January 20, 2026
IRS Moves Toward All-Electronic Refunds: What You Need to Know
Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions, and will require taxpayers to receive refunds electronically.
Why the Change?
Paper checks cost more, create security risks, and take much longer to process. In addition, the Trump administration directed all federal agencies to eliminate paper check payments.
What Stays the Same?
The IRS has not changed the process for filing your tax return. You will continue to file exactly as you do now.
How to Receive Your Refund
The fastest and most reliable way to receive your refund is through direct deposit into your bank account. Ninety-three percent of taxpayers already use direct deposit, and this change will not affect them.
If you currently receive refund checks, we’ll need to switch to direct deposit when we file your 2025 return. We’ll simply enter your bank’s routing and account numbers on your tax return.
If you prefer not to use direct deposit, you can choose certain mobile apps or prepaid debit cards that provide a routing and account number.
The IRS will still issue a paper check if you request a waiver because you lack access to banking services or electronic payment systems. Keep in mind that paper checks take at least six weeks to process, while electronic refunds typically take about 21 days.
If You Need a Bank Account
You can open an account online through several resources:
- The FDIC’s GetBanked website
- The National Credit Union Administration’s Credit Union Locator
- The Veterans Benefits Banking Program (for veterans only)
Paying Taxes
For now, the IRS will still accept tax payments by check. However, electronic payments remain the faster and more reliable option. To review all electronic payment methods, visit the IRS Make a payment web page.
Final Note This is yet another great reason to avoid receiving large refunds from the IRS.
A refund does not mean the IRS is giving you free money. In most cases, it simply means you overpaid your taxes during the year and are now getting your own money back. In other words, you gave the IRS an interest-free loan for months.
That’s one of the most common misconceptions among average taxpayers.
And you don’t want to be the average taxpayer.
The goal isn’t to get a refund—the goal is to pay just enough tax when we file your return to avoid penalties. When that happens, you keep control of your cash all year long, instead of letting the IRS hold it for you.
In short, REFUND = You lose, and the IRS wins! Don’t be a loser 🙂
This is exactly why proactive tax planning throughout the year matters. It allows us to anticipate your tax liability before filing season—so there are no surprises and no unnecessary overpayments.
Just as important is having clean, accurate, and up-to-date accounting. This doesn’t mean scrambling in December to get your books in order. It means knowing, month by month, how your business is actually performing.
After all, how can you make smart financial decisions if you don’t know how much money your business is making?
Consistent tax planning + real-time financial clarity = winning with your taxes and your money.
If you have any questions, please feel free to reach out to our team!
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