The IRS has just announced that paper tax refund checks for individual taxpayers will be phased out beginning September 30, 2025. This move is part of a broader federal initiative to modernize payments. After this date, refunds will be delivered electronically—primarily via direct deposit—though limited exceptions may apply for taxpayers without access to traditional banking. Meanwhile, the IRS has suspended the mandatory electronic payment requirement for payments made to the IRS.

What This Means For You:

• Refunds: If you typically receive a paper check for your tax refund, you will need to ensure the IRS has your direct deposit information on file for future filings.
• Payments: This change does not affect how you make payments to the IRS at this time. You should continue using existing payment methods for 2025 4th Quarter estimated payments and any extended 2024 return payments as you have in the past.

The IRS will issue additional guidance on refunds and payments for 2025 tax returns before the 2026 filing season begins.

We are monitoring this story closely and will keep you updated as new information becomes available. If you have questions or concerns about this transition, please contact your emc advisor.