IRS Paper Checks: 21 Questions Expats Are Asking

Yes, but the situation is more nuanced than many headlines suggest.
The U.S. Treasury has directed federal agencies to move toward electronic payments instead of paper checks as part of a broader effort to reduce fraud, lower administrative costs, and speed up payments.

For tax refunds specifically, the IRS now strongly prioritizes direct deposit and electronic payment methods. While paper refund checks have not disappeared entirely, the IRS increasingly requires taxpayers to provide electronic payment information before issuing a refund.
For many taxpayers — especially Americans living abroad — this shift means it is becoming much harder to rely on traditional mailed refund checks.

Much of the confusion comes from the difference between Treasury policy goals and IRS operational rules.

The U.S. Treasury has announced that federal agencies should move away from paper checks except in limited situations. However, the IRS still operates under existing tax law that allows refunds to be issued by check when electronic payment is not possible.
As a result, taxpayers may see conflicting information:
– Treasury statements saying paper checks are ending
– IRS guidance indicating that paper checks may still be issued in certain situations
This gap between policy direction and implementation is one of the main reasons taxpayers are searching for information about IRS paper refund checks.

The shift toward electronic payments stems from a federal directive encouraging agencies to modernize how they send and receive payments.
This policy, often referenced in discussions about IRS paper checks and electronic payments, instructs federal agencies to reduce reliance on paper checks wherever possible and adopt digital payment systems that are faster and more secure.
For the IRS, this means expanding electronic refund options while gradually reducing the circumstances where paper checks are issued.

In some cases, yes.
If a taxpayer files a return without valid banking information, the IRS may still issue a paper refund check. However, the agency increasingly requires taxpayers to provide electronic payment details before releasing refunds.
This is why some taxpayers now receive notices asking them to update their banking information before a refund can be issued.
For expats, this can be especially complicated because the IRS generally cannot deposit refunds into foreign bank accounts.

If you file a return without valid banking information, the IRS may temporarily hold the refund and request updated payment instructions.
In some cases, taxpayers receive a notice requesting electronic banking details before the refund can be issued. This process can delay refunds significantly compared with standard direct deposit processing.
For Americans abroad, this situation often occurs because they do not maintain an active U.S. bank account.

Paper refund checks typically take much longer than direct deposit.
Typical timelines:
• Direct deposit refunds: about 21 days when filing electronically
• Paper refund checks: 4–6 weeks domestically
• International delivery: 4–8 weeks or longer
Mail delays, identity verification checks, and address issues can extend these timelines even further for expats.

Most IRS refund checks are issued by the U.S. Treasury’s Bureau of the Fiscal Service, which processes federal payments on behalf of government agencies.
Checks are generally mailed from federal payment processing centers in the United States. For international taxpayers, delivery depends on international postal services and can take significantly longer than domestic refunds.

No. The IRS has not completely eliminated paper refund checks.
The U.S. Treasury has directed federal agencies to transition toward electronic payments wherever possible. However, the IRS still operates under tax laws that allow refunds to be issued by check when electronic payment is not feasible.
In practice, this means the IRS now strongly prioritizes electronic refunds, but paper checks may still be issued in limited circumstances, particularly when taxpayers cannot provide valid banking information.
For Americans living abroad, this distinction is important because many expats cannot receive direct deposits into foreign bank accounts.

No, taxpayers can still mail paper checks to the IRS to pay taxes at this time.
However, the federal government strongly encourages electronic payments through systems such as:
• IRS Direct Pay
• Electronic Federal Tax Payment System (EFTPS)
• debit or credit card payments
These electronic methods provide confirmation numbers and faster processing, which reduces the risk of lost payments.

At the time of publication, the IRS still accepts paper checks for estimated tax payments and other tax obligations.
However, federal policy is pushing agencies toward digital payments. Over time, the IRS may continue expanding electronic payment systems and discouraging paper checks.
Taxpayers who make frequent estimated payments may benefit from setting up electronic payment methods now.

Federal agencies cite several reasons for reducing paper checks:
• paper checks are far more likely to be lost, stolen, or altered
• electronic payments are faster and cheaper to process
• digital systems reduce administrative costs and fraud risks
For tax refunds specifically, electronic deposits allow the IRS to issue payments much faster than mailing physical checks.

The IRS refund system only supports U.S. bank routing numbers, which are part of the American ACH payment network.
Most international bank accounts use different systems such as IBAN and SWIFT codes, which the IRS system does not process for refunds.
As a result, Americans living abroad typically need one of the following to receive refunds electronically:
• a U.S. bank account
• a financial platform that provides a U.S. routing number
• or, in some cases, a paper refund check
This limitation is one of the main reasons expats have historically relied on mailed refund checks.

The IRS only processes direct deposit refunds to U.S. bank accounts with a U.S. routing number.
Most foreign bank accounts use international banking systems such as IBAN or SWIFT codes, which the IRS refund system does not support.
Because of this limitation, many Americans living abroad historically relied on paper refund checks mailed internationally.

Expats generally have three options for receiving tax refunds:
1. Maintain a U.S. bank account that accepts direct deposit
2. Use certain digital financial platforms that provide U.S. routing numbers
3. Receive a paper refund check, when available
Many expats choose to maintain a U.S. account specifically to avoid delays in receiving tax refunds.

Opening a U.S. bank account does not trigger FBAR reporting, because FBAR applies only to foreign financial accounts.
However, if a taxpayer holds foreign accounts with balances exceeding certain thresholds, those accounts may still require reporting on FBAR or FATCA forms.
For most expats, maintaining a U.S. account for tax refunds does not significantly change their reporting obligations.

Major policy changes often lead to scams targeting confused taxpayers.
Common scams include:
• messages claiming your refund needs to be “activated”
• emails requesting bank account information for refunds
• fake services claiming they can expedite IRS payments
The IRS does not initiate contact by email, text, or social media about refunds.
Taxpayers should verify all communications through official IRS channels.

To reduce the risk of refund delays:
• file electronically whenever possible
• provide valid U.S. banking information for direct deposit
• confirm your mailing address is current
• respond quickly to any IRS notices
For expats, planning ahead for refund delivery can prevent delays of several months.

Americans living abroad should prepare for a future where electronic payments are the standard for IRS refunds.
The most practical steps include:
• ensuring access to a U.S. bank account or direct-deposit-compatible account
• filing electronically when possible
• staying informed about IRS refund procedures
Taking these steps can help expats avoid confusion and ensure they receive tax refunds as quickly as possible.