IRS Is Phasing Out Paper Tax Refund Checks: Direct Deposit and Waivers

The IRS is phasing out paper tax refund checks. Executive Order 14247 directs the Treasury Department to stop issuing paper checks to the extent permitted by law after September 30, 2025, which makes direct deposit the default for federal tax refunds beginning with the 2026 filing season. Paper checks haven’t disappeared entirely, but if you file without banking information on your return, expect a delay of at least six weeks before the IRS falls back to mailing one.1Internal Revenue Service. Questions and Answers About Executive Order 14247

What the Executive Order Actually Changed

For the 2026 filing season, the IRS expects direct deposit information on every return. If you e-file or mail a return without it, the IRS holds the refund and sends a notice asking you to provide account details electronically.1Internal Revenue Service. Questions and Answers About Executive Order 14247 Ignore that notice, and the IRS will eventually release the refund as a paper check, but only after a six-week wait on top of normal processing.2Taxpayer Advocate Service. Direct Deposit Changes for 2026 Could Affect How and When You Get Your Refund

The reason behind the shift is straightforward. In tax year 2023, roughly 154,000 taxpayers filed Form 3911 to report a missing or stolen refund check, replacement checks took an average of 51 days to arrive, and about 9,200 of those replacements were themselves confirmed as stolen.3Taxpayer Advocate Service. What Taxpayers Should Do When Their Refund Is Stolen Electronically filed returns with direct deposit are typically processed within 21 days, compared to six or more weeks for paper returns with mailed checks.4Internal Revenue Service. Refunds

When Paper Checks Still Get Mailed

The order preserves exceptions for cases where no electronic alternative is available, and the IRS has said a limited number of paper checks will keep going out under those circumstances.1Internal Revenue Service. Questions and Answers About Executive Order 14247

One trigger catches people off guard. The IRS limits direct deposits to three refunds per bank account or prepaid debit card. Any fourth refund routed to the same account automatically converts to a paper check.5Internal Revenue Service. Direct Deposit Limits This tends to hit households where several family members share an account, or years when amended returns generate extra deposits.

Taxpayers living abroad face a separate layer of rules. Federal law lets the Treasury Secretary block checks to foreign countries when postal, transportation, or banking conditions don’t reasonably ensure the recipient can receive and cash them for full value.6Office of the Law Revision Counsel. 31 US Code 3329 – Withholding Checks To Be Sent to Foreign Countries Cuba and North Korea are permanently barred; other countries can be added.

How to Set Up Direct Deposit on Your Return

You need two numbers, both printed at the bottom of a standard check: the nine-digit routing transit number that identifies your bank or credit union, and your account number. On Form 1040, these go on lines 35b through 35d, along with whether the account is checking or savings.

To split your refund across two or three accounts, attach Form 8888. Each deposit must be at least $1, and you can direct portions to checking, savings, IRAs, health savings accounts, or Series I savings bonds in $50 increments up to $5,000.7Internal Revenue Service. Form 8888 – Allocation of Refund8Internal Revenue Service. Use Your Refund to Buy Savings Bonds

Verify both numbers before you file. The IRS cannot accept updated banking information after a return is filed, so a typo turns into a weeks-long recovery problem.9Internal Revenue Service. The Benefits of Having a Tax Refund Direct Deposited

Options if You Don’t Have a Bank Account

Roughly 5.6 million U.S. households are unbanked. The IRS accepts several alternatives so long as you can supply routing and account numbers at filing:

  • Reloadable prepaid debit cards. Many carry routing and account numbers that accept IRS deposits. Confirm with the issuer, since those numbers usually differ from the card number on the front.
  • Mobile payment apps that provide routing and account numbers you can enter on a return. Check with the provider before filing.
  • A low- or no-fee bank or credit union account. The FDIC and the National Credit Union Administration both operate locator tools, and some accounts can be opened online.

All three require the account information at the time of filing.10Internal Revenue Service. Tell IRS to Direct Deposit Your Refund to One, Two, or Three Accounts Without them, the paper-check fallback still exists, but the six-week hold applies.

When Direct Deposit Goes Wrong

A wrong routing or account number can take months to sort out, and the IRS accepts no responsibility for data-entry errors.11Internal Revenue Service. Refund Inquiries

If the bank rejects the deposit because the account doesn’t exist, the funds go back to the IRS. The agency will typically freeze the returned deposit rather than automatically cutting a check, so you’ll need to contact the IRS to move it forward.12Taxpayer Advocate Service. Direct Deposit Refunds and Refund Offsets

The harder scenario is when the numbers happen to match a real account belonging to someone else. In that case, you have to work directly with the financial institution to recover the funds. The IRS cannot force the bank to return the money, and if the bank refuses, the dispute becomes a civil matter between you, the bank, and whoever received the deposit.11Internal Revenue Service. Refund Inquiries

For any missing deposit, wait at least five calendar days from the issue date, then file Form 3911 to start a trace. Banks have up to 90 days to respond, and full resolution can run 120 days.

Waivers and Exemptions From Electronic Filing

Two pathways let you file on paper, though neither guarantees a paper refund check in return:

  • Religious exemption. If the required technology conflicts with sincerely held religious beliefs, you’re automatically exempt from e-filing mandates, with no advance IRS approval needed. On most returns, you write “Religious Exemption” in bold at the top of page one. For information returns like W-2s and 1099s, submit Form 8508.13Internal Revenue Service. Topic No 803, Electronic Filing Waivers or Exemptions and Filing Extensions
  • Hardship waiver. If electronic filing costs more than paper filing, you can request a waiver on Form 8508 with two current third-party cost estimates. A first waiver for any given form is automatic; later requests require a written justification such as lack of internet access.14Internal Revenue Service. Form 8508 – Application for a Waiver from Electronic Filing of Information Returns

Under the current framework, the IRS may still contact you about setting up direct deposit regardless of how you filed. Filing on paper and getting paid on paper are two separate questions.

Tracking Your Refund

After filing, use the “Where’s My Refund?” tool on irs.gov or the IRS2Go mobile app to check status from receipt through approval and deposit.4Internal Revenue Service. Refunds E-filed returns with direct deposit generally clear in about three weeks. Paper returns take six weeks or more from the day the IRS receives them, and any deposit failure adds more time on top.15Internal Revenue Service. Processing Status for Tax Forms Accurate banking details and an active IRS Online Account are the two best defenses against delay in a system that no longer has much patience for paper.