IRS Is Killing Paper Refund Checks in 2026 — Here's What CPAs Need to Tell Clients Now

Paper refund checks are (mostly) gone.

If your clients are expecting a check in the mail this tax season, they need to hear from you before they find out the hard way.

The IRS phased out paper refund checks for individual taxpayers on September 30, 2025, under Executive Order 14247 — which directed the entire federal government to move payments to electronic systems. Social Security checks, tax refunds, veterans benefits — all going electronic.

This isn't a future proposal. It happened. And the IRS just released new FAQs making clear how permanent this is.

What Executive Order 14247 Actually Does

EO 14247 (signed in 2025) requires the U.S. Treasury to transition nearly all payments — incoming and outgoing — away from paper checks. The stated goals: reduce fraud, cut processing delays, and modernize the plumbing of how federal money moves.

The IRS began phasing out paper refund checks for individual filers in late 2025. The filing process itself hasn't changed — you still file the same way, claim the same deductions, get the same refund amount. Only the delivery method changed.

How Clients Will Get Their Refund Now

If a client isn't set up for direct deposit, here are their options:

• Direct deposit — still the gold standard. E-filers with direct deposit typically see refunds within 21 business days. No change there.

• Prepaid debit cards — the IRS has approved card providers for unbanked taxpayers. Watch out: some cards carry fees.

• Mobile payment apps — the IRS is expanding partnerships as the program rolls out.

For clients without bank accounts: the IRS says it's working with partners to help them open low- or no-cost accounts. That's in progress. Some of your clients may hit friction this filing season. Better to flag it now than after they've filed.

What About Payments TO the IRS?

For now, the IRS still accepts paper checks and money orders for taxes owed. But the direction is clear — electronic is becoming the default.

Current electronic options include:

• Direct Pay at irs.gov

• IRS Online Account

• Debit and credit cards

• Digital wallets

One important note: EFTPS enrollment for individuals ended October 17, 2025. If any of your clients were using that system, they need an alternative payment method now.

What's Coming in 2026

Starting this year, direct deposit will be added to most business return types. Business owners who've been waiting for refund checks are getting a new option — and will eventually lose the old one. Get your business clients set up with banking info on file now.

The IRS is also developing international payment partnerships for cross-border refunds and payments — relevant if you have any clients receiving refunds to foreign accounts.

The Action Items for CPAs

1. Update your intake process — are you collecting direct deposit information from every refund-eligible client? You should be. 2. Flag unbanked clients immediately — they need an alternative before they file, not after. 3. Retire "it'll come in the mail" from your vocabulary — it won't. Update your client communication templates. 4. Brief business clients on the coming direct deposit expansion.

The Bottom Line

The IRS paper check phase-out is another piece of a broader federal modernization push — the same wave that changed the USPS postmark rules and expanded electronic payment mandates across agencies. The system is changing whether clients are ready or not.

The ones who aren't prepared are going to call their CPA in a panic. Get ahead of it.