The Internal Revenue Service announced Tuesday that paper tax refund checks for individual taxpayers will be phased out starting Sept. 30 in compliance with Executive Order 14247.

The move is the first step in a broader transition to electronic payments, which officials say will improve security, speed and efficiency.

“Paper checks are over 16 times more likely to be lost, stolen, altered or delayed than electronic payments,” the IRS said in a news release. “Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.”

Electronic refunds can reach taxpayers in less than 21 days if returns are filed electronically, direct deposit is selected and there are no issues with the return. In contrast, refunds mailed by check can take six weeks or longer.

Most individual taxpayers already receive refunds electronically. During the 2025 tax filing season, the IRS issued more than 93.5 million individual refunds, with 93% delivered by direct deposit. Only 7% of refunds went out as paper checks.

The change will not alter filing procedures. Taxpayers should continue using existing forms and filing methods, including those submitting 2024 returns on extension before Dec. 31, 2025. Refunds will generally be delivered by direct deposit or other secure electronic methods. For taxpayers without access to a bank account, options will include prepaid debit cards, digital wallets or limited exceptions. The IRS encouraged taxpayers to review their banking information or consider opening a free or low-cost account through resources such as FDIC: GetBanked or MyCreditUnion.gov.

Executive Order 14247 also applies to payments made to the IRS, but taxpayers should continue using existing payment options until further guidance is issued. The agency said it will provide updated guidance for 2025 tax returns before the 2026 filing season and will share information on IRS.gov and through outreach efforts nationwide.