IRS to Stop Issuing Refund Checks to Idahoans

President Trump has signed another executive order and it may affect how Idahoans receive their federal tax return. 

“Efficiency” is a buzzword that we haven’t been able to escape since the new administration started. While most of that has been focused on the cuts being made by the Elon Musk led Department of Government Efficiency (DOGE,) there are a few other things happening behind the scenes to modernize the government. 

READ MORE: Why You Need to Stop Sending Checks in Mail in Idaho NOW

That’s actually the goal of the executive order that President Trump signed on March 25. Under the order, all agencies in the Federal government must stop using paper checks to deliver funds between agencies, benefits, vendor payments and tax returns. 

After the deadline listed in the order, federal agencies, including the IRS, will have to transfer funds electronically through direct deposit, debit or credit card payments, digital wallets and real-time transfers. 

What Does That Mean This Year’s Tax Return

We’re just a few days away from the April 15 tax deadline and you’re counting on receiving your federal return the same way you’ve been receiving it for ages. If you prefer a paper check, you’ll still get a paper check this time as the deadline to stop sending paper checks doesn’t kick in until September 30. 

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Leading up to the change, there will be a public awareness campaign to help those who’ve resisted the switch to receiving their tax returns learn how to get their direct deposit set-up to receive their money. It shouldn’t be too much of a headache as the USA Today reports that going into the current tax season, eight of ten taxpayers already opt to receive their returns electronically.  

According to the fact sheet about the order, there may be exceptions made for people without banking or electronic payment access. 

Why the Switch to Electronic Payments?

As we alluded to earlier, the administration feels that paper checks are outdated and wasteful, but it’s also a security thing. 

The fact sheet mentions an increase in mail theft since 2020. Last year, we explained to you that mail theft can lead to an increase in a crime called “check washing.” This is where the criminals that grabbed your check use chemicals to dissolve ink and rewrite them to a different payee for another amount. 

Electronic payments have proven to be more secure, so this will cut down on the check fraud that the Treasury has to deal with.