If your refund is delayed past the normal 21-day window in 2026, chances are you triggered one of the IRS’s new automated digital filters. The IRS expanded its machine-driven review system this year, and certain filing conditions almost guaranteed a return would get flagged for additional verification.
Here are the four most common red-flag triggers that pushed perfectly valid returns into extended review.
1. Mismatched AGI From the Prior Year
This was the #1 algorithmic mismatch this season.
The Adjusted Gross Income (AGI) from the prior year is used as a digital identity check when filing electronically.
If:
- You entered the wrong prior-year AGI
- Your prior tax preparer used estimated AGI
- You filed an amended return last year
- IRS updated your 2024 record after filing
- You had a late-posted W-2 or 1099 in 2024
Then the IRS system sees a discrepancy and places a verification hold.
This often leads to transcript code:
TC 570 — Additional Review
2. Claiming a New OBBB Deduction for the First Time
The OBBB deductions — including:
- Overtime deduction
- Tip income deduction
- Senior deduction
- Auto loan interest deduction
— are brand new, and the IRS is monitoring them aggressively.
Digital flags are triggered when:
- the deduction appears for the first time
- the claimed amount is high
- documentation is not attached or referenced
- W-2 Box 14 codes don’t back it up
- the taxpayer is self-employed with net-loss activity
This doesn’t mean you did something wrong.
It simply means the IRS wants to verify eligibility.
In many cases, the IRS awaits third-party confirmation — especially from employers and payroll data.
3. Large Refundable Credits (EITC / ACTC)
Refundable credits are the IRS’s fraud-protection hotspot.
When returns claim:
- Earned Income Tax Credit (EITC)
- Additional Child Tax Credit (ACTC)
- Premium Tax Credit (PTC)
- American Opportunity refundable portion
The IRS algorithm runs deeper cross-checks on:
- income level
- number of dependents
- SSN eligibility
- prior-year credit claims
- wage consistency
This is especially true when:
- refund exceeds $8,000
- credits make up more than 70% of refund
- income dropped dramatically vs prior year
- dependents changed
These returns are highly susceptible to a delay — not because of wrongdoing, but because IRS law mandates stronger verification.
4. Failure to Use an IP PIN When Recommended
The IRS has begun pushing taxpayers to adopt the:
Identity Protection PIN (IP PIN)
This 6-digit number helps block identity-theft claims.
If:
- you previously had an IP PIN
- the IRS suggested you get one
- your SSN has been involved in prior ID-theft patterns
- your filing history matches risk-flags
Then filing without an IP PIN increases the odds of:
- return flagged as suspicious
- refund held for identity validation
- TC 570 added
- request for verification letters sent
The absence of an IP PIN where one is expected is now one of the IRS’s most significant digital-identity flags.
What Happens Behind the Scenes
When one or more of these digital indicators are triggered:
- the return is routed for review
- WMR likely shows “Still Processing”
- transcript may show a silent hold
- no deposit date is issued
- taxpayer must wait out the review period
It may not lead to an audit —
but it does lead to manual processing, which is slower.
How to Avoid These Delays Next Season
- Always verify your prior-year AGI from your IRS transcript
- If claiming OBBB deductions, ensure employer documentation matches
- Double-check dependent SSNs
- If offered an IP PIN — accept it
- Avoid dramatic last-minute changes without documentation
The cleaner your digital footprint,
the fewer system flags your return triggers.
Refund delays in 2026 weren’t random — they were algorithmic.
The four new red-flag triggers were:
- Mismatched AGI from last year
- First-time OBBB deduction claims
- High refundable credits like EITC/ACTC
- Not using an IP PIN when recommended
Understanding these not only reduces stress —
it gives taxpayers real control over the filing process.
