If you file your taxes regularly, you should note the deadline of 30th September. From the end of September the IRS will not send your tax refunds if you use the paper check method. The only option will be available for you is the Direct Deposit. IRS will directly deposit your refund into your bank accounts.
The main reason for this change is to save money and make the process safer. Paper checks cost a lot of money to IRS. This is why IRS will stop the paper check method from the 30th September.
According to some research the paper check cost is about $650 million every year. Another disadvantage is the paper checks can get lost or stolen. With the digital payment system, the IRS can send your refund faster and more securely.
If you are someone who has been getting paper checks, you will need to switch to a digital method to avoid delays in receiving your IRS tax refund. All you need to do is to update your IRS account.
Direct deposit to the bank is the quickest and safest option to get your refund. If you provide your bank account details to the IRS, your refund will go straight into your bank account. So you will get your money faster. You can receive your payment usually within 21 days.
If you do not have a bank account, you can use a digital wallet to receive your refund. These methods are also secure and will help you get your money quickly.
Remember the deadline of September 30
September 30 is the last date of paper check refund (if there is no date extension by IRS). After the date you will not receive your IRS tax refund if you are still using the paper checks.
IRS is collecting the bank account details. If you have not update your bank details, you should do that immediately to avoid any delay in refund.
For those who are receiving the tax refund by bank account, you are good to go. Your refund will be process on time if there is not a issue.
What are the reason for this change?
The change is very important because it will make the refund process faster and safer. Paper checks can take weeks to arrive. And there is a chance they can be lost or stolen.
But with digital payments, you will get your refund much faster. Most important thing is that there is no risk of losing a check.
The move also saves the government millions of dollars each year. And this amount can be used for other important things.
What you should do?
Update Your Bank Information: Make sure your bank account details are correct with the IRS. This will help your refund go straight into your account.
Prepaid Cards or Digital Wallets: If you do not have a bank account, you can use a Prepaid Debit Card or Digital Wallet for your refund.
This is very important to update yourself. So that you are not going to miss any of your refund.
So, from the September 30 IRS will stop sending refund for paper checks. You can only receive your refund by direct deposit. This is why you should update your bank account details with the IRS to avoid any delay. If you do not have bank account, you can receive your payment by Digital Wallet and Prepaid Debit Card. But our recommendation will be use a bank account for better processing.
