NEWS / IRS to phase out paper check payments and refunds

The United States Internal Revenue Service (IRS) will no longer be issuing or accepting paper check payments. This policy change was instigated by Executive Order 14247, “Modernizing Payments to and From America’s Bank Account,” signed by US President Donald Trump. While the IRS stopped issuing paper check refunds on September 30, the agency is expected to continue accepting paper check payments until at least 2027.

According to the National Taxpayer Advocate, the IRS will begin implementing the Executive Order starting with the 2025 tax filing season between January 1 and April 15, 2026. Taxpayers will be required to pay or receive refunds via direct deposit unless they qualify for an exception. Exceptions will include religious beliefs, living abroad, and not having a bank account.

Direct deposit methods include direct transfers to checking, savings, and retirement accounts; transfers to prepaid debit cards; and mobile app transactions. Failure to provide direct deposit information will trigger the IRS to issue to a letter asking taxpayers to provide or update their banking information as well information on exceptions to the electronic payment requirement. The IRS will issue a paper check after 6 weeks to prevent interest from accruing.

If you need assistance with proving your US tax residency and getting your tax residency certificate (Form 6166) apostilled or authenticated for use abroad, feel free to contact us via e-mail at info@apostille.us or by phone at (212) 233-7061. You can also place an order on our website.