No More Refund CHECKS

🏦 Major Change: No More Paper Checks from the Federal Government Starting September 30, 2025

Make Sure You’re Set Up for Electronic Payments

We want to make sure our clients are prepared for an important change that may affect how you receive government payments—including tax refunds.

On March 25, 2025, President Trump signed an Executive Order directing the U.S. Treasury to modernize how federal payments are handled. Beginning September 30, 2025, the federal government will stop issuing paper checks for nearly all types of disbursements.

💡 What This Means for You

Starting this fall, the following will be issued electronically only:

• Tax refunds
• Social Security benefits
• Veterans’ benefits
• Government vendor and contractor payments
• Federal grants, loans, and fee reimbursements

You will need to ensure you’re set up to receive electronic payments through one of the following:

• Direct deposit
• Debit or credit card transfers
• Digital wallets
• Real-time payment apps (e.g., FedNow, Zelle, etc.)

Likewise, any payments made to the federal government (e.g., taxes, fines, fees, or loans) must also be submitted electronically where allowed under current law.

🔒 Why This Change Is Being Made

The shift to electronic payments is intended to:

• Prevent fraud and theft: Paper checks are 16 times more likely to be lost, stolen, or altered.
• Improve security: Complaints of mail theft and check fraud have increased sharply in recent years.
• Reduce delays and lost payments: Digital payments are faster and more reliable.
• Save taxpayer money: In 2024 alone, it cost over $657 million to maintain the outdated infrastructure required for issuing paper checks.

✅ Exceptions Will Be Made

There are limited exemptions for:

• Individuals without access to banking or electronic payment methods
• Certain law enforcement or emergency payments
• Other special circumstances as defined by law

📌 What You Should Do Now

To avoid delays in future refunds or government payments:

• Set up or verify your direct deposit information with the IRS and other agencies you receive payments from.
• Update your bank info in your IRS Online Account if necessary.
• Avoid mailing paper checks to the IRS for tax payments—consider using IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS).

We are here to assist you in transitioning to this new system. If you have questions about how to update your payment information, set up direct deposit, or securely make tax payments online, please contact our office.

— The Numeric Strategies Team