About 1.4 million tax filers are experiencing delays in receiving their refunds this season due to the IRS's ongoing transition away from paper checks, a move prompted by an executive order signed by President Donald Trump in March 2025 requiring government agencies to shift to electronic payments [1]. House Ways and Means Committee Democrats recently sent a letter to Treasury Secretary Scott Bessent expressing 'additional concerns' about the roughly 1.4 million IRS notices sent to filers regarding refund delays tied to paper payment requests. Previously, as of March 9, more than 830,000 taxpayers had received such notices [1].
The IRS notice, CP53E, instructs affected taxpayers to provide updated banking information within 30 days via an IRS online account to receive their refunds by direct deposit; otherwise, the agency will issue a paper refund after six weeks [1]. Lawmakers emphasized the urgency of the matter, noting that individuals and families rely on these refunds to offset rising costs of gas, food, and basic necessities [1].
The IRS announced the transition to electronic payments in September, citing goals to protect taxpayers, speed up refunds, and reduce costs [1]. During the 2025 filing season, approximately 94% of individual taxpayers opted for direct deposit refunds, while about 10 million received paper checks [1]. The shift is expected to impact various populations, including unbanked taxpayers, senior citizens, unhoused individuals, and younger filers who move frequently, according to Omeed Firouzi, director of the low-income taxpayer clinic at Temple University's Beasley School of Law [1].
Despite the delays, many Americans are seeing larger tax refunds this season due to changes enacted via President Trump's 'big beautiful bill.' As of March 13, the average refund for individual filers was $3,623, up by about $350 from the previous year [1]. However, economists warn that this windfall may be offset by higher fuel prices amid the Iran war, with gasoline averaging $3.97 per gallon nationwide, a 33% increase from one month ago [1]. The Trump administration has highlighted the importance of refund size as Americans face rising costs for fuel, groceries, housing, and other essentials, with affordability remaining a central issue ahead of the November midterm elections [1].
CONCLUSION
The IRS's shift from paper checks to electronic refunds has led to significant delays for about 1.4 million filers, raising concerns among lawmakers and advocacy groups. While average refund amounts have increased, rising fuel prices and cost-of-living pressures may diminish the positive impact for many Americans. The transition is expected to affect vulnerable populations and remains a key issue as the midterm elections approach.