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According to a news release issued by the department last week, the Internal Revenue Service has stopped issuing paper tax refunds since this month.
On September 23, the agency said it would move to fully electronic federal payments in accordance with an executive order signed by President Donald Trump in March.
This change will take effect on September 30th. This is the same as the Social Security Administration begins to phase out paper checks in favor of e-benefit payments.
There’s everything you need to know about the changes.
Why is there a change happening?
The IRS said it is phased out paper checks to protect against financial fraud and inappropriate payments, increase efficiency, reduce costs and increase security in federal payments.
“Paper checks are more than 16 times more likely to be lost, stolen, altered or delayed than electronic payments,” the agency said. “Direct deposits also avoid the possibility that refund checks can be returned to the IRS as non-refundable.”
Are there any changes to the tax payment process?
No changes have been made to the process of filing tax returns, the agency said. Taxpayers must submit as usual. However, the delivery method for returns is electronic.
The agency said details will be available for filing the 2025 tax before the 2026 submission season.
How long does it take to transfer electronically?
The agency said electronic refunds are generally faster, as payments are issued within 21 days in most cases. Taxpayers must submit returns to a valid bank account to receive direct deposits.
Payments sent by mail typically take more than six weeks.
How to prepare for an electronic refund
Those who want to receive an e-tax refund must provide valid bank account information to the IRS, such as routing and account number.
If an individual does not have a valid bank account, they must be opened through a bank or credit union. The IRS has resources to find financial institutions at fdic.gov/getbanked and mycreditunion.gov. Additionally, if you have a routing and an account number, it may be possible to receive payments via your mobile app provider or a prepaid debit card.
Taxpayers who do not have access to digital payment options can receive payment through alternatives sponsored by the Ministry of Finance, with details provided at a later date.
How about payment?
The method of submitting payments to the IRS has not changed so far. However, the agency said it plans to expand its electronic payment options for people to pay taxes.
“Until further notice, existing forms and procedures must be used to make payments to the IRS. To avoid delays, taxpayers must use existing electronic payment options,” the agency said.
To make payments to the IRS, individuals can use the IRS direct salary to pay directly from their bank account without charge. Set up an electronic federal tax payment system for payment of personal or business taxes. Explore debit/credit card payment options using IRS2GoApp. Or use a digital wallet.
Michelle Del Rey is a trending news reporter for USA Today. Contact her at mdelrey@usatoday.com
