IRS 2026 Tax Season: Will Your Refund Be Delayed?
The 2026 tax filing season is officially here, and while most Americans will see their refunds processed quickly, a new report to Congress warns of some significant “potholes” ahead.
In her 2025 Annual Report to Congress, National Taxpayer Advocate Erin Collins highlighted a perfect storm of challenges facing the IRS this year: a 27% reduction in staff, leadership turnover, and the complex task of implementing the “One Big Beautiful Bill” passed last July.
Here is what you need to know to ensure your refund doesn’t get stuck in the system.
1. The End of the Paper Check?
The biggest shift this year is the IRS’s aggressive push away from paper checks. If you don’t provide direct deposit information, brace for a wait.
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The 6-Week Hold: The IRS may hold refunds for up to six weeks for taxpayers who fail to provide banking info.
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Security Risks: Treasury checks are 16 times more likely to be stolen or lost compared to electronic transfers.
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The Solution: If you don’t have a traditional bank account, the IRS suggests using reloadable debit cards or digital wallets to receive your funds safely.
2. Digital Scanning vs. Paper Returns
Still filing by mail? You’re entering a “test zone.” The IRS has launched a “zero paper initiative,” outsourcing the scanning of paper returns to private companies.
The Risk: While this should speed things up, the Taxpayer Advocate warned that outsourcing introduces privacy risks and potential processing glitches if the technology isn’t 100% ready. E-filing remains the fastest and safest route.
3. Relief for Student Loan Borrowers
There is a bit of good news: the “refund grab” has been paused. Previously, 2026 was set to be the first year that the government would resume seizing tax refunds to cover defaulted federal student loans. However, the Department of Education recently announced a temporary delay on these “offsets.” While it’s unclear how long this grace period will last, your 2025 refund is likely safe for now.
4. Common Roadblocks to Your Refund
Even if you do everything right, the report identifies “trouble spots” that are causing massive backlogs:
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Identity Theft Cases: Victims of ID theft are currently waiting an average of 21 months for resolution.
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Amended Returns: If you need to fix a mistake on a previous return, expect a wait of 5 to 13 months.
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Customer Service Gaps: With a 22% drop in veteran phone representatives, the IRS is relying more on “voicebots.” Unfortunately, only about 40-50% of taxpayers find these bots helpful.
Tips for a Faster Refund in 2026
To avoid the headache, follow these three golden rules:
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File Electronically: Avoid the new outsourced paper-scanning system.
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Choose Direct Deposit: It is the only way to avoid the mandatory 6-week “paper check” verification hold.
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Double-Check Eligibility: The new tax laws (from the One Big Beautiful Bill) have complex income thresholds. Use reputable software to ensure you aren’t flagged for an error.
