What’s Going On With Tax Refunds in 2025? Big IRS System Updates You Need to Know!

2025 has brought a wave of major updates to the IRS systems, and taxpayers across the country are starting to notice the changes—especially those still waiting for their refunds. These updates aren’t just cosmetic—they directly affect how you track your refund and when you might actually receive it.

Let’s break down what’s new and why these updates are creating buzz among refund watchers and tax professionals alike.

🔄 New Refund Status Messages Rolled Out in April 2025

In the first week of April, the IRS quietly rolled out a revamped refund status system on both Where’s My Refund and the IRS2Go mobile app.

Gone are the familiar “status bars” we all watched like hawks. In their place is a newly designed status bar and updated messaging, which gives a slightly more modern—but sometimes more confusing—snapshot of your refund’s progress.

So if you’re checking the IRS site and thinking, “This looks different”—you’re right. It is. The language and flow of updates have shifted, likely in an effort to improve transparency (and reduce call center overload).

🧾 Transcript Format Overhaul in May 2025

The second wave of updates arrived in the first week of May. The IRS has rolled out a new online tax transcript format—and it comes with some unexpected changes.

One of the most notable updates? The timeline associated with the 846 Refund Issued code has changed dramatically.

In the old format:

• If your 846 refund issued code posted on a Friday, the deposit date was usually set 5 days out (typically the following Wednesday).

In the new format:

• That same 846 code now comes with a deposit date 17 days out from the issue date.

This change has left many taxpayers confused—especially those who are used to seeing their refunds land in their accounts well before that posted date.

⏱️ Will You Really Have to Wait 17 Days for Your Refund?

This is the big question — and we’re hearing lots of theories and personal experiences from taxpayers:

1. Some people are still getting their money early — sometimes just hours after the 846 code appears, especially if they use fast-processing banks or prepaid card services.
2. Others are seeing their banks hold the funds until the actual date shown next to the 846 code on the new transcript.

So, what gives?

💡 Here’s one possibility: The IRS may be pushing out the refund issue dates on paper to give themselves more processing leeway or to match up with new bank deposit standards. It may also be in response to tax services like TurboTax and others, who advertise “get your refund 5 days early.” If the IRS puts the official deposit date 17 days out, and you get it in 5 days, it makes those services look extra fast — even though you’re just getting it on the same timeline you always have.

💬 What This Means for Taxpayers

Don’t assume a delay just because the date is further out—it may be more of a “safe estimate” than a fixed arrival time.

Don’t panic if your refund date is 17 days out—you might still see your deposit sooner.

Monitor your bank closely, especially once your transcript shows the 846 code.

This is a big shift in how refunds are tracked and timed—and it affects millions of taxpayers. That’s why it’s more important than ever to:

• ✅ Check your transcript regularly
• ✅ Stay informed about IRS system updates
• ✅ Understand how your bank or financial institution handles direct deposits
• ✅ Talk about your experience—because the more we know, the better we can help each other

Are you:

• Still waiting for your refund?
• Noticing the new 17-day gap on your transcript?
• Getting your refund earlier than the posted date?

Let us know when you filed and what you’re seeing! Sharing your experience helps the whole community stay informed and supported while navigating these 2025 refund delays and system changes.

And most importantly, help spread the message: the IRS systems have changed — and it could impact when you actually see your money.