What’s Causing Delays and How They Affect Next Tax Season

Every year, millions of taxpayers wait for a federal tax refund to help with bills, rent, childcare, debt payments, and everyday expenses. But refund timing is not the same for everyone. In fact, many returns are delayed automatically due to federal law, IRS review filters, identity verification, and increased fraud checks. These issues affect millions of families, especially early filers.

Here is what is causing widespread refund delays and why so many taxpayers will wait longer than expected.

The PATH Act Causes Built-In Delays

Refunds involving certain refundable credits are delayed by law. The PATH Act requires the IRS to hold refunds that claim:

• Earned Income Tax Credit (EITC)
• Additional Child Tax Credit (ACTC)

Even if your return is accepted early, the IRS cannot release the refund until after the PATH Act hold period. This rule slows refunds for millions of taxpayers every year.

Refund Fraud and ID Theft Are On the Rise

Identity thieves continue to target tax season because stealing a Social Security number and filing first can generate an illegal refund before the real taxpayer even files. To prevent this, the IRS has implemented stronger identity verification which can delay returns while information is reviewed.

Common triggers include:

• new addresses
• bank account changes
• unusual income
• multiple dependents
• mismatched Social Security information

IRS Fraud Filters Are Becoming More Aggressive

IRS systems now flag millions of returns every year for possible:

• fake wages
• identity theft
• dependent fraud
• suspicious refund claims
• unusual banking activity

Returns flagged for review often move slowly while data is verified.

Wage Verification Takes Time

IRS must match W-2 income with employer records before releasing refunds involving certain credits. Employers submit wage data to the IRS, but not all data arrives immediately. Early filers are often held automatically until matching completes.

Millions of Returns Require Manual Review

The IRS experiences high return volume early every tax season. If something is unclear or mismatched, a return may require manual review. These reviews slow refunds significantly because IRS staff must verify information before approval.

Paper Filers Wait the Longest

Taxpayers who mail paper returns should expect significantly longer processing times. Paper returns require:

• scanning
• manual data entry
• physical handling
• identity confirmation
• additional review

Even the IRS recommends electronic filing for faster refunds.

Refund Approvals Happen in Batches

Where’s My Refund does not update in real time. Updates occur in batches, usually overnight. Many taxpayers do not see movement for days or weeks even when their return is processing normally.

New IRS Security Measures Slow Some Refunds

IRS modernization includes extra:

• authentication
• fraud screening
• suspicious activity checks
• banking verification

All of these steps slow refunds for certain taxpayers, especially early filers or households claiming refundable credits.

Millions Are Affected Every Year

For many working families, PATH Act rules and fraud screening are unavoidable. These delays affect:

• early filers
• families claiming credits
• taxpayers using refund advances
• people with changed addresses
• taxpayers with dependents
• households using prepaid cards

Millions will wait longer than the traditional 7- to 21-day refund timeline.

Even if you file early and your return is accurate, many taxpayers should expect refund delays due to:

• PATH Act rules
• identity verification
• wage matching
• manual review
• fraud screening

These delays are normal, widespread, and built into IRS processing. Understanding the timeline ahead of filing can help reduce frustration and prepare households for realistic refund expectations.