IRS Will Continue Issuing Paper Refunds Checks for the Time Being

Posted on July 24, 2019

95% of all refunds are currently electronically paid to taxpayers directly into their bank accounts. Only 5% of all refunds are paid with a paper check. The IRS stated that it will continue to issue refunds via paper check because there is still a large number of taxpayers that do not have a bank account. One of the drawbacks to an electronic payment is that the IRS does not presently have any way to verify that a refund is going to the taxpayer’s bank account. This allows identity thieves to file a legitimate tax return for a taxpayer and only changing the banking information. The identity thief can then steal a valid refund by having the money deposited into the identity thief’s bank account. Do you get your refunds via a paper check or electronically? Let us know.