The IRS is ending paper refund checks, requiring direct deposit for faster refunds, affecting millions, especially the unbanked.

Under Executive Order 14247, the IRS is gradually eliminating paper tax refund checks nationwide, requiring the majority of taxpayers to use direct deposit in order to receive their refunds more quickly—usually within 21 days. As part of the 2025 "Modernizing Payments To and From America's Bank Account" initiative, this modification seeks to lower fraud and save $68 million a year. Critics caution that it disproportionately impacts the 6 million Americans without bank accounts, especially low-income, Black, Hispanic, and disabled people who might have to pay more for prepaid cards or refund anticipation loans. The Treasury Department's staffing and funding losses make it difficult to implement the IRS's limited exceptions and encouragement to open bank accounts or use digital wallets. The One Big Beautiful Bill Act's new tax regulations, which include a $2,200 Child Tax Credit and increased standard deductions, went into effect in 2025. The 2026 filing season is now open.