Why Are Tax Refunds Taking Longer This Year?

While the Internal Revenue Service (IRS) aims to issue most refunds quickly, this is not a guarantee. A variety of factors can extend this timeline, from IRS processing capacity to specific details on your tax return. Understanding these potential delays can provide clarity on why a refund might be taking longer than expected.

Key Factors Delaying Tax Refunds This Year

A primary reason for refund delays stems from the operational capacity of the IRS. The agency often contends with processing backlogs from prior tax seasons, which can be compounded by staffing limitations and the use of aging technology infrastructure. This combination of factors can slow down the entire system, from the initial acceptance of a return to the final issuance of a refund.

Certain tax returns are automatically flagged for additional review by law, which introduces a mandatory waiting period. The Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold the entire refund of any taxpayer claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until at least mid-February. This law gives the agency more time to verify eligibility by matching return information with data from employers, such as on Form W-2. Even if only a portion of the refund is related to these credits, the entire amount is held, and taxpayers do not see their funds until late February or early March.

The IRS has also intensified its efforts to combat identity theft and fraudulent refund claims. Its filtering systems screen every return for signs of potential fraud. While these measures are designed to protect taxpayers, they can sometimes flag a legitimate return for additional verification. If this occurs, the refund is paused until the taxpayer can verify their identity, often by responding to a letter from the IRS, which adds time to the overall process.

Filing Choices That Impact Your Refund Speed

Submitting your return electronically is substantially faster than mailing a paper return. The IRS processes e-filed returns much more quickly, with most refunds issued in under 21 days. A paper return can take six weeks or longer to process from the time the agency receives it.

Requesting a direct deposit of your refund into a bank account is the fastest and most secure delivery option. The funds are transferred electronically from the U.S. Treasury directly to your account. Opting for a paper check adds significant time, as it must be printed and sent through the mail, which can take several additional weeks.

How to Check Your Federal Refund Status

The IRS provides tools for taxpayers to monitor the status of their federal refund. The primary resources are the “Where’s My Refund?” portal on the IRS.gov website and the IRS2Go mobile application. These tools are updated once every 24 hours, usually overnight, so there is no need to check the status more than once a day.

To use the tool, you must provide three pieces of information from your tax return: your Social Security Number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact refund amount in whole dollars. This information must match what is on your filed return. You can begin checking the status within 24 hours of the IRS accepting your e-filed return or about four weeks after mailing a paper return.

Once you enter your information, the tool will display one of three statuses. “Return Received” indicates the IRS has your return and has begun processing it. “Refund Approved” means the agency has finished its review, confirmed your refund amount, and provided a date for when it will be sent. “Refund Sent” confirms that the money has been dispatched to your bank for direct deposit or that a paper check has been mailed.

Understanding IRS Notices About Your Refund

If your refund is delayed for a specific reason, the IRS will communicate with you through a formal notice or letter sent by mail. Receiving such a notice means your return has been pulled from the standard processing queue for a more detailed review. It is important not to discard this correspondence, as it contains valuable information regarding the delay.

A common example is the CP05 notice, which informs you that the IRS is verifying items reported on your return, such as your income, tax withholding, or credits. The notice will state that the review could take up to 60 days and that you do not need to take any action unless specifically requested. Read any notice you receive carefully and follow its instructions, which may involve waiting for the review to conclude or submitting additional documentation by a specified deadline.