Digital Nomad
How the IRS’s Phase-Out of Paper Refund Checks Affects Digital Nomads and Others
Starting September 30, 2025, individual taxpayers will no longer receive paper refund checks except in limited cases. This shift—mandated by Executive Order 14247—has big implications for remote workers abroad, unbanked individuals, and others without regular U.S. bank access.
By NomadicTax Research Team • 5-8 min read • November 14, 2025
## What’s Changing
The IRS, under the direction of Executive Order 14247, will **begin phasing out paper tax refund checks** for individual taxpayers starting September 30, 2025, wherever the law allows. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) This move aims to improve security, reduce fraud, and speed up refunds to individuals. ([irs.gov](https://www.irs.gov/newsroom/topics-in-the-news?utm_source=openai))
## Who Is Most Impacted
- **Digital nomads and U.S. expats** who might not have U.S. banking: Direct deposit into U.S. accounts may not be accessible from abroad.
- **Unbanked or underbanked taxpayers**, including those in rural areas or low-income households without a traditional checking account. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai))
- **Individuals with deeply held religious beliefs or other reasons** for avoiding banking systems. The IRS anticipates exceptions for these groups. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai))
## What You Should Do Now
1. **Provide or update direct deposit information** on your 2025 tax return—even if filing from abroad. This is the most reliable way to ensure timely delivery. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai))
2. If you can’t provide bank info, **request an exception**; eligible under IRS guidance for those who lack banking access or have other valid reasons. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai))
3. For non-filers or extended filers: include direct deposit details when submitting returns or file amended returns using Form 1040-X. ([irs.gov](https://www.irs.gov/faqs/irs-procedures/amended-returns-form-1040x?utm_source=openai))
## Special Considerations for U.S. Citizens Abroad
- Check whether your foreign bank accepts U.S. ACH or electronic transfers.
- If not, explore options like U.S.-based prepaid cards, digital wallets, or application of exceptions. The IRS is expected to provide specific guidance for such cases. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai))
## Key Dates to Watch
| Date | Impact on Refunds and Payments |
|------|-------------------------------|
| September 30, 2025 | Paper refund checks are phased out to the maximum extent allowed under law. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) |
| Tax Return Filing Season 2026 | All returns for the 2025 tax year will require direct deposit or exception to avoid delays. ([irs.gov](https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers?utm_source=openai)) |
## Actionable Tips
- Keep your contact, bank, and address info current in your IRS Online Account.
- If using a U.S. bank, verify your routing and account numbers carefully.
- For U.S. citizens overseas, research whether your foreign bank cooperates with U.S. electronic transfers.
- Consult a tax professional familiar with U.S. laws for expatriates or nomadic lifestyles.
**Bottom line**: The IRS is ending most paper refunds in favor of electronic payments. As a digital nomad, foreign banker, or unbanked taxpayer, you’ll need to plan ahead to avoid delays.