On March 25, 2025, President Donald J. Trump signed Executive Order (EO) 14247, Modernizing Payments To and From America’s Bank Account, which went into effect on September 30, 2025. The EO directs the Treasury Department, including the IRS, beginning October 1, 2025, to transition all federal disbursements, including tax refunds, to electronic payments for the purpose of improving efficiency, reducing fraud, and lowering costs.

The IRS will begin implementing the EO for 2025 tax returns. For 2024 and prior tax returns, there will be no change in how taxpayers receive payments from or make payments to the IRS. For 2025 returns filed in 2026, taxpayers will need to provide the IRS with their direct deposit information unless they qualify for an exception or are willing to experience delays. The IRS is currently working to formalize the exception process for the 2025 tax returns and develop alternative methods of payment for subsequent tax years.

We anticipate that U.S. taxpayers abroad without a U.S. bank account will qualify for an exception and be allowed to receive a paper check refund, but significant delays in receiving the refund should be expected.

It is also expected that the method of paying the IRS by check will remain in place until at least 2027.

For more information, the National Taxpayer Advocate has a full write-up about this issue on its blog.

Please contact our office with additional questions.