IRS Phases Out Paper Refund Checks: What Changes for You

On Sept. 23, 2025, the IRS and the Treasury Department announced that paper tax refund checks for individual taxpayers would be phased out starting Sept. 30, 2025 (IRS news release IR-2025-94). The change comes from Executive Order 14247, signed March 25, 2025, which moves federal payments to electronic methods "to the extent permitted by law." By the 2026 filing season, the IRS said most taxpayers must give routing and account numbers to get their refunds (IR-2026-12).

What changed and what didn't

Filing is the same. You still file your return the way you always have, whether on your own, with software, through a volunteer site or with a paid preparer. In its January 2026 FAQs (IR-2026-13), the IRS said the order changes how refunds are issued and how payments are made, not how returns are prepared or filed.

Refunds go electronic. Most refunds now go by direct deposit. The IRS says refunds that are e-filed with direct deposit and have no problems are usually issued in less than 21 days. Refunds sent by mail can take 6 weeks or longer.

Most people already used direct deposit. In the 2025 filing season, about 93% of individual refunds, almost 87 million, went by direct deposit, and only 7% were mailed as checks (IR-2025-94).

Where your refund can go

The IRS lists these options on its modern payments page:

• A checking or savings account at a bank or credit union, using routing and account numbers.
• Certain prepaid debit cards and mobile payment apps that provide a routing and account number. Check with the provider to confirm which numbers to use.
• If you don't have an account, the IRS points to FDIC.gov/GetBanked and MyCreditUnion.gov for free or low-cost options.

The IRS says it will issue a paper check only in limited exception cases.

The CP53E notice

If your return shows a refund but the bank information is missing, invalid or rejected, the IRS may send a CP53E. You may also get one if the IRS corrects a return and the change creates a refund, for example after finding estimated payments you didn't claim. According to the IRS's CP53E page:

1. You have 30 days from the notice date to add or update a bank account, or to choose an exception that allows a paper check.
2. You make the update only in your IRS Online Account, through the "Add bank account" notification. IRS phone staff can't change bank details for you.
3. You get one try. If the deposit is rejected after that, the IRS issues a paper check.
4. The account must be in your name or be a joint account you share.
5. If you don't respond, the IRS will issue a paper check after 6 weeks.

Payments to the IRS

The executive order also covers payments you make to the IRS, but the IRS said in January 2026 that it still accepts checks and money orders for now (IR-2026-13). It encourages electronic options such as IRS Direct Pay, EFTPS and your Online Account.

What to do now

Before you file, have your routing and account numbers ready and check them twice. A single wrong digit is a common reason a deposit is rejected. If a CP53E arrives, act within 30 days. A refund can still be reduced to pay other debts; see refund delays and offsets. Be wary of texts or emails asking you to "update your bank details." See how to spot IRS scams.

IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.