IRS Payments for US Expats: No More Paper Checks

IRS electronic payments for US expats: paper refund checks end September 30, 2025

Beginning September 30, 2025, the US Treasury will stop issuing paper checks for most federal payments — including IRS tax refunds. Refunds will be delivered electronically, typically by direct deposit. The federal government is also moving receipts (payments you send the IRS) to electronic methods as quickly as practical. Plan now so your refunds and payments work smoothly.

What exactly changes on September 30, 2025?

• Refunds go electronic by default. After the deadline, the IRS will issue most tax refunds via direct deposit (ACH) or another electronic method.
• Paper refund checks largely end. Only narrow, Treasury-approved exceptions will remain.
• Payments to the IRS are shifting online. Agencies are directed to process federal receipts electronically “as soon as practicable.” Expect mailed checks and lockbox processing to be phased out. Don’t wait—switch to e-pay now.

Why the IRS is eliminating paper for refunds

• Speed: Direct deposit arrives faster than mail.
• Security: Far fewer lost, stolen, or altered checks.
• Efficiency: Lower processing costs and fewer delays.
• Traceability: Clear electronic records for both refunds and payments.

US expats: how this impacts you

If you live abroad, prepare for these realities:

• You’ll need USD banking coordinates. To receive a refund, provide a US routing and account number or an electronic alternative that supports ACH in USD.
• International addresses won’t matter for refunds. Deposits follow your bank details, not your mailing address.
• e-Payments replace mailed checks. Use IRS Direct Pay, EFTPS, or card payments via IRS-authorized processors.
• Mind FX costs. Choose solutions with transparent currency conversion and low fees.

Action checklist for US expats

1) Create or update your IRS Online Account

• Set it up now: Follow our guide: How to create an IRS Online Account.
• Add bank details: Enter correct routing and account numbers for direct deposit refunds.
• Keep access current: Update your email, phone, and MFA options so you can log in while overseas.

2) Arrange a way to receive USD electronically

• Option A — US bank account: Ideal for ACH refunds and IRS Direct Pay. Some banks allow accounts for US citizens living abroad.
• Option B — Multi-currency/digital account: If a US bank is difficult, use a provider that gives you your own US routing and account numbers. We recommend setting up a Wise digital account for international money transfers. We have partnered with Wise to offer some additional special benefits if you open an account: Wise for US expats.
• Test early: Run a small inbound transfer to confirm details before filing season.

3) Switch how you pay your US taxes

• IRS Direct Pay: Transfer directly from your bank account (no fee).
• EFTPS: Schedule and track estimated payments and balances due.
• Card payments: Pay by debit/credit via IRS-authorized processors (fees may apply).
• Avoid mail: Move away from paper checks now to prevent delays as lockbox processing is retired.

4) Protect yourself from scams

• Only update details on IRS.gov or through trusted tax software—never via unsolicited email/text/call.
• Ignore “verify your bank” messages. The IRS won’t ask you to confirm direct deposit info by phone or email.
• Use MFA and strong passwords on your IRS and banking accounts.

Accepted electronic methods at a glance

Refund delivery

• Direct deposit (ACH): Fastest and standard for most refunds.
• Prepaid debit cards: Possible in limited situations if no bank info is available.
• Digital wallets: Treasury is supporting modern options as systems expand.

Payments to the IRS

• IRS Direct Pay (bank-to-IRS transfer with real-time confirmation).
• EFTPS (robust scheduling and receipts; favored for estimates and larger payments).
• Card payments through IRS-authorized processors.

Exceptions: who might still use paper?

Exceptions are limited and must be approved by Treasury. Examples include:

• No access to banking or electronic payment systems.
• Emergencies where electronic disbursement is impractical.
• National security/law enforcement circumstances.
• Other hardships identified in regulation or guidance.

For most taxpayers with modern banking access, expect electronic refunds and payments to be the norm.

Practical setup tips for expats

Banking details

• Get US ACH credentials. Secure a US routing and account number (via US bank or a multi-currency provider).
• Match names exactly. Ensure your return name matches the name on the account receiving the refund.
• Joint filers: You may use a joint account—verify accuracy for both taxpayers.

Managing currency conversion

• Compare FX costs and speeds. Favor transparent rates and low transfer fees.
• Choose timing. Convert when rates make sense or hold USD if you spend in dollars.

Travel and account access

• Keep MFA working abroad. Use an authenticator app or roaming SMS that you can access overseas.
• Add a backup method (secondary email/phone) in case you lose a device.

Timeline: what to do and when

Now

• Create your IRS Online Account and add bank info: step-by-step guide.
• Open or enable a USD-receiving account and test a small deposit. Consider Wise (SmileTax partner) if a US bank isn’t practical.
• Pick your e-payment method (Direct Pay or EFTPS) and set reminders for estimates.

Before you file

• Double-check routing and account numbers in your tax software or with your preparer.
• Confirm contact details so you receive IRS notices and status updates promptly.

After you file

• Track your refund online. If a deposit fails, update bank info quickly to avoid delays.
• Save confirmations and payment receipts for your records.

FAQs for US expats

Will my refund come if I don’t set up direct deposit?

Refunds are moving electronic by default after September 30, 2025. Without valid deposit details, your refund could be delayed. Add bank details now.

Can I still mail a check to pay my tax bill?

The government is transitioning receipts to electronic methods as quickly as practical. Some agencies are already setting cutoff dates. To avoid issues, switch to IRS Direct Pay, EFTPS, or card payments now.

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

Use a provider that gives you US routing and account numbers for ACH deposits. See our overview of Wise for US expats (SmileTax partner).

Are paper checks gone forever?

For refunds, paper checks largely end after September 30, 2025, with narrow exceptions. For payments, paper is being phased out—plan for full electronic methods.

Is it safe to share bank details with the IRS?

Yes—when you do it directly on IRS.gov or through trusted software. Never provide details via unsolicited messages.

Key takeaways

• Refunds: Paper checks end for most taxpayers on September 30, 2025. Use direct deposit.
• Payments: Move to electronic methods now; mailed checks are being phased out.
• Expats: Secure a USD-receiving account and keep your IRS login and MFA working overseas.
• Use our guides:
  • How to create an IRS Online Account
  • Wise for US expats (SmileTax partner)

This article is educational and not individualized tax advice. For personal guidance, speak with a qualified tax professional.