Why is my refund delayed? Reasons why your refund might be taking longer this tax year

For many taxpayers, their federal tax refund will be the most significant payment of the year—and they rely on that check. Waiting for the refund to hit your bank account can test your patience, especially if you’re expecting a large refund.

Several scenarios can cause IRS processing delays. Understanding these reasons can help you navigate what to expect and even how to bypass avoidable issues when you file. Follow along as we answer, “Why is my tax refund delayed?” We’ll share common tax refund delay situations and what to do about it now.

How long does IRS refund take?

The Internal Revenue Service (IRS) knows your refund is important to you. It prides itself on paying most refunds within 21 days of filing. But if you’re experiencing a tax refund delay, you may be wondering when you’ll get your income tax refund and why it’s delayed.

How to check your federal refund status online

If you’re still waiting on your refund check, a good place to start is checking your tax refund status online. The IRS aims to provide refunds quickly, but don’t rely on getting it by a certain date. To accurately track your IRS tax refund status, use our Where’s My Refund? tool. You’ll need your Social Security number (SSN) or individual taxpayer identification number (ITIN), filing status, and the exact refund amount shown on your tax return. While the results will show the status of your refund, they may not show why the refund is delayed.

You can also view your IRS tax refund status on the IRS website.

The fastest way to get a tax refund is by e-filing and electing to receive your refund via direct deposit. Read more about checking the status of your tax refund.

What causes an IRS refund delay?

Although everyone would like to get their refund quickly, the refund processing system is designed to help prevent improper payments from going out. Most returns can go through the process and refunds can get issued within the expected timeframe of 21 days or less, but complex cases and returns with certain characteristics may take longer, as explained in the next section.

The IRS can hold your refund and request more information from you in several situations. This doesn’t mean you’re being audited—but it can lead to further delays or other issues if you don’t respond with all the information by the deadline. Be patient, and don’t worry. If your tax return is correct, it’s just a matter of explaining everything (and providing documentation) to the IRS.

Here are the most common situations when the IRS can hold (and delay) your individual income tax refunds:

1. You took certain tax credits

Generally, the IRS can’t release refunds with the Earned Income Credit (EITC) or Additional Child Tax Credit (ACTC) before February 15. Most refunds will be available in bank accounts or on debit cards by March 1 if you choose direct deposit and there are no other tax return issues.

The IRS may need additional documentation to verify eligibility for these credits. If the IRS doesn’t think you’re eligible to claim the credits based on its return screening filters, it can delay your refund and ask for more information.

For example, if the IRS challenges your EITC claim, you’ll get Letter CP75, which will ask for proof that you qualify for the EITC.

2. You have IRS debts

When the IRS issues refunds, it will first reduce (or offsets) your refund if you have certain debts to pay. Here are two common situations when there are debts involved that might cause a tax refund delay:

·         You owe federal taxes, and you haven’t paid.

If the IRS took your refund to pay federal income taxes you owe, you’ll get IRS Notice CP49, Overpayment Applied to Taxes Owed. If you don’t think you owe what the IRS says, file an amended tax return to correct the tax or contest any extra tax the IRS charged you (like a tax bill from a tax audit or an underreporting notice).

Tax relief is possible. Learn what to do if you can’t pay your taxes.

·         You owe other debts, and you haven’t paid.

The Treasury Offset Program (TOP) allows the IRS to take or reduce your refund if you owe other types of debts, including these non-tax debts:

• Past-due child support
• Other federal agency payments
• Delinquent state taxes
• Unemployment compensation repayments

The IRS can’t answer questions or resolve disputes related to TOP debts. Call TOP at (800) 304-3107 for answers.

Spouses who aren’t responsible for debts can request their part of the refund. If you filed jointly with your spouse and the IRS took your full refund for your spouse’s debts, you can get your portion of the refund if it was withheld for your spouse’s debt. File an injured spouse claim using Form 8379, Injured Spouse Allocation.

3. The IRS flags an error:

When you e-file your return, the e-file process catches many kinds of return errors and rejects the return at the time of filing. You generally have an opportunity to resubmit the return through e-filing. If you mail your income tax return instead of e-filing it, the IRS will identify errors upon review.

The IRS calls most of these errors “math errors,” but they aren’t limited to mathematical mistakes. If your Social Security Number (SSN) or your dependents’ information doesn’t match IRS records, the IRS could flag the discrepancy and cause an IRS refund delay.

When this happens, they have the power to change:

• Any related deductions or credits (like the Earned Income Tax Credit, or the Child and Dependent Care Credit), or
• Your return if you forget to include a corresponding schedule or form to support a deduction or credit.

If the IRS changes your return, you’ll get a letter (usually IRS notice CP21-A) asking you to correct the error within 60 days. If you don’t provide enough explanation and information, the IRS change is final. At that point, you would have to amend your return and follow up with the IRS to get your refund.

If you made an error or need to make changes to the information on your return after you’ve filed, you’ll need to file an amended return. If you e-filed your original return you can e-file the amended one, but if you mailed a paper return you must also mail a paper amended return. Processing amended returns can take the IRS longer, causing a refund delay.

4. The IRS suspects identity theft:

Tax identify theft cases have risen in recent years. IRS identity theft filters create a tax refund delay until taxpayers verify their identities. If this happens, you’ll usually receive IRS Letter 5071C asking you to verify your identity. Until the IRS reinstates its online identity verification process, you can verify your identity with the IRS.

5. You need to file an old return:

When the IRS pursues back tax returns, the IRS can freeze any due refunds until you file the old return. The only way to fix this issue and get your refund is to file the past-due return. If you owe taxes on the old return, the IRS will take that amount out of your current-year refund.

6. You’re under audit from a previous year:

Audits can also cause an IRS processing delay. This is most common when the IRS conducts a mail audit on your EITC or ACTC return from a prior year. Normally, you’ll receive IRS Letter CP88 indicating your refund is frozen until the IRS completes the audit. If you respond with the requested information by the deadline, the IRS will generally finish the audit within six months and will release your refund. Learn how to handle an IRS audit.

Handling a tax refund delay: How H&R Block can help

If you get a notice from the IRS about your refund hold, immediately investigate the cause. Contact the IRS if necessary, research your IRS account, and learn how to handle tax return and account problems.

Does this refund information sound intimidating? H&R Block can be your go-to for tax relief —and can help you handle any IRS notices you receive. Learn more about H&R Block’s Tax Audit & Tax Notice Services.

And for more tax tips, head to H&R Block’s Tax Information Center.