IRS makes historic change to how it handles tax returns: What’s next

The Internal Revenue Service has long offered taxpayers the option of receiving their refunds by check by mail, or by direct deposit — but those days are officially over.

The IRS and the U.S. Treasury Department have officially started phasing out paper check refunds.

From now on, taxpayers can expect to receive their refunds via direct deposit or another mode of paperless payment.

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"This marks the first step of the broader transition to electronic payments," the IRS said in a statement .

"The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season begins," the agency said.

Taxpayers may continue using the existing forms and procedures for filing their taxes in the meantime, the IRS said.

The move was done with the intention of protecting taxpayers, speeding up refunds and cutting costs.

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"Most individual taxpayers already receive their refunds by direct deposit into their bank accounts," the agency wrote in the announcement.

"During the 2025 tax filing season , the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit."

Last filing season, only 7% of taxpayers were still opting to receive their returns via paper check.

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While the procedures for filing taxes will remain the same for the time being, refunds will start being delivered by direct deposit or other secure electronic methods.

For people who don't have access to bank accounts, options such as prepaid debit cards and digital wallets may make accessing their returns easier than before.

Taking action

Before the 2025 tax season kicks off, people who usually opt in for a paper-check return should start preparing for when they might receive an electronic refund.

The IRS encourages taxpayers to "make sure they know their banking information or consider opening a free or low-cost account" before tax season is underway.

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