Starting with the 2025 filing season, the Internal Revenue Service (IRS) will no longer mail paper tax refund checks. This shift is part of a broader government effort to transition to electronic payments for tax returns and refunds, aiming to improve the speed, safety, and efficiency of the payment process.
Why the Change to Electronic Refunds?
The decision to stop issuing paper tax refund checks stems from concerns about the risks and inefficiencies associated with physical mail.
Paper checks can be delayed, lost, or stolen, and the process of printing and mailing millions of checks each year comes at a high cost. As a result, the IRS has moved towards a fully digital refund system, which offers several advantages:
Faster Refunds: Taxpayers who file electronically and choose direct deposit can receive their refunds in just a few days, compared to the weeks-long wait for paper check processing.
Greater Security: Direct deposit eliminates the risk of checks being lost or stolen in the mail.
Cost Savings: The transition to electronic payments is expected to save the government and taxpayers about $1 billion over the next 10 years.
How to Switch to Electronic Refunds
If you’re used to receiving paper checks from the IRS, now is the time to transition to electronic filing and direct deposit. To make this shift:
- File Electronically: When preparing your tax return, choose the electronic filing option. This can be done through IRS Free File if you qualify or with tax software approved by the IRS.
- Select Direct Deposit: On your tax return, select direct deposit as your preferred method for receiving your refund. This ensures your refund is deposited directly into your bank account, speeding up the process and providing greater security.
While filing electronically may be second nature for many, some individuals, particularly elderly taxpayers or those without reliable internet access, may face challenges with the new system. For these taxpayers, the IRS is offering outreach programs and assistance to ensure a smooth transition.
IRS Free Tools and Support for Taxpayers
The IRS provides a range of free tools to make filing taxes easier and more secure:
IRS Free File: If you qualify, this IRS-approved software allows you to file your taxes electronically for free.
Refund Tracking Tools: Taxpayers can track the status of their refunds online, reducing uncertainty and helping them stay informed about their refund process.
What This Means for You
The elimination of paper checks will impact those who continue to file paper returns and request checks. The IRS has made it clear that filing electronically and choosing direct deposit will make receiving your refund faster, safer, and more efficient.
For those struggling with the transition, help is available, and the government is working to ensure that all taxpayers can adjust to the digital system.
