Starting September 2025, the IRS will no longer issue paper refund checks to individual taxpayers. Instead, refunds will be delivered electronically, with direct deposit as the standard method.
What This Means for You
- Electronic refunds only: Faster, more secure, and more reliable than paper checks.
- Direct deposit preferred: Ensure your bank details are up to date with the IRS.
- Alternative options:
- Set up an account with a financial provider such as Wise, to receive international transfers.
- Choose to apply your refund as a credit toward your following year’s tax account.
Why the Change?
This move is part of the IRS’s modernization efforts to streamline payments, reduce delays, and improve efficiency for taxpayers.
Action Checklist
- Confirm your bank details with the IRS to ensure direct deposit works smoothly.
- Consider setting up a Wise account if you need to receive international transfers.
- Decide whether to carry forward your refund as a credit to next year’s taxes.
- Keep records of your choice (bank details, Wise account setup, or credit election).
- Reach out to us if you’re unsure which option is best for your situation for expert advice.
