In the 2026 tax season, the Internal Revenue Service (IRS) will drastically cut down on the issuance of paper checks for tax refunds, shifting its focus towards electronic payments. This comes in response to an executive order signed by former President Donald Trump that aims to modernize federal payment processes. Most refunds are expected to be processed through direct deposit and secure electronic methods, with limited exceptions for certain circumstances.

The new directive not only reflects a move towards efficiency but also highlights the federal government's commitment to reducing paper usage and streamlining operations. By adhering to Executive Order 14247, issued on March 25, 2025, the IRS is aligning itself with a broader trend seen across various government agencies that have been encouraged to adopt electronic payment systems.

This transition is anticipated to affect millions of taxpayers, particularly those who have relied on receiving paper checks. While the shift emphasizes the advantages of electronic payments, such as faster processing times and enhanced security, it also raises concerns for individuals who may not have bank accounts or access to electronic payment methods. The IRS's efforts to promote these changes illustrates the ongoing evolution of financial transactions within the government sector, moving towards an increasingly digital future.