New IRS rule may delay tax refunds for weeks—what filers can do to prevent a freeze

Many taxpayers may get a surprise this tax season because some rules for filing taxes have changed from last year. One big change is that the Internal Revenue Service is slowly stopping paper refund checks, which could cause refund delays. The IRS and the U.S. Treasury Department are updating the system and making direct deposit the main way to send refunds.

Now, if taxpayers do not give their bank account and routing number, they will not automatically get a refund by check like before, the IRS warns. If someone gives bank details but the bank rejects them, the IRS will freeze the refund for some time, as stated by MassLive. In earlier years, the IRS would send a paper check automatically if direct deposit failed, but this will NOT happen now.

How the refund delay happens:

When a refund gets frozen, the IRS sends a CP53E notice explaining the problem. This notice gives taxpayers 30 days to submit correct bank details online through their IRS account. If taxpayers do not respond within 30 days, the IRS will send a paper check. But this paper check will come only after about six weeks from the notice date, according to the IRS. Because of this process, refunds could be delayed until late spring or even longer, the IRS warns.

What taxpayers should do to avoid delays:

Taxpayers should enter the correct bank account and routing numbers before filing taxes. They should check their IRS online account regularly after filing to see if any notice has come. If they receive a CP53E notice, they must respond quickly to avoid long delays, as noted by MassLive. If they do not act fast, their refund will switch to a paper check and get delayed for many weeks.

FAQs

Q1. Why can IRS tax refunds be delayed this year?

Refunds can be frozen if taxpayers do not give correct bank details because the IRS is stopping paper checks.

Q2. How can taxpayers avoid an IRS refund freeze?

They should add valid bank account and routing numbers and quickly respond to any IRS notice.