The Internal Revenue Service (IRS) tax calendar closed its regular period on April 15, 2026, but for a large portion of American taxpayers, it is still open because their tax refunds have not yet arrived.
At the end of May, and even into June, some taxpayers are still filing their returns late, which undoubtedly causes delays in the processing of their refunds. But it’s not just those who filed late who are reporting this problem; those who filed on time are also checking their bank accounts to see if they’ve received a deposit from the IRS.
Tax refunds delayed: The IRS faced staff cuts
The IRS is facing challenging circumstances this year, starting with one of the most significant: the 25% staff reduction mandated by the DOGE (Department of Government Efficiency). This has left the agency with a severely limited capacity to process the large volume of tax returns it receives annually.
According to previous projections, the IRS planned to process around 164 million individual income tax returns for the 2025 tax year.
Furthermore, any backlog of returns that remained unresolved at the close of the previous tax year was carried over directly to the current season. The combination of this accumulated backlog with reduced staffing levels creates conditions that, according to experts consulted by various specialized media outlets, could extend the usual processing times beyond what taxpayers expect. You can imagine the chaos that must be taking place in IRS offices.
The IRS also eliminated tax refunds by physical check
One of the changes with the greatest direct impact on pending refunds this cycle is the phase-out of paper checks as a payment method. The IRS formalized this transition during the 2026 tax season, with the goal of modernizing its payment systems. However, the measure resulted in a significant number of refunds being withheld when the banking information provided by the taxpayer was incomplete, incorrect, or rejected by the receiving financial institution.
The procedure the agency establishes in these cases involves sending a notification—known as a CP53E notice—to the taxpayer’s registered address, granting them 30 days to update their direct deposit information through their IRS online account. If the taxpayer does not respond within that timeframe, the agency may eventually issue a physical check as an alternative, although that process can take up to six additional weeks after the response deadline.
The possibility that a single incorrect digit in the bank routing number could completely halt refund processing turns a minor administrative error into a wait of weeks or months. The IRS recommends verifying bank details before filing your return and checking the Social Security numbers on file to prevent the system from detecting inconsistencies that trigger further audits.
If you claimed a tax credit, your refund will also be delayed
Beyond this year’s operational and regulatory factors, there are a number of situations that historically cause delays and remain in effect in 2026. Taxpayers who claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are subject by law to withholding until mid-February as a fraud prevention measure. If the IRS detects any inconsistencies in those returns after that period, the refund may be held while additional documentation is requested.
The agency warns that it cannot issue a partial refund under any circumstances while one of these loans is under review. The entire payment is withheld until the corresponding verification is resolved. This particularly affects low- and middle-income workers who rely on the EITC as a vital part of their annual financial planning.
Also, returns amended using form 1040-X (to correct returns with errors) require the IRS to refer your case to an agent for a manual inspection; this officer will compare both versions and verify that everything is correct before issuing a tax refund.
There are other factors such as unpaid debts, lack of signatures on paper returns, discrepancies between the data declared and the records that the IRS has from third parties, among several others, that cause delays in sending the tax refund.
