Key Takeaways
- Paper refund checks are history. As of September 30, 2025, the IRS began phasing out paper refund checks in favor of electronic payments, making refunds faster, safer, and more reliable.
- Taxpayers should act now. Double-check your direct deposit details through your IRS Online Account or tax return to avoid refund delays and help family members who still rely on mailed checks make the transition.
- Digital is the new default. With paper payments on their way out, electronic options like IRS Direct Pay and EFTPS will soon become standard for both individuals and small businesses across Connecticut’s Shoreline.
If you’ve been getting your tax refund by mail, those days are officially coming to an end. As part of a government-wide modernization effort, the IRS began phasing out paper refund checks on September 30, 2025. From now on, all refunds will be sent electronically directly to your bank account or other approved electronic method.
This is a significant step toward faster, more secure tax payments, but it also means individuals and business owners need to ensure their information is ready for the digital transition.
Why the IRS Made the Change
Paper checks have been around for decades, but that doesn’t make them the safest or most efficient option. They’re costly to process, slow to arrive, and vulnerable to theft. Each year, thousands of paper refunds are delayed, lost, or intercepted through mail fraud. Electronic payments, by contrast, arrive in days instead of weeks and include built-in safeguards against tampering or delivery errors.
This move aligns the IRS with how most other federal agencies, including the Social Security Administration, already process payments. It’s all part of a broader push to improve efficiency and reduce administrative costs across the board.
What You Need to Do Now
Whether you’re an individual taxpayer or managing a small business, here’s how to make sure you’re prepared:
- Check your IRS Online Account. Confirm that your direct deposit details (bank routing and account numbers) are current. You can log in or create an account at irs.gov.
- Update your information on your next tax return. If you usually get a paper refund, include your direct deposit details this year so there’s no delay.
- Get ahead on electronic payments. Paper check payments to the IRS are expected to phase out next, so familiarize yourself now with options like IRS Direct Pay or EFTPS (the Electronic Federal Tax Payment System).
- Help family members prepare. Older relatives who still rely on paper checks may need extra time to set up electronic payment options.
What This Means for Connecticut Taxpayers
For most people, this change will simplify things. But for those without bank accounts or who prefer traditional methods, the adjustment may take time. A few limited exceptions will remain for individuals with special circumstances, but electronic delivery will soon be the standard.
If you’re unsure what to do next or want to double-check your setup, our team is happy to help walk you through the process. We’ve already assisted many clients across the Shoreline area with setting up their IRS online accounts and understanding how these changes affect their personal or business taxes.
The paper refund check is officially a thing of the past, but that’s not a bad thing. The shift to electronic payments means faster refunds, fewer errors, and better protection for your money.
At Bailey Scarano, we’re here to make sure you stay ahead of every tax change so you can focus on what really matters: running your business and enjoying the rewards of your hard work.