KPMG article: How digital refunds affect global mobility programs
Digitization of tax refund payments scheduled to go into effect on September 30, 2025
Certain employers with cross-border assignees may be unprepared for the impending digitization of tax refund payments by the IRS, which President Trump has ordered to go into effect on September 30, 2025.
This change especially affects employers that receive tax refund checks on behalf of their employees as part of a tax equalization process. The shift to digitization may pose a collection risk for employers that rely on paper checks to ensure the timely collection of tax refunds belonging to them under a tax equalization policy.
Read a May 2025 article* prepared by KPMG LLP tax professionals that examines current industry practice, the challenges posed by the digitization of IRS refund payments, and potential workarounds to reduce the risk of uncollected repayments from employees under tax equalization programs.
* This article appears in Tax Notes Federal (May 19, 2025) and is provided with permission.