IRS Moves Toward All-Electronic Refunds: What you need to know

The federal government is eliminating paper checks in favor of electronic payments, though most taxpayers won’t be affected since 93% already use direct deposit. An executive order requires federal agencies to transition to electronic funds transfer, and the IRS began phasing out paper refund checks for individuals on September 30, 2025. Taxpayers who file without banking information may face delays and additional steps, and while alternatives exist for those without bank accounts, they require advance setup and aren’t all accepted.

electronic funds transfer