the start of the 2026 tax season, the IRS will enable a new feature on IRS.gov that will allow taxpayers to update their banking information directly from their online account, without needing to submit additional documentation or call any number.
