On March 25, 2025, a major shift in tax refund processing was set in motion when President Trump signed an executive order instructing the U.S. Department of the Treasury to discontinue paper check disbursements. According to the order, paper refund checks will no longer be issued by the IRS after September 30, 2025. Instead, tax refunds will be processed electronically and deposited directly into a U.S.-based bank account. This change is part of a broader federal push to modernize payment systems and eliminate manual disbursements, with limited exceptions. As a trusted accounting firm, we offer tailored solutions for our clients. Our CPA firm in Sarasota specializes in international tax issues. We’re here to help clients understand how this change might affect tax filings, especially those involving international mobility.

Impact on Taxpayers Without U.S. Bank Accounts

While many U.S. taxpayers are already familiar with direct deposit, the elimination of paper checks could pose challenges for certain groups—particularly clients of accounting firms. Non-U.S. individuals and global assignees who do not maintain a U.S. bank account may need additional consultation. Because the IRS only issues direct deposits to accounts with U.S. routing numbers, foreign nationals must either open and maintain a U.S. bank account or explore alternative options, such as international wire transfers or digital wallets. These alternatives often come with added fees, complicating preparation for taxpayers already navigating complex cross-border tax situations.

What Global Mobility Programs Should Know

Companies with global mobility programs must prepare for the downstream effects of this change. Many employers facilitate U.S. tax payments and refunds on behalf of their globally assigned employees. However, current IRS rules limit the number of refunds that can be issued to the same bank account. This restriction makes it difficult for programs to centralize tax refund handling. Going forward, cross-border employees will typically need to receive their refunds in a personal U.S. account, then transfer the funds to their employer—adding complexity and potential delays to the process.

Steps Employers Should Take Before the Deadline

If your organization sponsors globally mobile employees, now is the time to act. Preparatory steps may include tax planning and consultation with professionals.

• Reviewing your tax settlement and reimbursement procedures
• Evaluating secure digital payment platforms for tax planning purposes.
• Advising employees on maintaining U.S. bank accounts beyond their assignment
• Consulting with a certified public accountant can provide valuable insights. Sarasota tax accountant to update compliance workflows and enhance tax planning strategies.

The executive order does include provisions for limited exceptions for individuals who cannot access electronic banking services, but guidance on how these exceptions will be defined has not yet been released. Further regulations are expected, impacting how firms located in Sarasota operate.

Work with a Trusted Sarasota CPA for Guidance

At Cavanaugh & Co, our team of experienced professionals is ready to help you navigate these upcoming changes. Whether you’re a global employer looking for assistance with cross-border payroll issues or an individual taxpayer in need of support, our CPA firm located in Sarasota, Florida specialists can provide the insight and planning needed to stay compliant and avoid costly mistakes. For personalized guidance on this or any tax-related matter, contact our Sarasota CPA firm. Contact us today for a consultation.