WASHINGTON, Feb 6, 2026, 02:15 EST
- The Treasury watchdog reported that the IRS shed roughly 19,000 workers and kicked off filing season with around 2.0 million items stuck in critical processing queues
- The IRS noted that while most refunds go out within 21 days, certain returns require additional scrutiny.
- New regulations ending paper refund checks mean missing bank details could delay refunds by weeks
The U.S. Internal Revenue Service is headed into the 2026 filing season understaffed, with backlogs growing and hiring lagging in critical processing units, according to a Treasury watchdog memo. The IRS lost roughly 19,000 employees amid workforce cuts and was carrying about 2 million unfinished items in major return-processing inventories as of early December. It had hired just 50 of 2,200 approved new staff for a key processing role, the memo revealed. https://www.tigta.gov/sites/default/files/reports/2026-01/2026400002-Readiness-Memo.pdf
The IRS kicked off the 2025 tax return season on Jan. 26, with around 164 million individual filings expected before the April 15 deadline. Most refunds are processed in less than 21 days, the agency said. Refunds linked to the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) should arrive by March 2 for direct deposit recipients. https://www.irs.gov/newsroom/irs-opens-2026-filing-season
If things go wrong, the processing line could slow down. Returns that demand manual review — like paper filings, amended submissions, or those flagged for identity verification or income mismatches — are more likely to face delays, Axios reported. “The most immediate impact for taxpayers is longer wait times for IRS customer service,” said Rob Torres, Cleo’s lead financial expert. The IRS has also cut its phone “level of service” target, dropping the percentage of callers who get through from 85% last season to just 70% this year, Axios noted. https://www.axios.com/2026/02/05/tax-refund-status-irs-delays-staffing Axios
The IRS announced it will largely stop issuing paper refund checks to individual taxpayers after Sept. 30, 2025, following Executive Order 14247. Refunds will shift toward electronic payments. If direct-deposit info is missing or rejected, the IRS will mail a CP53E notice, asking for a response within 30 days. The agency won’t accept banking details over the phone or in person. If taxpayers don’t reply and there’s no other problem with the return, a paper check will be issued after six weeks. https://www.irs.gov/newsroom/questions-and-answers-about-executive-order-14247-modernizing-payments-to-and-from-americas-bank-account
Erin Collins, head of the IRS’s independent watchdog office, said taxpayers who file electronically, opt for direct deposit, and avoid fraud or error flags should move through the system smoothly. Still, she cautioned that the season’s results will depend heavily on how the IRS handles tougher cases. Collins noted it will be “defined by how well the IRS is able to assist the millions of taxpayers who experience problems.” https://www.washingtonpost.com/business/2026/02/04/tax-return-refund-issues/ The Washington Post
Complications are mounting thanks to the law itself. The IRS flagged the One, Big, Beautiful Bill Act—signed into law July 4, 2025—as one that “significantly affects federal taxes, credits and deductions.” This could mean more tax returns facing questions, corrections, or additional scrutiny this year. https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions IRS
The IRS says taxpayers can usually see a status on its “Where’s My Refund?” tracker about 24 hours after filing an e-filed return for the current year, or roughly four weeks for paper submissions. The tool refreshes overnight and displays three stages: return received, refund approved, and refund sent. The agency warns that mailed checks may take several weeks to reach recipients. https://www.irs.gov/wheres-my-refund IRS
The smooth, speedy timeline hinges on a clean return. When something throws off automated processing—like missing income forms, identity issues, number mismatches, or rejected deposits—that’s when delays stack up and a stretched workforce becomes obvious.
The IRS is pushing taxpayers to file electronically, opt for direct deposit, and rely on online tools before picking up the phone. Some will follow that advice and never see any issues; others will find out, the tough way, just how many hurdles exist between “refund approved” and actual cash hitting their accounts.
