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The New Refund Deposit Timeline: How the ACH System Change Affects Payout Speed

Why You May Wait 1–3 Days After Your Refund Is “Issued”

Taxpayers often assume that when the IRS posts TC 846 – Refund Issued, the money instantly appears in their bank account. But in the 2026 filing season, a quiet but meaningful shift in the Automated Clearing House (ACH) banking network has changed how quickly refunds deposit.

Even when the IRS releases the refund, the speed of the actual deposit now depends on your bank’s internal posting schedule, which can cause anywhere from a 1 to 3 business-day delay.

TC 846 Means the IRS Has Sent the Money — Not That You’ve Received It

When you see:

TC 846 – Refund Issued
with a specific date

that means the IRS has completed its part:

  • funds have left the IRS Treasury account
  • the IRS has transmitted the deposit into the ACH system
  • your refund is on its way to your bank

At that point, the IRS cannot speed it up or change anything.
The next phase belongs entirely to the banking system.

How the New ACH Processing Timeline Works

Here’s what happens between IRS release and final deposit:

  1. IRS sends refund funds to ACH
  2. ACH verifies routing and account information
  3. ACH sends funds to your bank
  4. Your bank conducts fraud screening and verification
  5. Your bank posts the credit to your account

Banks are increasingly using an additional “risk-assessment hold” step to monitor:

  • unusual deposit sizes
  • first-time refund deposits
  • mismatched name/account situations
  • routing/account changes
  • prepaid card deposits

These checks can add 12–72 hours of delay.

Why Some People Get Their Refund Same-Day and Others Wait Days

Different banks have different posting policies:

Fast deposit banks
(prepaid cards and online banks):

  • Chime
  • Cash App
  • NetSpend
  • Green Dot
  • Go2Bank

These often post refunds within hours of IRS release.

Slower, traditional banks:

  • Wells Fargo
  • Chase
  • Bank of America
  • PNC
  • TD Bank
  • US Bank

These may hold refunds for 1–3 days due to internal verification checks.

Two taxpayers can have the same TC 846 date —
one gets the money instantly,
the other waits three business days.

Weekend & Holiday Complications

ACH does not complete transfers on:

  • weekends
  • bank holidays
  • federal closures

So the deposit timing may slide if:

  • TC 846 posts on a Friday
  • the banking cycle misses cutoff
  • a holiday intervenes

Example:
TC 846 date: Friday
Deposit may not appear until Monday or Tuesday.

Why Banks Delay Fast-Deposited IRS Funds

Banks hold deposits when:

  • the amount is unusually high
  • the account is new
  • the account was dormant
  • the name on the deposit differs from the account name
  • suspicious account activity exists
  • fraud prevention models trigger

Banks now treat federal government ACH deposits like any other incoming transfer — not automatically “trusted and instant.”

What You Can Do to Avoid Deposit Delays

To minimize holds, ensure:

  • the bank account is solely in your name or MFJ with spouse
  • you have an established deposit history
  • the account has not changed since last year’s refund
  • your routing and account numbers were entered correctly
  • no name mismatch between return and bank account

Using direct deposit instead of paper checks remains mandatory for fastest refund, but bank processing now matters more than ever.

  • TC 846 means the IRS released the money
  • The ACH network then routes the funds
  • The bank then approves and posts the deposit
  • The final delay is usually 1–3 business days, depending on your bank’s internal processing

Understanding this system explains why taxpayers with the same refund date experience different real-world deposit arrival times.

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