Natalie McHugh

CPA | CK Principal

Please note that this blog is based on laws effective in June 2025 and may not contain later amendments. Please contact Cray Kaiser for the most recent information.

If you’ve mailed a paper check to the IRS and noticed that it hasn’t been cashed, you’re not alone. There are several different reasons that this may be happening to you. Here are some short-term reasons and long-term changes that might be affecting your situation.

Immediate Concern: What to do if the IRS hasn’t cashed a check

If it’s been at least two weeks since you sent the payment to the IRS and your financial institution verifies that the check hasn’t cleared your account, here’s what you can do:

• Contact the IRS
  Call the IRS at 800-829-1040 to ask if the payment has been credited to your tax account
• Place a Stop Payment (if needed)
  If the payment hasn’t been credited and your check hasn’t cleared, you may:
  
  • Choose to place a stop payment order on the original check.
  • Send another payment.
    
    

If you choose this option, the IRS won’t charge a dishonored check penalty and you may be reimbursed for bank charges related to stopping payment. Form 8546 will allow you to file a claim for reimbursement of bank charges.

What if you’re waiting on a refund check?

If you’re expecting a paper refund check from the IRS and it hasn’t arrived:

• Check the status of your refund online
  • Use the Where’s My Refund at IRS.gov

• Request a refund trace

If the tool shows that the IRS issued your refund, but you haven’t received it, your refund may have been lost, stolen or misplaced. You should:

• Call the IRS at 800-829-1040 and ask them to do a refund trace

Depending on the status:

• If the check wasn’t cashed, you will receive a replacement check once the original is cancelled.
• If the refund was cashed, the Bureau of Fiscal Service (BFS) will send you a claim package that includes a copy of the cashed check. Follow the instructions for completing the claim package. BFS will review your claim and the signature on the canceled check before determining whether a replacement check can be issued. The BFS review can take up to six weeks to complete.
  
  
  

Coming Changes: The End of IRS Paper Checks

In an effort to modernize and reduce fraud, President Trump signed an executive order on March 25, 2025 requiring all federal agencies, including the IRS, to end their use of paper checks and switch to electronic payments by September 30, 2025. 

What does this mean for you?

• After September 30, 2025,  refunds from the IRS will be issued electronically, typically via direct deposit into a US bank account
• Tax payments to the federal government must be processed electronically 
  
  

The US Secretary of the Treasury has been tasked with delivering a detailed implementation plan within 180 days, along with exceptions. Exceptions may include:

• Individuals who lack access to banking services or electronic payment systems
• Emergency payments where electronic methods are impractical
• Certain national security or law enforcement activities that necessitate non-electronic payments
• Other special cases that may qualify for an exception under other existing laws

Available IRS electronic payment options

There are already many payment methods available for making electronic tax payments. Some current options available are:

• Your online account with the IRS
• IRS Direct Pay
• EFTPS: The Electronic Federal Tax Payment System (enrollment required)
• Debit card, credit card or digital wallets

The executive order cited that the use of paper-based payments by the federal government imposes unnecessary costs, delays, risk of fraud, lost payments, theft and inefficiencies. By switching to electronic payments, the IRS aims to improve accuracy, speed and security for taxpayers.

Cray Kaiser is here to help

As these changes happen be assured that the experts at Cray Kaiser will continue to provide guidance on your electronic options for both refunds and tax payments. If you have concerns about a check that hasn’t cleared or want help transitioning to an electronic payment method, contact us today at (630) 953-4900 or fill out this form.