Goodbye IRS Paper Checks: A Guide for US Expats

Changes are coming for US taxpayers, and are right around the corner. In September 2025, the federal government will officially end paper check refunds in an initiative to modernize its payment systems. The IRS, US Treasury, and Social Security Administration are transitioning to an all-digital payment system, where direct deposit will become the standard. This shift aims to improve efficiency, reduce fraud risks, and lower administrative costs.

For US expats, especially those without US bank accounts, this shift could create real challenges in receiving IRS refunds. In this article, we’ll break down what the changes mean, the steps you can take now, and how to avoid disruptions while living abroad.

Why is the IRS Switching to Electronic Payments?

The IRS is phasing out paper check refunds to make federal payments faster, safer, and more reliable. Direct deposit reduces fraud, cuts administrative costs, and eliminates the risk of lost or stolen checks. It also helps the government track payments more efficiently and aligns with the Department of the Treasury’s push toward modern, digital-first systems.

This change is part of Executive Order(EO) by the president, Modernizing Payments to and From America’s Bank Account, which directs federal agencies to fully replace paper-based payments with electronic methods by September 30, 2025. According to the Treasury, paper-based payment infrastructure costs taxpayers over $657 million in 2024, one of the reasons the government is pushing for the move to electronic.

This could mean quicker access to refunds and fewer delays for taxpayers. This is especially important for Americans abroad, who often face long international postage times and foreign banks that won’t cash US Treasury checks.

When Do You Need to Take Action?

Beginning in the 2025 tax season, the IRS will transition the majority of taxpayers to electronic refund payments. This includes individuals, families, and anyone claiming a tax credit. For groups like Social Security recipients, Americans abroad, and those without bank accounts, “the unbanked,” new options like prepaid debit cards or digital wallets have been mentioned. However, the IRS has not yet shared a full plan, so how this will actually play out remains to be seen.

What Should You Do Now?

To avoid delays, here’s what you should do now:

• Sort out your account options: If you don’t already have a US account, consider opening a digital-only option or a low-fee credit union account. The IRS may also allow prepaid debit cards.
• Check your payment details: Double-check your bank account, routing number, or digital wallet details before filing.
• Protect your information: Only update your details through trusted IRS or bank channels, and watch out for scams. Refund-related scams are on the rise.
• Get ahead of the deadline: Setting up your payment info in advance ensures faster refunds and fewer surprises when the IRS fully phases out checks.

Don’t wait until filing season to make the switch. Taking care of a few details now will save you time (and stress) later:

How Long Does an IRS Electronic Refund Take?

Once your return is accepted, the IRS typically sends electronic refunds within 21 days. However, the exact timing depends on when you filed, whether there were errors or additional checks needed, and whether you claimed certain refundable credits, like the Additional Child Tax Credit.

Once the refund is sent, it typically arrives in your US account or digital service within just a few business days. This is a far cry from the IRS paper check refund, which could take weeks or even months for Americans living abroad.

You can check your refund status anytime using the official IRS Check Your Refund tool, which updates daily.

Key Benefits of IRS Electronic Payments

Switching from an IRS paper check to direct deposit offers clear advantages:

• Faster access: Most electronic refunds are issued within 21 days after acceptance, compared to the longer wait for IRS paper check refunds, especially for taxpayers abroad.
• More secure: Electronic payments reduce the risk of lost, stolen, or undeliverable checks.
• Reliable tracking: Digital payments are easier for the IRS to monitor, helping reduce errors and delays.
• Cost-effective: Moving away from paper-based payments lowers administrative costs for both taxpayers and the government.

Electronic payments help ensure your money arrives more quickly and securely than waiting for a mailed check.

Don’t Risk Disruptions

At MyExpatTaxes, we specialize in helping US expats stay ahead of IRS changes.

If you still rely on paper checks or don’t have a US bank account, now is the time to prepare. We can help you update your refund details and explore alternatives to traditional US banking, so you won’t get caught off guard once the switch happens.

By acting early, you can turn what may initially feel like a challenge into an opportunity. While the end of paper checks might seem inconvenient at first, this shift could ultimately means faster, safer, and more reliable refunds for expats worldwide.

FAQ: End of IRS Paper Checks

When will the IRS stop issuing paper refund checks?

Paper check refunds are set to officially end by September 2025, as part of the federal government’s transition to digital payments.

What if I don’t have a US bank account?

You’ll need to make alternative arrangements. Some expats use a family member’s US address to open an account, while others choose digital-only banks that provide US account and routing numbers.

Will prepaid debit cards or digital wallets be available?

The IRS has mentioned these as possible options, but it has not released a full plan yet, and no one knows how this will work in practice.

How long does an IRS electronic refund take?

The IRS issues most electronic refunds within 21 days of accepting your return. Once sent, funds usually arrive in your US account within a few business days.

How can I transfer my refund abroad?

Yes. Use services like Currencies Direct to transfer your IRS refund from a US account to your foreign bank account. These services often secure better exchange rates than traditional banks.

How can I track my refund?

You can track your refund anytime using the IRS “Where’s My Refund?” tool

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