IRS Is Breaking Up With Paper Checks – Here’s What’s Coming

Paper is Out – Digital is In

Big news, tax nerds: the IRS is officially beginning the phase out of paper checks, starting with refund checks in your mailbox. Thanks to a March 2025 executive order, federal agencies are moving towards a more digital-first future.

So what does this mean for you and your clients? Let’s nerd out.

IRS UPDATE March 2026

• Latest News From The IRS: Beginning September 30, 2025, the IRS started phasing out paper tax refund checks, to the extent permitted by law.

• The main change is the gradual shift away from paper tax refund checks; taxpayers will still file returns as usual, but refunds are moving toward electronic delivery methods
• For Making Payments To The IRS: Electronic options are being expanded, but the current forms and procedures remain in place “until further notice.”
• For payments to the IRS (such as paying taxes owed), there is no specific date announced for when checks will no longer be accepted.
• This means that paper checks can still be used, like in previous years, with no set date for when this option will be phased out.

• More Updates Coming: The IRS will provide further guidance for 2025 tax filings before the 2026 tax season. Given possible delays, taxpayers are encouraged to use electronic payment methods to avoid them.

New & Improved Digital Goodies

• IRS Online Accounts: Check balances, make payments, track history, and manage plans all in one dashboard.

• Better Online Payment Agreements: More people can now set up long-term payment plans online (balances up to $50k) with instant approval.

• Cash Still Counts (Sort Of): Retail partners will take IRS payments in cash, but there are daily caps and small fees.

What Clients Should Do Now

1. Set Up Direct Deposit for refunds—faster and safer.

2. Stop Writing Checks and pick your digital weapon of choice.

3. Open an IRS Online Account to manage everything in one place.

More to come as we learn….