The IRS has announced a major change that will affect how you receive your tax refunds. In accordance with Executive Order 14247, "Modernizing Payments To and From America's Bank Account," the federal government started transitioning to fully electronic payments, with the phase-out of paper tax refund checks beginning September 30, 2025. This year’s tax refund will be electronic only.
Why This Change Matters to You
The shift to electronic payments serves critical purposes:
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Enhanced Security: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments
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Fraud Prevention: Electronic payments defend against financial fraud and improper payments
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Increased Efficiency: Direct deposit avoids the possibility that refund checks could be returned as undeliverable
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Cost Reduction: Electronic processing significantly reduces administrative costs
Your Tax Return Filing Process Stays the Same
Good news: No changes are being made to the tax return filing process itself. You'll continue to file as usual, but refund delivery methods are now electronic.
How to Receive Your Refund
Direct Deposit remains the fastest and most secure refund method, with payments issued in less than 21 days in most cases (compared to 6weeks or longer for mailed payments).
If you are already using direct deposit for your tax refunds, nothing changes for you.
To set up direct deposit:
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Provide valid bank account information (routing and account numbers) when filing your return
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Ensure your banking details are current and accurate
Don't have a bank account? Resources are available:
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FDIC.gov/GetBanked for traditional banking options
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MyCreditUnion.gov to locate credit unions
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Certain mobile apps and prepaid debit cards that provide routing and account numbers
Paper refund checks may be available for taxpayers without access to digital payment options via a waiver, but keep in mind that processing could take at least six weeks.
Electronic Payment Options for Taxes
The IRS continues expanding electronic payment options to make paying taxes easier, faster, and more secure:
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IRS Direct Pay: Pay directly from your bank account without fees. Click here for IRS Direct Pay Instructions
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Electronic Federal Tax Payment System (EFTPS): Comprehensive system for individual or business tax payments
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IRS2Go App: Mobile App for easy and secure payments
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Debit/credit cards and digital wallets: Available where supported
Until further notice, existing forms and procedures remain in place for tax payments, though electronic options are recommended to avoid delays.
Preparing for the Change
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Review your banking information to ensure accuracy
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Consider opening a bank account if you don't currently have one
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Update contact information with the IRS to receive important notices
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Explore electronic payment options for future tax payments
Stay Informed
The IRS has released a detailed Fact Sheet that provides additional details on both refunds and payments here: IRS Fact Sheet 2026-02.
As the IRS releases additional guidance and implementation details, we'll keep you updated through our communications and during your tax preparation appointments. Our goal is to ensure this transition enhances your refund experience through faster, more secure delivery.
Rodefer Moss provides specialized accounting, tax, assurance and consulting services to individuals and businesses across the United States, and locally through our offices in Knoxville and Nashville, Tennessee.