IRS shake-up delays 830,000 refunds, some taxpayers waiting over two months

A big change at the IRS has caused tax refund delays for many people in the US. Officials said over 830,000 refunds are already delayed in the 2026 tax season. Some taxpayers are waiting more than 2 months to get their money. The main problem is simple — people are not adding correct direct deposit details while filing taxes. When bank details are missing or wrong, the IRS cannot send money electronically.

In such cases, the IRS sends a CP53E notice asking people to update their bank info. This notice is sent only one time, so missing it can cause bigger delays. Taxpayers must update their bank details within 30 days using their IRS online account, as stated by The Sun. By March 9, around 530,000 notices were already sent, and 300,000 more were planned. If people do not update details in time, the IRS sends a paper check instead.

Paper checks take around 6 extra weeks to arrive. Because of this, total waiting time becomes about 2.5 months or more. Some refunds may even be delayed until early summer. Lawmakers warned that due to Executive Order 14247, delays could go over 10 weeks for paper checks. Normally, if everything is correct, refunds via direct deposit come in about 21 days.

Why is this happening?

The delays are linked to the government’s plan to modernize payments. Under Executive Order 14247, agencies must move from paper to electronic payments. This rule started being applied from September 2025. The IRS also announced it will slowly stop paper refund checks, as noted by The Sun. The reason: paper checks are slower, cost more, and have higher fraud risk. In fact, paper checks are 16 times more likely to be lost, stolen, or delayed.

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Who is most affected?

Most Americans already use direct deposit — about 93% refunds were digital in 2025. Around 87 million refunds were sent electronically last year. Only 7% of people still use paper checks, as cited by The Sun. But the change may hurt vulnerable groups. This includes people without bank accounts. Also affected: people living abroad or in remote areas. Some religious groups who avoid banking may face issues.

Victims of domestic abuse may not have safe access to bank accounts. People with disabilities may also struggle with digital systems. Experts warned that improving systems should not harm vulnerable taxpayers.

How to avoid refund delays

Always double-check your bank account and routing number before filing. Use direct deposit instead of paper checks whenever possible. If you don’t have a bank account, you can request a paper check waiver online. Create and check your IRS online account regularly. This helps you quickly fix issues if the IRS contacts you.

FAQs

Q1. Why are IRS tax refunds delayed in 2026?

Refunds are delayed mainly because many people did not add correct bank details, so the IRS cannot send money by direct deposit.

Q2. How long can IRS refund delays take now?

If there is an issue, refunds can take more than 2 months, especially if the payment is sent by paper check.