The Internal Revenue Service (IRS), in conjunction with the US Department of the Treasury, has declared that individual taxpayer paper tax refund checks will be discontinued by 30 September 2025.  

The decision is in line with the stipulations of Executive Order 14247, and marks the first step towards electronic payments adoption, the statement said.  

Before the commencement of the 2026 filing season, the IRS will issue guidelines pertaining to tax returns for the year 2025.  

Until such guidance is provided, taxpayers are expected to continue utilising the existing forms and procedures, including for the 2024 tax returns that are filed on an extension before 31 December 2025. 

In a statement, the IRS highlighted the electronic payments’ role in reducing the risk of loss, theft, alteration, or delay.  

In addition, electronic refunds will provide taxpayers with faster access to their funds, usually within 21 days when filed electronically with direct deposit, assuming that there are no complications with the tax return.  

Mailed refunds, on the other hand, may take upwards of six weeks to arrive. 

While the filing process remains unchanged, taxpayers are being encouraged to prepare for the transition by ensuring their banking details are current or by considering the establishment of a free or low-cost banking account. 

Prepaid debit cards and digital wallets will be made available as alternatives for those without traditional banking access.  

The IRS reports that during the 2025 tax filing season, majority of tax refunds were processed electronically, with 93% of the 93.5 million refunds being issued via direct deposit. 

This policy change also pertains to payments made to the IRS.  

Taxpayers should continue to use the established payment options until new instructions are released.  

The IRS will provide further information and guidance for the filing of 2025 taxes ahead of the 2026 filing season.