IRS Delays 2026: Which Tax Refunds, Refunds May Be Suspended

If you were counting on a quick tax refund to pay for an upcoming renovation or family vacation, you may be disappointed. The report of Jan. 26 from the Treasury Inspector General for Tax Administration, an independent watchdog, warns that the processing of some tax returns may be delayed due to IRS staff shortages and backlogs.

The IRS says it expects to receive about $164 million in tax refunds for the 2025 tax year before the April 15 deadline. However, according to the memo, the IRS still needs to process nearly 2 million unresolved tax cases from previous years with a workforce that has decreased by about 27%.

Combine that with an executive order requiring government agencies to stop reviewing documents, and you’ve got a recipe for delays.

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So which returns are most likely to be saved? Anything that requires manual handling, including paperwork, amended returns and returns marked for verification of identity or income mismatches. Electronically filed direct returns with direct deposit returns or payments will still be processed on time, especially for early filers who file before the peak filing period in March and April.

There are exceptions. For example, the IRS cannot issue refunds before mid-February for taxpayers who claim the earned income tax credit or additional child tax credit on their returns. And if you’re expecting a refund with a paper check, you can all count on a delay.

Last year, about 6 million refunds – about 7% of the total – were issued by check. But in an effort to modernize payments, the IRS will now freeze refunds for six weeks unless the taxpayer provides their bank account information for direct deposit. Only after those six weeks will the agency issue a paper check.

How to avoid tax refund delays

The best way to help your return be on time is to double-check your return before filing, making sure all forms — W-2s, 1099s and other income documents — match what you reported and that your bank and account numbers are correct.

You should also set up access to an IRS Online Account for easy access to your tax records and any notices that may require your attention. Finally, use available tools such as “Where’s My Refund?” to track the status of your refund. You can see updates as soon as 24 hours after the email is posted or about four weeks after you submit a paper return.

Bottom line: Filing electronically with direct deposit remains the most reliable way to avoid delays this tax season, according to the IRS.