As the IRS continues to move away from paper checks, how you choose to receive your tax refund matters more than ever. If your 2025 tax return does not include direct deposit information, your refund will still be processed—but it may be significantly delayed.
Here’s what taxpayers need to know and why having a bank account on file is now critical.
The IRS Is Phasing Out Paper Checks
The IRS is steadily transitioning to electronic payments for both refunds and tax payments. This shift is designed to reduce fraud, speed up processing, and lower administrative costs. As a result, paper checks are no longer the default option for refunds.
While paper checks have not been eliminated entirely, they are now considered a last resort rather than a standard method of payment. This change directly impacts taxpayers who file returns without direct deposit information.
What Happens If You File Without Direct Deposit Information?
If you e‑file your 2025 tax return and do not include bank account details, the IRS will accept and process your return, but your refund timeline will change.
Here’s the step‑by‑step process:
- Your Return Is Processed Without a Refund Issued
The IRS will not automatically send a paper check. Instead, they pause the refund while attempting to obtain electronic payment information from you.
- The IRS Sends a Letter Requesting Banking Information
After filing, the IRS will mail you a letter asking you to provide or update your direct deposit details within 30 days. This letter will:
- Explain how to submit banking information
- Address situations where direct deposit was rejected by a bank
- Provide details on exceptions
- A Dedicated Phone Line Is Required for Paper Check Requests
If you truly cannot use direct deposit, the letter includes a special IRS phone number you must call to request an exception and approval for a paper check. Fluence will not be able to assist with this.
- Paper Checks Are Issued Only After Extended Delays
If no banking information is provided and no exception is approved, the IRS will wait up to six weeks before issuing a paper check. This delay exists primarily to prevent the IRS from having to pay interest on your refund.
Not having a bank account on file no longer just means “waiting for a check.” In 2025, it can mean weeks or months of delay, extra IRS correspondence, and unnecessary stress.