What This Means for Your Tax Refunds and Payments

The federal government is continuing its move away from paper checks in favor of electronic payments. This change affects how tax refunds are issued and how certain government payments are received.

While this transition is designed to improve speed and security, it also means taxpayers need to take a few important steps to ensure their refunds and payments are delivered safely and without delay.

Our goal is to help you understand what’s changing — and what you can do now to stay protected.

Why Paper Checks Are Being Eliminated

Paper checks are increasingly vulnerable to:

• Mail delays

• Lost or stolen checks

• Fraud and check washing

• Slower processing times

By shifting to electronic payments, the federal government is aiming to:

• Deliver refunds faster

• Reduce fraud and theft

• Improve overall payment security

For taxpayers, this means electronic delivery is becoming the standard, not the exception.

How Tax Refunds Will Be Issued Moving Forward

As paper checks are phased out, most federal tax refunds will be issued through:

• Direct deposit to a bank account

• Direct deposit to a prepaid debit card

• Other approved electronic payment methods

If no electronic option is on file, refunds may be delayed while additional verification steps are taken.

What You Can Do to Protect Your Refund

To avoid delays or issues, we strongly recommend the following:

✔ Use Direct Deposit Whenever Possible

Direct deposit is:

• Faster

• More secure

• Less likely to be intercepted or delayed

Make sure the bank account information you provide is accurate and current.

✔ Keep Your Banking Information Updated

If you’ve changed banks, opened a new account, or closed an old one, let us know before your return is filed. Incorrect information can delay your refund or cause it to be rejected.

✔ Be Cautious With Refund Anticipation Offers

Some third-party products route refunds through temporary accounts. While they may seem convenient, they can add complexity and delay if issues arise.

We’ll help you understand your options so you can make an informed decision.

What About Making Payments to the IRS?

Just as refunds are moving away from paper checks, tax payments are also shifting to electronic methods, including:

• IRS Direct Pay (from your bank account)

• Electronic Federal Tax Payment System (EFTPS)

• Approved payment processors

Electronic payments provide confirmation, tracking, and peace of mind — something paper checks simply can’t offer anymore.

Why This Change Matters

The elimination of paper checks means:

• Less room for error

• Fewer lost payments

• More responsibility to keep your information current

With the right preparation, these changes can actually make the tax process smoother and more secure — but only if they’re handled correctly.

How Tax Pros Helps

We work with clients to:

• Verify direct deposit information before filing

• Ensure refunds are routed safely and correctly

• Help set up secure electronic payment options

• Reduce the risk of delays, fraud, or returned funds

This is part of the behind-the-scenes work we do to protect your return — not just during tax season, but year-round.

Questions About Refunds or Payments?

If you’re unsure how these changes affect your situation, we’re happy to walk through it with you.

A quick conversation now can prevent problems later.