The IRS is updating how refunds and payments are handled starting with 2025 tax returns (filed in 2026).
- The IRS is moving toward electronic refunds in most cases and strongly encourages direct deposit.
- Providing your bank account or eligible prepaid debit card information is the fastest and most secure way to receive your refund.
- If you do not provide bank information, your refund may be delayed and could eventually be issued by paper check.
- In limited cases, exceptions to electronic refunds are available (for example, if you are unbanked or have a qualifying hardship).
- The IRS is also encouraging electronic tax payments, which can help ensure payments are applied correctly and on time.