IRS phases out paper tax refund checks, urges direct deposit

The Internal Revenue Service said it is phasing out paper tax refund checks and urged taxpayers to use direct deposit to receive refunds quickly and securely.

The agency said direct deposit is the "safest and quickest way to receive your refund." It said the change is intended to defend against fraud and improper payments, increase efficiency, reduce costs and enhance security. The IRS warned that paper checks are more likely to be "lost, stolen, altered, or delayed." The announcement concluded with a directive for taxpayers to visit irs.gov/modernpayments for details.

Why it matters: Switching to electronic refunds reduces the risks the agency identified — such as loss or theft of mailed checks and delays in delivery — and can speed receipt for taxpayers. The IRS framed the change as an operational modernization intended to reduce improper payments and lower administrative costs.

What the IRS said: "Direct deposit is the safest and quickest way to receive your refund," the announcement said. The agency also said direct deposit "defends against fraud and improper payments" and that electronic payments "increase efficiency, reduce costs, and enhance security." The agency closed by directing taxpayers to its web page at irs.gov/modernpayments for instructions and next steps.

What officials did not say: The announcement did not specify a timeline for the phase-out, whether exceptions will be available, how taxpayers who currently receive checks will be transitioned, or whether alternate methods (such as prepaid cards) will be supported. Those details are listed as not specified in the accompanying clarifying details and may appear on the IRS web page referenced by the agency.

For more information: The IRS directed taxpayers to visit irs.gov/modernpayments for guidance and any updates on timing or exceptions.