As part of a broader U.S. Department of the Treasury initiative to transition to fully electronic federal payments, the Internal Revenue Service (IRS) is phasing out paper tax refund checks for individual taxpayers for the 2026 federal tax filing season.1
Why is the IRS making this change?
The move towards electronic payments is designed to protect taxpayers from the possibility of a paper refund check being lost, stolen, altered, delayed, or returned to the IRS as undeliverable. Electronic refunds are also more cost efficient and faster than nonelectronic payments, which can take six weeks or longer to process.2
What does this mean for taxpayers?
No changes are being made to the process of filing a tax return. Taxpayers should continue to file their tax returns as they normally would, using one of the existing filing options. However, refund delivery will be shifting towards electronic payment methods. As a result, taxpayers should have all of their banking information (e.g., account and routing numbers) readily available when filing their returns.
While most tax refunds will be delivered by direct deposit or other secure electronic methods, there will still be alternative options available, such as prepaid debit cards or digital wallets, for those taxpayers who do not have access to a bank account.3
What if I owe the IRS money?
The IRS has stated that taxpayers should continue to use existing payment options until further notice but is strongly encouraging individuals and businesses to use electronic payment options, since they are easier, faster, and more secure. Further IRS guidance is expected soon.4
The IRS offers the following electronic payment options:
- IRS Direct Pay, which pays the IRS directly from your bank account without fees
- Electronic Federal Tax Payment System (EFTPS), a free system offered by the U.S. Department of the Treasury to pay your federal taxes
- IRS2Go, an IRS mobile app for easy and secure mobile payments
- Debit card, credit card, or digital wallet
For more information on the IRS transition towards electronic payments, visit irs.gov.
1-4) Internal Revenue Service, 2025
During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit.
Source: Internal Revenue Service, 2025
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