Trump’s order shakes up IRS refunds — What taxpayers must know
The Internal Revenue Service (IRS) announced new measures that will directly affect how taxpayers receive their refunds, following an executive order by President Donald Trump.
In a press release issued Tuesday, the agency explained that policy changes for tax refunds in the United States will begin gradually on Sept. 30, 2025, “to the extent permitted by law.”
The IRS also stated it “will publish detailed guidance for 2025 tax returns before the 2026 filing season begins.”
IRS to phase out paper tax refund checks under Trump order
The IRS confirmed its decision to gradually eliminate “paper tax refund checks for individual taxpayers, beginning on Sept. 30, 2025.”
According to the agency, the measure is required under Trump’s Executive Order 14247, “Modernization of Payments To and From U.S. Bank Accounts.”
As for payments to the IRS, the agency said taxpayers should “continue to use existing payment options until further notice.”
The IRS added that it will provide “additional guidance and information for filing 2025 taxes prior to the 2026 filing season.”
The IRS noted that most individual taxpayers already receive their refunds via direct deposit.
Read more: Social Security will stop issuing paper checks in October. Here’s what to know
From paper to digital: IRS begins nationwide transition to electronic tax refunds
For the IRS, this policy change represents the first step in a broader transition to electronic payments.
According to agency data, during the most recent tax filing season the IRS issued more than 93.5 million tax refunds to individual income tax filers. About 93% of those —nearly 87 million— were issued through direct deposit, while only 7% were sent by paper check.
The IRS stressed that the change is designed to improve efficiency and safety: “Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.”
Electronic refunds also speed up access for taxpayers, with payments typically issued in less than 21 days if filing electronically and choosing direct deposit, compared with six weeks or more for mailed checks.
Additionally, the agency pointed out that electronic payments are more cost-effective: “Electronic payments are more efficient and cost less than paper.”
IRS refund options for unbanked taxpayers: debit cards, digital wallets, exceptions
For taxpayers who lack access to traditional bank accounts, the IRS said options such as prepaid debit cards, digital wallets, or limited exceptions will be available.
The agency also encouraged taxpayers to prepare in advance.
Beyond the IRS: Trump’s executive order pushes broader federal payment reforms
This year, the IRS also reported a surge in questionable refund claims fueled by misleading social media posts and fraudulent practices.
The agency is not the only federal office rolling out changes under the current administration.
In August, in response to the same executive order, U.S. Citizenship and Immigration Services (USCIS) introduced a new form allowing immigration fees to be paid through direct debit from U.S. bank accounts.
