What to Know About IRS Processing Delays
Understand the context behind a delayed tax refund. Our guide covers factors that impact IRS processing and the practical steps for getting clear answers.
The Internal Revenue Service (IRS) processes most tax returns without issue, but delays can stem from various sources. Understanding the potential causes, from taxpayer errors to institutional challenges, provides context for why a refund may be held up. This knowledge helps in navigating the tools to check a refund’s status and knowing the appropriate steps to take if a delay becomes prolonged.
Common Reasons for Tax Return Delays
A delayed refund can originate with the tax return. Simple mistakes, like mathematical errors or transposed Social Security Number (SSN) digits, can flag a return for manual review. An incomplete filing, where forms are missing, will also halt processing. For example, if a self-employed individual fails to attach a Schedule C, the return is incomplete and requires correction before a refund is issued.
Certain tax credits are frequent sources of delays because they require additional verification. The Protecting Americans from Tax Hikes (PATH) Act mandates that the IRS cannot issue refunds for returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. This hold applies to the entire refund, not just the portion related to these credits. Affected taxpayers who file electronically and use direct deposit can often expect their funds by early March.
A processing slowdown can also be caused by an identity theft flag. The IRS uses security filters to detect suspicious returns, and if a filing triggers these filters, the agency will issue a letter, often a 5071C Letter. This letter requires the taxpayer to complete an identity verification process online or by phone before the IRS will continue processing the return. This protective measure adds weeks to the refund timeline.
Filing a Form 8379, Injured Spouse Allocation, also leads to a longer wait. This form is used when a joint refund is seized to pay a past-due debt, such as a student loan, that belongs to only one spouse, allowing the other spouse to reclaim their portion. Because this allocation requires a manual calculation, it adds significant processing time. Taxpayers can expect a delay of about 11 weeks if filing with an electronic joint return or 14 weeks if filing with a paper return.
Systemic Factors Contributing to IRS Backlogs
Agency-wide challenges contribute to processing slowness. The IRS has historically operated with staffing shortages, which impacts the speed at which returns can be processed, especially those requiring manual review.
The agency’s reliance on outdated technology is another factor. Some core systems are decades old and operate on legacy programming languages, making it difficult to implement changes to the tax code. When new legislation is enacted, the IRS must often create manual workarounds, which slows down the entire system.
A persistent backlog of unprocessed paper returns creates a bottleneck. While most taxpayers file electronically, millions still file by mail. Each paper return must be manually transcribed into IRS systems, a labor-intensive process that is far slower than the automated intake of an e-filed return. This paper inventory consumes substantial resources and contributes to delays.
How to Check Your Refund Status
The IRS provides two digital tools to monitor your refund status: the “Where’s My Refund?” tool on the IRS.gov website and the IRS2Go mobile app. The data in these systems is updated once every 24 hours, so checking more frequently is not necessary.
To use these tools, you will need your Social Security Number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact refund amount you claimed. This information must be entered precisely as it appears on your tax return.
The tool will display one of three statuses. “Return Received” indicates that the IRS has your return and has begun processing it. “Refund Approved” means the IRS has finished processing your return, approved the refund, and will often provide a projected payment date.
The final status, “Refund Sent,” confirms that the payment has been issued. It may take up to five business days for a direct deposit to appear in your account or several weeks for a paper check to arrive by mail.
Steps to Take When a Delay Persists
If online tools do not provide a resolution, you may need to contact the IRS. Wait to call until it has been more than 21 days since you e-filed or more than six weeks since you mailed a paper return. Before calling, gather all relevant documents.
When you call, you should have certain information available. This includes:
- A complete copy of the tax return in question (Form 1040)
- The Social Security numbers and birth dates for yourself, your spouse, and any dependents
- Your filing status
- Any notices or letters you have received from the IRS
- The exact refund amount you are expecting
The IRS provides an automated Refund Hotline at 800-829-1954 to check your status without speaking to an agent. To speak with a representative, the primary phone number for individuals is 800-829-1040, but be prepared for potentially long wait times.
If your issue remains unresolved or you are facing a significant financial hardship because of the delay, the Taxpayer Advocate Service (TAS) may be able to help. TAS is an independent organization within the IRS that assists taxpayers with problems causing financial difficulty.