You could see a tax refund take weeks longer than usual this filing season because a Trump-era rule shifts how the IRS issues refunds and reduces reliance on paper checks. If you still expect a paper check or don’t set up direct deposit or digital delivery, your refund could be delayed by several weeks as the agency phases out mailed checks and adjusts staffing and processing.
They should pay attention to what the rule changes require, why staff reductions and hiring limits matter during peak season, and what steps can speed payment. The article will explain how the new rule works, who will be affected, and practical actions to help avoid a long wait.
How the New IRS Rule Will Affect Tax Refunds
The rule changes shift timing and delivery methods for refunds and add new verification steps for certain returns. Taxpayers who used direct deposit in prior years may see faster processing than paper checks, but additional checks tied to Executive Order requirements can add weeks for many filers.
Details of the Executive Order Signed by President Trump
The executive order (March 2025) directed the Treasury and the IRS to modernize payment flows and tighten verification for refunds, with goals to reduce fraud and increase traceability. It requires new identity- and account-verification steps before refunds can be released for some returns, and it gave the IRS authority to phase in those checks during the 2026 tax season.
Those verification steps include matching taxpayer-provided bank information against federal payment systems and flagging returns that meet risk criteria for manual review. For returns that trigger manual review, the IRS has said processing can be delayed by several weeks. The order also encouraged digital-first delivery, which affects how the IRS prioritizes refunds.
Direct Deposit Versus Paper Check Refund Times
Direct deposit remains the fastest delivery method when returns clear automated checks. The IRS continues to push direct deposit; in 2025 about 93% of refunds went that way. When bank-account verification passes, direct deposit refunds can be issued in the agency’s usual electronic window.
Paper checks face two disadvantages: they require additional mail handling and printing steps, and they are more likely to be held for manual review under the new verification rules. Taxpayers expecting a paper check should plan for extra transit and processing time, often adding days to weeks compared with direct deposit.
IRS Guidance and Communication for Taxpayers
The IRS published guidance describing which returns are more likely to be subject to the new verifications and urged taxpayers to use direct deposit. The agency updated its online pages with FAQs and recommended that filers confirm their bank routing and account numbers to reduce verification flags. See the IRS newsroom summary for details on the legislation and agency resources: IRS.gov resources can help answer questions about the One, Big … (https://www.irs.gov/newsroom/irsgov-resources-can-help-answer-questions-about-the-one-big-beautiful-bill).
The IRS also said it will notify taxpayers by mail or secure online message if their refund is delayed for review, and it advised using the IRS refund tracker for status updates. Taxpayers who receive a delay notice should respond promptly to any requests to verify identity or banking information to speed resolution.
Why Millions Could Experience Weeks-Long Delays
The combination of staffing changes, more complex return rules, and routine filing errors is increasing the chance that refunds will take far longer than the typical 21 days. Many taxpayers who claimed new or expanded credits, or who submit returns without correct bank details, face extra verification steps that can stretch processing into weeks.
IRS Staffing Cuts and Hiring Freeze Impact
Reduced staffing and a hiring freeze slowed the agency’s ability to process returns during the 2025 and 2026 filing seasons. Fewer examiners and phone agents means more returns wait in manual review queues, where simple issues require human intervention rather than automated clearing.
That backlog lengthens when the agency must reassign personnel to fraud detection and identity-verification tasks. Taxpayers relying on timely refunds — including families awaiting the child tax credit reconciliations — may see refunds delayed while returns sit in these queues.
Operational choke points include paper-processed returns and returns flagged for identity or income verification. Those items can take weeks to clear because the IRS has less capacity to handle peak-season volume and to work through carryover cases from prior weeks.
Complexity from Recent Tax Law Changes
Recent tax-law adjustments introduced by the 2025 legislation altered credit phase-ins, income thresholds, and reporting requirements. Returns that claim revised child tax credit amounts or newly indexed thresholds often trigger additional review to confirm eligibility and calculations.
Tax software and payroll reporting took time to adapt, producing mismatches between Form 1040 entries and employer or third-party reports. When those mismatches appear, the IRS places returns into manual review to reconcile differences, which can add multiple weeks to processing.
Taxpayers whose returns include uncommon adjustments, new deduction rules, or retroactive credits will see slower automated processing and a higher chance of an IRS notice requesting documentation. Those requests pause refund issuance until the IRS receives and verifies the paperwork.
Common Errors and Triggers for Refund Freezes
Missing or incorrect direct-deposit information is a frequent, avoidable cause of refunds freezing. Under the new rule requiring direct deposit for most refunds, wrong routing numbers, mismatched account names, or omitted bank details can stop electronic payments and force reprocessing.
Identity mismatches, mismatched Social Security numbers for dependents, and mismatched wage reports from employers also trigger holds. The IRS will often send a CP or similar notice asking for proof; taxpayers who respond slowly or submit incomplete documentation face extended waits.
Other triggers include inconsistent filing status claims, math errors, and multiple returns filed for the same taxpayer. These issues typically move returns into an examination workflow that relies on fewer staffers, increasing the time required to clear refunds during peak tax filing season.
More from Vinyl and Velvet:
Leave a Reply