If you usually receive a refund check in the mail from the IRS, there’s a big change coming your way, and soon. Starting with 2025 tax returns, the IRS plans to move nearly all refunds to electronic delivery. That means no more paper checks unless you fall into a special category.

While this move is part of the IRS’s push to modernize the tax system, it’s important to understand how it could impact you, especially if you don’t currently use direct deposit or don’t have a bank account at all.

Let’s take a closer look at what’s changing, when it’s happening, and how you can stay ahead of the curve.

What’s Changing and When?

Here’s what you need to know about the IRS’s new refund process:

• The Switch Starts January 2026
  For the 2025 tax filing season, which begins in early 2026, the IRS will begin issuing electronic refunds only. If you normally receive a check by mail, you’ll need to update your return with your bank information or explore one of the new electronic options the IRS is working on.
• Businesses Are Affected Too
  If you’re a business owner, this change affects you as well. Most businesses still get paper checks, but that will change starting in 2026. New forms will ask for your banking details to enable direct deposit.
• No Bank Account? No Problem (Eventually)
  The IRS knows that not everyone uses traditional banks. That’s why they’re exploring other ways to deliver refunds, including reloadable debit cards and digital wallets. These options could become available as soon as 2026 and are expected to expand further by 2027.
• Special Cases Still Under Review
  If you’re an international taxpayer, going through bankruptcy, or filing an amended return, you may still receive a paper check for now. The IRS is working on digital options for these situations too.

Changes May Happen Mid-Year
Because this is a big change, the IRS may adjust its plans mid-2026. It’s important to stay informed so you’re not caught off guard.

What This Means for You

This change could make things faster and more secure, but only if you’re prepared. Here’s what to keep in mind:

• You May Need to Take Action If you don’t include your direct deposit information when you file, the IRS may hold your refund—possibly for weeks. Be sure to watch for notices and instructions from the IRS starting in 2026.
• Online IRS Accounts Are More Important Than Ever Setting up an IRS Individual Online Account now can make it easier to update your information, check your refund status, and avoid delays. We can help you get set up if you need guidance.
• Don’t Wait Until the Last Minute If you’re unsure about how to add your banking details or whether you qualify for an alternative refund option, talk to a tax resolution professional early. It’s better to be ready before tax season hits.

How We Can Help

At Fairbanks Fletcher Law, we help individuals and small business owners navigate IRS changes with confidence. Whether you need help setting up an online account, updating your tax return with your banking details, or just understanding your options, we’re here to make sure you’re not left behind.