Why the IRS Is Moving Away From Paper Checks (What Taxpayers Need to Know)

Why It Matters

Direct‑deposit refunds speed cash to taxpayers and cut IRS processing costs, preventing 6‑12‑week delays that strain personal finances and business liquidity.

Key Takeaways

• IRS mandates direct deposit for refunds, ending paper checks
• 830,000 taxpayers lacked deposit info, now face delays
• Paper checks add 6‑12 weeks to refund timeline
• Direct deposit info can be entered on electronic or paper returns
• Verify routing and account numbers to prevent processing setbacks

Summary

The video explains the IRS’s shift away from paper‑check refunds, driven by a 2022 executive order from the Trump administration that requires all tax refunds to be issued via direct deposit.

IRS data shows more than 830,000 filers this season omitted banking details, prompting the agency to send letters asking whether they will provide a routing and account number or wait for a check, which adds six to twelve weeks.

Tom Wheelwright highlights the IRS’s wording—“What do you want to do?”—and stresses that the routing and account fields are available on both e‑file and paper returns, making the change technically simple.

For taxpayers, entering direct‑deposit information eliminates costly delays and helps the Treasury reduce processing expenses, while businesses can expect faster cash flow from quicker refunds.

Original Description

Tax professionals are seeing a major shift in how refunds and payments are handled and it could impact how quickly you get your money.

In this video, we break down why the IRS is moving away from paper checks and what that means for taxpayers heading into the filing deadline.

Many taxpayers still expect a paper check in the mail, but changes in processing and payment systems are making electronic options the faster, and in some cases necessary, choice.

In this video, you’ll learn:

• Why paper checks are becoming less common

• What to expect if you don’t choose direct deposit

• How this shift could affect refund timing

• What taxpayers should do before filing

As Tax Day approaches, understanding how refunds are issued can help you avoid delays and confusion.

Learn more from the National Association of Tax Professionals (NATP):

https://hubs.li/Q0496JWz0