Melissa Wiley was quoted in a Thomson Reuters Checkpoint article titled “Paperless Transition Brings Refund Delay Concerns.”
The article explores the impact of a 2025 executive order mandating a transition to electronic payments for federal disbursements. As a result of this executive order and the transition away from paper checks, tax refund checks from the IRS will be delayed for the 2025 tax year. Representatives Danny Davis (D-IL) and Terri Sewell (D-AL) of the House's tax-writing committee expressed concern that taxpayers who receive their refunds via paper check may have to wait over 10 weeks to receive them this year.
"The government does not appreciate how difficult it is for some populations to open a bank account or how much they depend on timely refunds," Melissa said regarding the shift to electronic payments.
Several vulnerable groups rely on paper checks, such as elderly taxpayers, disabled people, immigrants, and victims of domestic violence. These populations may be under-banked or in situations where it is risky to share their banking information.
"This policy is harmful in many ways, as we saw play out when we were serving low-income taxpayers in Alaska,” Melissa said of her recent trip to assist low-income taxpayers in rural areas. “Most of those taxpayers receive refunds, which get them through the leaner months in the late winter. This year, we had to tell them that they weren't going to get those refunds for many months unless they could come up with a bank account."
Additionally, electronic payments can be difficult to arrange for taxpayers who live abroad: foreign banks often cannot process IRS payments, and the agency does not regularly offer international electronic transfers.
The article noted that Representatives Davis and Sewell are seeking more details on how affected taxpayers can expedite receipt of their paper check refunds.
The tax-writing committee is also exploring whether taxpayers are eligible for interest payments on delayed tax refunds, as the IRS has 45 days from April 15th to process refunds. If paper check refunds are delayed up to 10 weeks, Melissa said “[It] will result in significant interest payments to taxpayers who were left waiting for their refunds for excessive periods of time.”
"Not only do I think it is bad policy given the multitude of reasons that people cannot have their refund direct deposited, [but] I expect this will also end up costing the government more in interest they will owe than it will have been worth," Melissa said.
You can learn more about the executive order and refund check delays by reading the complete article here.
About Melissa
With more than 20 years of experience in tax law, Melissa has represented a diverse range of clients, from large corporations to high-net-worth individuals, in complex disputes with federal and state taxing authorities. Known for her calm, empathetic style, Melissa excels at distilling intricate tax issues into clear, actionable insights — helping her clients efficiently resolve disputes and focus on what matters most in their businesses and lives.