IRS Paper check phase-out: what taxpayers need to know about refunds and1040-v vouchers

Staff
Aug 29
3 min read

Updated: Sep 9

On August 14, 2025, the U.S. Department of the Treasury announced that the federal government will phase out paper checks for disbursements and refunds beginning September 30, 2025 (U.S. Department of the Treasury, 2025). This means taxpayers will no longer receive IRS refund checks in the mail and must instead opt for direct deposit or other electronic transfer methods for refunds and payments from US Treasury to individuals.

What About IRS Paper Check Payments and the 1040-V Voucher?

While the Treasury’s announcement is clear regarding refunds and other outbound government payments, there is confusion online about how this may affect inbound taxpayer payments, such as checks mailed with Form 1040-V vouchers. (from taxpayers to the IRS)

As of today, 8/29/2025, the IRS has not issued any official guidance eliminating the use of paper checks with 1040-V voucher payments.
Many third-party websites and forums are speculating that paper voucher payments will end in 2026, but these claims are not backed by IRS press releases or Treasury publications.
Until the IRS releases official instructions, taxpayers should continue to make their quarterly and year-end payments exactly as directed by their tax professional.

Failing to follow existing payment procedures could result in late payment penalties or interest, even if future changes are announced.

Why Close Attention Is Needed

The Treasury’s broader shift toward electronic payments highlights the need for taxpayers and preparers to closely monitor IRS statements and professional advisories. It is crucial that individuals:

Stay informed by checking IRS updates and reputable news sources.
Consult their accounting or tax professional before making changes to how they submit payments.
Avoid relying on unverified third-party claims that may cause confusion.

Commentary: The Risks of Eliminating Voucher Payments

It is one thing for the Treasury to stop issuing paper refund checks, which already presents challenges for some Americans. But if the IRS were to eliminate paper voucher payments for individual taxpayers, the consequences could be more serious:

Many citizens—especially elderly taxpayers—still rely heavily on traditional paper banking.
A sudden shift to digital-only tax payments could disadvantage those without easy access to online systems, leading to accidental non-compliance.
Such a change may conflict with the IRS Taxpayer Bill of Rights, which emphasizes the right to clear communication and fair treatment.

A more balanced approach could involve a structured phase-in period or multiple payment options to ensure that all taxpayers—particularly seniors—can comply without undue hardship.

How We Can Help

At DiSalvo Tax & Accounting, we understand how rapidly federal and state tax rules can evolve. Our team monitors IRS updates closely so our clients don’t have to. If changes are made to how payments can be submitted, we’ll guide you through the process step by step—ensuring your payments are made correctly and on time. So, if you are in Brevard County, Vero Beach, or anywhere in Florida we at DiSalvo Tax and Accounting are ready to help with your tax questions. call us at, 772-770-6008 or email us: frontdesk@disalvocpa.com

References

U.S. Department of the Treasury. (2025, August 14). Treasury announces federal government will phase out paper checks on September 30th [Press release]. U.S. Treasury. https://home.treasury.gov/news/press-releases/sb0223

U.S. Department of the Treasury, Bureau of the Fiscal Service. (2025, August 14). Paper checks are going away – here’s what you need to know. U.S. Treasury. https://www.fiscal.treasury.gov/news/paper-checks-going-away.html

Journal of Accountancy. (2025, July 7). AICPA recommends changes to mandate ending federal disbursements by paper check. Journal of Accountancy. https://www.journalofaccountancy.com/news/2025/jul/aicpa-recommends-changes-to-mandate-ending-federal-disbursements-by-paper-check

Reference: Blog AI Assited: OpenAI. (2024). ChatGPT (GPT-4o) [Large language model]. https://chat.openai.com

Disclaimer: The information in this article is for general informational purposes only and should not be considered tax, accounting, or legal advice. Every situation is unique, and results may vary. For guidance specific to your circumstances, please consult a qualified professional.