1.4 Million Taxpayers Face Delays as IRS Phases Out Paper Checks

The shift to digital payments leaves behind unbanked and underbanked Americans, raising concerns about equity and financial hardship.

Apr. 11, 2026 at 2:59pm

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An abstract illustration composed of overlapping geometric shapes in shades of blue, green, and red, conceptually representing the transition from paper to digital tax refund payments.The IRS's push for digital tax refunds leaves millions behind, exposing the challenges of technological progress without equity.Washington Today

The IRS's decision to phase out paper tax refund checks has left 1.4 million taxpayers facing delays of up to six weeks, as the agency demands they provide banking information within 30 days or face the longer wait times. While the move is intended to streamline processes and cut costs, it disproportionately impacts low-income individuals, senior citizens, and those without stable housing who lack access to digital banking services.

Why it matters

The policy highlights the tension between efficiency and equity as the government pushes for a more digitalized society. Critics argue the IRS's approach is tone-deaf, failing to account for the millions of Americans who are unbanked or underbanked and lack the resources to easily make the transition to electronic payments.

The details

The IRS, backed by an executive order from the Trump administration, is phasing out paper tax refund checks in favor of electronic payments, which it says are faster, more secure, and cost-effective. However, according to the National Taxpayer Advocate, about 10 million taxpayers relied on paper checks during the 2025 filing season. These individuals often lack access to stable banking services or digital literacy, making the IRS's 30-day ultimatum a significant burden.

  • The IRS began phasing out paper tax refund checks in 2026.
  • Taxpayers have 30 days to provide banking information or face a six-week delay in receiving their refunds.

The players

IRS

The Internal Revenue Service, the federal agency responsible for administering and enforcing federal tax laws.

Trump administration

The former presidential administration that issued an executive order supporting the IRS's move to phase out paper tax refund checks.

National Taxpayer Advocate

An independent organization within the IRS that represents the interests of taxpayers and identifies problems in the tax system.

Omeed Firouzi

A legal expert on low-income taxpayers who has criticized the IRS's policy for disproportionately affecting vulnerable populations.

Elaine Maag

A senior fellow at the Urban-Brookings Tax Policy Center who has noted that rushing the implementation of the paper check phaseout without adequate support creates financial hardships for those who can least afford it.

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What they’re saying

“We must not forget that millions of Americans are still unbanked or underbanked. For them, providing banking details isn't as simple as logging into an app. It's a barrier, not a convenience.”

— Omeed Firouzi, Legal expert on low-income taxpayers

“Rushing implementation without adequate support creates financial hardships for those who can least afford it.”

— Elaine Maag, Senior fellow, Urban-Brookings Tax Policy Center

What’s next

The IRS has stated it will closely monitor the impact of the paper check phaseout and make adjustments as needed to ensure a smooth transition for all taxpayers.

The takeaway

The IRS's paper check phaseout highlights the broader challenge of balancing technological progress with equity and inclusivity. As the government pushes for a more digitalized society, policymakers must ensure that vulnerable populations are not left behind, and that the transition to electronic payments does not create undue financial hardship for those who can least afford it.