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March 26, 2026 • 1:20 AM ET
Under Executive Order 14247, the U.S. Treasury began phasing out paper checks for federal payments starting September 30, 2025. Taxpayers with unclaimed 2022 refunds must provide bank account information before the April 15, 2026 deadline to receive their refund electronically. Source: whitehouse.gov/executive-orders.
The Internal Revenue Service is officially ending the era of paper. Thousands of Americans are currently filing for old 2022 tax refunds. Many of these taxpayers expect a physical check in their mailbox. However, a major regulatory shift has changed the rules. This transition is known as the digital phase of federal payments.
The digital phase aims to eliminate the risks of mail theft and fraud. President Trump signed Executive Order 14247 last year to speed up this process. This order tells the Treasury to stop printing millions of paper checks. The government now prefers sending money directly to your bank account.
The End of Paper Checks
This shift started on September 30, 2025, for most federal agencies. The IRS is now enforcing these rules for the April 15 deadline. If you do not provide a bank account, your money may stay in a hold. This federal money movement update requires a digital-first approach for all taxpayers.
Many seniors and low-income households still rely on paper. However, the new IRS rules make paper checks the last resort. If the IRS cannot process a direct deposit, it will attempt to issue a paper check as a backup, though the new EO guidelines make this a slower process. If your refund is delayed, check your IRS online account at IRS.gov/account for your current refund status.
Why Your Refund is Frozen
The IRS is using this Digital Phase to protect $1.2 billion in unclaimed funds. If your direct deposit fails, the IRS status bar might disappear. This happens because the system is waiting for you to verify your identity via ID.me.
This new settlement window is much longer than previous years. In the past, a rejected deposit meant a check arrived in two weeks. Now, a refund approved but not paid status means a manual review is starting. This review ensures the money goes to the correct person.
How to Secure Your Payout
Taxpayers should act fast to avoid long wait times. First, ensure your bank account information is 100% accurate. Even a small error can lead to a refund sent but no deposit alert. The IRS suggests using a modern bank that supports the latest National System standards.
If you already filed and see a delay, check your IRS transcript. Look for Code 846 to see if a date is set. If you see a freeze code, you must complete the identity steps immediately. Moving to a digital wallet or a low-cost bank can help you bypass these paper check hurdles.
The digital phase is a permanent change to how the Treasury operates. While the shift is difficult for some, it reduces the chance of your refund being stolen. Embracing this digital phase is the only way to ensure your money arrives safely before the deadline.
Editorial Note: Investozora is an independent news publication. This content is for informational purposes only. For specific guidance, please visit IRS.gov.
