Taxpayer Advocacy Panel program to go on temporary administrative suspension

For more than 20 years, the Taxpayer Advocacy Panel (TAP), through its team of dedicated volunteer members, has served a vital function in our tax system by advocating for the interests of taxpayers and offering critical feedback to the IRS. The insights and concerns raised by TAP members have historically played an influential role in shaping policies and redefining services that directly affect taxpayers across the nation and abroad. At this time, however, the TAP program will enter a temporary administrative suspension, effective February 13, 2026.

This will include a suspension on the acceptance of new issues and concerns related to improving IRS processes and taxpayer service. Please return to this page for additional updates as they become available.

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Project 01119

Foreign direct bank deposits

Project Statement:

Allow non-U.S. direct bank deposits for people filing from foreign countries. Social Security Administration and railroad retirement board can do it, why not IRS

Goal Statement:

Enable international taxpayers to be able to pay their tax due and receive refunds from the IRS using a non-U.S. bank account. The IRS committed to “Provide payment options to taxpayers abroad and foreign governments. Allow those with foreign bank accounts and foreign currency to make and receive payments,” in the 2023 IRS Strategic Operating Plan. However, the report didn’t commit to achieving this specific project by a certain date and so the Taxpayer Advocacy Panel requests that this functionality is expedited to make it easier for the IRS and international taxpayers to make and receive payments.

RECOMMENDATION 01119-1

RECOMMENDATION TEXT:

Prioritize the ability for international taxpayers to make tax payments directly to the IRS via a non-U.S. bank transfer. International taxpayers struggle to pay their tax because the IRS doesn’t accept payments from a non-U.S. bank account. This puts undue stress and burden on international taxpayers, delays the taxpayer from being able to make the payment and the IRS to receive it, potentially subjecting the taxpayer to interest if they struggle to make the payment by the deadline. The IRS also doesn’t accept tax payments when an international taxpayer tries using a Mastercard or Visa debit or credit card from an account that is registered with a non-U.S. address or a non-U.S. financial institution. The majority of international taxpayers do not have a U.S. bank account or U.S. credit card since most U.S. banks don’t accept non-U.S. residents as customers. The payment instructions for how to make a payment from a non-U.S. bank account to the IRS are difficult to understand: https://www.irs.gov/individuals/international-taxpayers/foreign-electronic-payments-tax-type-codes Rarely is an international taxpayer able to understand or make a successful payment using these instructions due to how complicated and confusing they are. Instructions should be written in a clear and concise manner just like any other international bank transfer service, for example: https://wise.com/help/articles/2977959/how-do-i-send-money-with-wise or https://help.revolut.com/help/transfers/outbound-transfers/how-to-send-money-to-another-bank/how-do-i-send-money-to-a-bank-account/

IRS Action: Recommended

RECOMMENDATION 01119-2

RECOMMENDATION TEXT:

Prioritize sending refund payments for international taxpayers to a non-U.S. bank account. Currently, the majority of international taxpayers do not have a non-U.S. bank account and so they’re unable to enter transfer details on Form 1040 in the case of a refund. When no bank transfer details are included on the 1040, this triggers a check to be sent to the address on the 1040, even if it means sending the check internationally. The majority of international taxpayers are unable to cash a US check due to checks being phased out and even banned in the majority of the world due to it being viewed as an unsafe money transfer method and technology has evolved so that electronic bank transfers are the standard. See: https://www.atlantafed.org/-/media/documents/banking/consumer-payments/research-data-reports/2023/07/14/use-of-checks-in-selected-countries.pdf It is difficult if not impossible to cash a US check, even from the US government, outside of the United States. Many people struggle to find a way to cash it, which takes time, therefore delaying much needed funds for the taxpayer’s pocket and in extreme cases the taxpayer can’t find a way to cash the check at all and therefore never gains access to the funds. This puts international taxpayers at a clear disadvantage if there are no alternative methods beyond a check to receive the cash.

IRS Action: Recommended

RECOMMENDATION 01119-3

RECOMMENDATION TEXT:

Allow taxpayers to receive a transfer to a non-U.S. bank account if they receive a check and they’re unable to cash it in their country of residence. The taxpayer should be able to enter their non-U.S. bank account details on Form 1040 or set up default payment details using their online IRS account. Often international taxpayers receive a check for a refund and they’re unable to cash it in their country of residence. When they call the IRS, they can cancel the check and the IRS can then issue a new check, but the IRS isn’t able to set up a bank transfer so that the taxpayer can gain access to the funds unless U.S. bank account details were included on Form 1040 at the time it was submitted. This makes it difficult for international taxpayers to be able to access much needed funds in a timely manner, if at all. Cancelling a check and allowing a non-U.S. transfer will help international taxpayers access the refund.

IRS Action: Recommended