A Complete Guide to IRS Refund Delays Beyond the PATH Act
For most taxpayers, the IRS issues refunds in 21 days or less, especially when filing electronically with direct deposit. But every year, millions of returns hit unexpected delays that go far beyond the PATH Act hold for EITC/ACTC filers.
If your refund stops moving or “Where’s My Refund?” shows no new updates, there’s usually a specific reason behind it. Understanding the most common IRS delay triggers can help you file a clean return, prevent unnecessary review, and avoid weeks of waiting.
Below are the top five reasons the IRS places a hold on tax refunds, plus practical steps to avoid them.
1. Identity Verification (ID Verification or Letter 5071C)
Identity verification is one of the leading causes of refund delays, affecting both early filers and those with previously accepted returns.
The IRS may require additional verification when:
- Your return’s identity details do not match IRS records
- Your return is flagged by fraud-detection filters
- You changed your address, bank, employer, or filing pattern
- A dependent’s SSN appears on another return
- The IRS suspects unauthorized filing activity
When verification is needed, the IRS typically issues:
- Letter 5071C (most common)
- Letter 4883C
- Letter 5747C (in-person verification)
Your refund is frozen until the verification is completed.
How to Avoid Identity Verification Delays
- Make sure your SSN, full name, and filing status match prior-year filings
- Keep consistent financial and employment details when possible
- Avoid filing from new IP addresses or devices if someone else is preparing the return
- Ensure all dependents have work-eligible SSNs
- Use secure and reputable tax software
How to Resolve It Quickly
- Complete the IRS online verification portal
- Have prior-year returns, ID, and wage documents ready
- Respond before the deadline to prevent longer processing delays
2. Transcript Codes TC 570 and TC 971 (Additional Review or Pending Action)
On your IRS transcript, codes TC 570 and TC 971 are two of the strongest indicators that your refund has been placed on hold.
What TC 570 Means
TC 570 is an “additional account action pending” hold. It stops your refund from being released while the IRS investigates:
- Earned income mismatches
- Wage and withholding errors
- Dependent or custody disputes
- Suspected identity issues
- Credit calculation problems
- Math errors
- Delayed employer W-2 filings
What TC 971 Means
TC 971 is a notice or action indicator that often accompanies TC 570. It can signal:
- IRS letters being issued
- Additional documentation required
- A return under review
- A correction or adjustment pending
How to Avoid TC 570/971 Delays
- Triple-check wage information against W-2 forms
- Ensure dependents meet IRS rules and no one else can claim them
- Keep consistent employer and income data
- File electronically to avoid transcription errors
- Respond immediately to any IRS letters
If you do see these codes, your refund will not move until a new code (often TC 571 or TC 572) releases the hold.
3. Math Errors or Mismatched Information
Math errors automatically trigger delays because the IRS must adjust your return manually. This includes:
- Incorrect totals
- Mistyped SSNs
- Incorrect filing status
- Missing dependents
- Wrong credit amounts
- Incorrect Earned Income Credit or Child Tax Credit calculations
When the IRS makes a correction, you may receive:
- A CP11 Notice (balance due after adjustment)
- A CP12 Notice (refund adjusted)
Your refund pauses until the correction is finalized.
How to Avoid Math-Error Delays
- Use up-to-date IRS-approved tax software
- Double-check dependents and SSN entries
- Ensure withholding and W-2 amounts match exactly
- Avoid rounding errors
- Follow IRS worksheets for credits and deductions
Electronic filing is the simplest way to avoid math-related delays.
4. Amended Return Conflict (Needing to File an Amended Return or Prior Amendment Pending)
If the IRS believes your original return is missing information or incorrect, they may require an amended return (Form 1040-X). This situation can arise when:
- Your employer sends late W-2 corrections
- You forgot income from a side job or gig work
- You received a corrected 1099
- You claimed a dependent incorrectly
- You omitted credits or deductions
Additionally, if you previously filed an amended return for the prior tax year and it is still being processed, it can affect your new refund due to overlapping account adjustments.
How to Avoid Amended-Return Delays
- Wait for all wage documents before filing
- Verify dependent eligibility
- Review gig income and digital payment 1099-K forms
- Avoid filing early if expecting corrections
- Match all documents to your IRS wage transcript when possible
If an amendment is required, the IRS will place a hold until the correction is complete.
5. Wage and Income Verification (Employer Mismatches)
Every return is matched against employer-filed W-2s and 1099s. If your reported income does not match IRS records, your refund will be delayed for verification.
The IRS uses wage data from:
- W-2 forms
- 1099-NEC and 1099-MISC
- 1099-K digital payment platforms
- 1099-G unemployment reporting
- 1099-R retirement income
- SSA records
When mismatches appear, the IRS will pause your refund and may issue a notice.
How to Avoid Income Verification Delays
- Do not estimate income
- Wait for every W-2 and 1099 before filing
- Report all gig, platform, and side-work income
- Verify employer information is accurate
- Compare documents to your IRS online account transcript
Income verification mismatches are one of the fastest ways to fall into long delays.
How to Prevent Refund Holds: Practical Tips for 2026 Filers
To reduce the risk of a 21-day delay:
- File electronically with direct deposit
- Double-check dependent SSNs
- Report all income, including gig work and tips
- Ensure W-2 and 1099 forms match IRS records
- Respond quickly to any IRS letter
- Use IRS transcripts to verify wages before filing
- Avoid early filing if expecting corrected documents
Most delay triggers are preventable with proper documentation and accuracy.
The IRS can issue refunds in under three weeks, but millions of taxpayers experience delays due to identity verification, mismatched income, transcript holds, or the need to amend their return. By understanding the most common delay triggers and preparing in advance, you can file a cleaner return and avoid unnecessary holds that stall your refund.
Accuracy and documentation remain the strongest tools to keep your refund on track.
