On September 30, 2025, the U.S. Treasury and IRS will stop issuing paper checks for most federal payments. This includes individual tax refunds and benefit payments like Social Security or Veteran Benefits. If you’re used to getting a paper check in the mail, this marks the end of an era.
For the vast majority of Americans, nothing will change. Tax filing will not be affected. The IRS has instructed taxpayers to “continue to file their returns as they normally would.” More than 90% of individual income filers already receive their tax refunds through direct deposit. But for the smaller group who waiting for payments in the mail, this deadline means it’s time to switch.
Why the Change?
The shift to electronic payments is grounded in multiple rationales:
- Security and fraud reduction: Paper checks are vulnerable to being lost, stolen, altered, or delayed, while eliminating the possibility that a check is returned to the IRS as undeliverable.
- Faster payments: Electronic refunds can be delivered more quickly. Taxpayers filing electronically can receive refunds in less than 21 days, assuming there are no issues with the return. This is a far departure from the 6 weeks or longer that a mailed check may take to arrive.
- Cost savings: The announcement from the IRS stressed the shift to digital methods will save the government unneeded costs incurred by maintaining the infrastructure for printing, mailing, and processing returns of undeliverable checks.
- Ordered digitization: The driving force behind the sudden change comes from Executive Order 14247, which directs the Treasury and other Federal agencies to transition to digital payments “to the extent permitted by law.”
What to Do If You’re Affected
If you still receive benefits or tax refunds by mail, don’t wait until the deadline. Set up direct deposit with your bank and whichever Federal agency pays your benefits. If you don’t have access to a traditional bank, alternative options of prepaid debit cards, digital wallets or limited exceptions are available.
Be cautious of scams during this period, if someone reaches out claiming they need your personal information to “help” you switch payment methods, verify their information before sharing anything.
The Bigger Picture: The Treasury’s Push to Modernize
Digital payments are part of a much broader effort by the Treasury to modernize the IRS. An announcement on Sept. 22, 2025, reported “significant progress” in its series of IT upgrades designed to bring its financial systems into the 21st century. Upgrades include improving taxpayer services usability, enhancing cybersecurity practices, and increasing efficiencies for filing season operations with better data processing. The Treasury has entered into a series of Blanket Purchase Agreements (BPAs) with technology providers to make it happen. Updates from the Treasury are to be provided as additional contracts and milestones occur.
Focus On What Matters, CBM Will Handle the Rest
As the IRS and Treasury roll out these changes, staying ahead of new rules and requirements is more important than ever. With CBM, our team keeps a close watch on federal tax developments, so you don’t have to. From monitoring regulations to managing tax filings and savings, our team takes care of the details. Reach out to us today, so you can focus on what matters most tomorrow.
