The way Americans receive tax refunds and government payments is changing quickly. In 2026, the Internal Revenue Service (IRS) is accelerating its move away from traditional paper checks and encouraging taxpayers to switch to electronic payment methods.

For millions of Americans—especially retirees and individuals who still rely on mailed checks—this transition could have a major impact on how they receive money from the federal government.

If you usually receive your tax refund by mail, or if you depend on other government payments, here’s what you need to know about the IRS plan to phase out paper checks, why it’s happening, and what steps you should take now.