We want to bring an important update to your attention regarding a significant change the IRS will be implementing starting with the 2025 tax year.
In line with Executive Order 14247, the IRS is moving away from paper checks, and most tax refunds will be issued electronically.
Here’s what you need to know:
1. Transition to Electronic Refunds
Starting September 30, 2025, the IRS will no longer issue paper checks for tax refunds unless certain exceptions apply.
Refunds can be deposited:
- Into a checking, savings, or retirement account
- Onto a prepaid debit card
- Onto a mobile app, provided there is a routing and account number to reference (e.g. IRS2Go, Cash App, Venmo, PayPal)
If direct deposit information is not provided, a paper check will be sent after six weeks.
2. What You Need to Do
For 2025 tax returns, you will be highly encouraged to provide your direct deposit information. You will still be able to file your tax return without the direct deposit information, but you will receive a letter from the IRS asking that you update your banking information with them. If you don’t, the IRS will send a paper check after a delay.
If you do not have a traditional bank account, live abroad, or have religious objections to banking, you may be eligible for an exception.
Additionally, if desired, you can have the refund split up into up to 3 different accounts.
3. Paying Taxes Electronically
The IRS is also taking steps to require that taxpayers make all payments to the IRS electronically. However, it is anticipated that the electronic payments requirement will not occur until 2027 or later. Starting in 2026, all taxpayers will be strongly encouraged to pay taxes electronically. Here are some options:
- Electronic Funds Withdrawal
- Direct bank transfers via IRS Direct Pay (free and secure)
- Debit/credit cards or digital wallets (processing fees may apply)
- IRS online accounts and the Electronic Federal Tax Payment System (EFTPS) are also available.
4. Preparing for the Change
Now is the time to prepare. Review and update your direct deposit information with your tax manager for e-filing.
Share this update with friends, family, and colleagues to ensure they’re also ready for the change.
If you need help setting up direct deposit or have any questions about the transition, we’re here to assist you!
We’ll continue to monitor updates from the IRS and provide guidance as needed.
