According to the IRS, during the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit.
The U.S. Department of the Treasury wants this transition to fully electronic federal payments to continue. To hurry it along, the Internal Revenue Service (IRS) is phasing out paper tax refund checks for individual taxpayers for the 2026 federal tax filing season.
Why is the IRS making this change?
The move towards electronic payments is designed to protect taxpayers from the possibility of a paper refund check being lost, stolen, altered, delayed, or returned to the IRS as undeliverable. Electronic refunds are also more cost efficient and faster than nonelectronic payments, which can take six weeks or longer to process.
What does this mean for taxpayers?
This initiative only affects tax refunds.
If you still prefer to mail your 2025-tax-year returns via US mail, you can still do so.
However, once the “e-refund” policy is finalized, you’ll need to choose a method of delivery.
Most people will choose to have the funds direct deposited into their bank account. To authorize this, they’ll need to enter their banking information, i.e., routing number and account number, on their tax returns.
Taxpayers who don’t want refunds deposited into their bank account will be able to choose other options, such as prepaid debit cards or deposits to a digital wallet.
What if you owe the IRS money?
For now, you can still make payments by check if you want to, although the IRS strongly encourages individuals and businesses to use electronic payment options, since they are easier, faster, and more secure.
For more information on the IRS transition towards electronic payments and the methods you can use, visit irs.gov.
This material has been provided for general informational purposes only. Canby Financial Advisors and Broadridge Advisor Solutions do not offer tax advice. We recommend you consult a tax professional on any tax-related issues. Advisory services offered through Canby Financial Advisors, LLC, an Investment Adviser registered with the U.S. Securities & Exchange Commission. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or ability.
Prepared by Broadridge Advisor Solutions and Canby Financial Advisors. © 2026 Broadridge Financial Services, Inc. and Canby Financial Advisors, LLC.