Tax payment for US citizen living abroad...no more paper checks allowed

[Pablo287]

Hello,

I have a question concerning the recent change that the IRS will no longer accept paper checks for tax payments. 

I'm an US citizen living abroad, and I've never been able to e-file my taxes using TurboTax-I'm always required to print them and send a paper copy along with a check, if I owe taxes.

I have a US bank account, and I've never been able to understand why I've been required to send a paper check all these years. 

Will provision be made this next tax year for paying via direct debit or other electronic method via Turbotax? 

[SteamTrain]

@Pablo287 

I haven't seen such a proposal yet...but..IF such a rule is fully enacted by the IRS, then:

1)  If you still end up having to file by mail, you can instead make your payments using a Direct Debit on the IRS's Direct Pay website instead of mailing a check.  (yeah, you must maintain that USA bank account).   You could have used that DirectPay payment method now for people filing 2024 taxes, even if they haven't enacted that rule. 

Direct Pay with bank account | Internal Revenue Service

2)   Again, if the IRS does implement that...they might  start including D.Debit as part of a newly formatted form 1040 for 2025 taxes next year....but right now, the 2024 1040 only includes Direct Deposit of refunds.

or

3)   Overpay  somewhat during the year, with withholding or quarterly estimated tax payments and always end up with a refund...then no check is needed.

______________

If full enacted (doubtful)...it might raise a  huge, unworkable stink  for the millions of folks who don't have bank accounts and have to use money orders to pay.  A Google AI question/answer says 5.6 million households were unbanked in 2023.

[rjs]

TurboTax cannot provide direct debit on a paper-filed tax return because the IRS doesn't allow it.

When TurboTax asks how you want to pay, select "I will mail a check." That doesn't really mean that you have to mail a check. You can then pay with Direct Pay at the link that SteamTrain posted. Your payment does not have to be sent together with your tax return.

It's not clear why you can't e-file. Living abroad does not automatically prevent e-filing.

[rjs]

Oh, I see that a few months ago you posted that you can't e-file because your wife is a nonresident alien. That explains it.

[mesquitebean]

@ SteamTrain 

I haven't seen a formal IRS news article on it yet, but here's the executive order mandating electronic payments in and out of govt agencies starting Sept. 30, 2025.  There are some limited exceptions.

https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-ba...

The order does exclude "individuals who do not have access to banking services or electronic payment systems;" who must be offered "alternative payment methods" yet to be established.

Another article which mainly talks about govt dropping refund checks from the IRS, but lower down in the article it also talks about also dropping most check payments TO the IRS:

https://www.investopedia.com/paper-check-free-tax-refunds-11718299

From the article:

"Can you still pay taxes by mail?

"In most cases, no. The government is phasing out incoming paper payments, too. That means if you’re currently paying your taxes, fees, or fines by check, you’ll need to start doing so by card or digital wallet beginning later this year, unless you qualify for one of the limited exceptions outlined in the executive order."

[Pablo287]

Thanks to you all for the helpful answers. I really like the community here. 

I've noted this all down, and I'll try to pay via the electronic transfer via the site mentioned above. I would be more than happy to have written my last paper check last year!

I've maintained a US bank account since I moved overseas, and I've been very glad on many occasions. I can only recommend for folks wanting to move overseas that they do so as well.  

Thank you all again.