💳 IRS Goes Digital: AICPA Sounds the Alarm 🛎️

The IRS is gearing up to stop cutting paper checks for tax refunds and benefits by September 30, 2025—thanks to Executive Order 14247. The AICPA is all in favor...but warns it might go sideways fast if done too abruptly.

Here’s the deal as the IRS goes digital—perks and pitfalls, served Taxish-style:

✅ PROS: Why digital payments = good news

• Efficiency boost: Direct deposits are faster, cheaper, and way harder to lose or steal.

• Cost savings: No more paper, postage, or check-printing headaches at the Treasury.

• Modern move: Aligns IRS with the times—which is overdue, TBH.

⚠️ CONS: Not so fast—hiccups incoming

1. Unbanked and elder folks left out: Many seniors, the unhoused, and “unbanked” folks may not have U.S. bank accounts, making electronic-only payments risky.

2. Foreign refunds? Sticky situation: International taxpayers may get caught in red tape, as ACH transfers don’t play well across countries.

3. Refund errors get complicated: When a paper check bounces back, you can just return it. With direct deposit? You might get stuck with an unfixable refund error. 

4. Tight deadline stress: With a September 30 timeline, many filers (especially those who extended their 2024 returns until October 15) could get caught in the changeover. 

🧭 The AICPA’s Wish List

To soften the blow, AICPA suggests:

Proposal	Benefit
Exempt vulnerable groups (non-U.S. residents, seniors, unbanked)	Keeps paper checks on deck when needed
Delay cut-off deadline or add transition rules	Gives IRS time to communicate changes
Expand Treasury's e-payment tools	Allows businesses to submit payments for individuals seamlessly
Define clear exception rules	So taxpayers know when they can ask for a paper check

ℹ️ Bottom Line

The digital-only refund route makes sense—but not if it leaves people stranded or in legal limbo. AICPA is basically saying, "“By all means, IRS, bring your systems into the 21st century—just do it thoughtfully, with backup plans, grace periods, and alternatives for taxpayers who may struggle with the changes.”

Taxish says: Good vibes on progress. But don’t forget the human experience. 💙