Yes, the IRS destroyed approximately 30 million paper-filed, informational tax returns (such as Forms 1099) in March 2021. This action was taken due to a massive backlog of unprocessed paper documents, software limitations, and to make room for new documents. Although intended to clear space, the destruction prompted concerns about negative consequences for taxpayers.
Effective September 30, 2025, the IRS discontinued the issuance of paper checks for all tax-related refunds. All payments from the IRS will be made electronically via direct deposit, electronic funds transfer, prepaid debit cards, or other approved digital methods.
March 2021 – IRS destroys 30 million paper-filed, informational tax returns. May 4, 2022 – Treasury Inspector General for Tax Administration (TIGTA) publishes report documenting IRS operations in which it discloses the destruction of the 30 million records.
Even though the IRS no longer issues paper refund checks, you can still file a paper tax return, and all paper returns are now digitally processed.
The IRS is phasing out paper tax refund checks for individual taxpayers, effective September 30, 2025. This change affects the 7% of taxpayers who still receive paper checks, requiring them to switch to an electronic refund method.
On September 30, 2025, the U.S. Treasury discontinued federally issued paper checks and is moving to digital payments. Federal benefit recipients who still get paper checks WILL NOT be automatically switched to a debit card or direct deposit.
There is no change to the filing method of paper tax returns; see File by Paper. For other documents, except POA declarations and TIA forms, filed with us that require original signatures, we will accept: A photocopied, faxed, or scanned copy of the signature page with original signatures.
But what if you're filing a paper return? If you're filing a paper copy of your tax return, the IRS won't technically reject it because of missing or incorrect information. However, your return won't be considered as filed until it's corrected.
Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
The IRS 7-year rule primarily applies to keeping records for claiming a deduction for bad debts or losses from worthless securities, allowing a longer period to file for a credit or refund, but it's not a universal audit limit; it's often a recommended safe buffer for general record-keeping, with the standard IRS audit period usually being 3 years, extending to 6 years for substantial income omission (over 25%) or foreign income issues, and indefinitely for fraud.
Mail Your Tax Return with USPS. Use the U.S. Postal Service® to mail your tax return, get proof that you mailed it on a specific date with Certified Mail® or Registered Mail® service, and track its arrival at the IRS. The IRS considers a tax return to be filed on time if your envelope: Is properly addressed.
The IRS maintains that filing returns electronically can prevent mistakes and lower the odds of an audit. The error rate for a paper return is 21%. The error rate for returns filed electronically is 0.5%.
Yes, the IRS is accepting e-file returns now for the 2025 tax year, with individual returns officially opening on January 26, 2026, though some early options like IRS Free File Guided Software allowed taxpayers to prepare and hold returns starting January 9, 2026, and Free File Fillable Forms opened Jan 26. However, returns including Form 4136 (Credit for Federal Tax Paid on Fuels) have a delayed acceptance date of February 15, 2026.
Yes, the IRS is phasing out paper tax refund checks for individuals starting September 30, 2025, shifting to electronic payments (Direct Deposit, debit cards) to boost security, speed up refunds, and cut costs, as mandated by an Executive Order to modernize federal payments, though exceptions for vulnerable populations may exist. Taxpayers who still get paper checks need to set up direct deposit or another electronic method to receive refunds faster and avoid mail-related fraud.
In general, all federal agencies phased out sending and receiving paper checks after the September 30 deadline. This included: The Internal Revenue Service (IRS).
No More Paper Tax Refund Checks
Accordingly, the IRS and Department of Treasury recently announced that paper tax refund checks for individual taxpayers will be phased out beginning on September 30, 2025, as required by the order. The change is designed to protect taxpayers, speed up refunds, and cut costs.
So, even now, across the greatest part of the planet, cash is definitely—it remains king, and it continues to be the major mode of payment, but there are various estimates that show that as a mode of payment, cash would decline to as low as 5% by 2030 to 2031.
WASHINGTON – The U.S. Department of the Treasury announced that the federal government will stop issuing paper checks for most federal payments on September 30, 2025. If you are one of the few people who still receives a federal benefit check, it's time to switch to an electronic payment method.
Although electronic payments are growing, checks are still widely used. But cashing them can be tricky. Banks often refuse to do so if an account doesn't exist, you're missing proper ID, you're trying to cash business checks, the amount is too large, or the check is either stale or post-dated.