How to avoid tax refund delays amid new IRS policy changes? Here's all you need to know

Due to IRS policy changes, millions may experience slower tax refunds in 2026. IRS has shared ways you can avoid the delay.

Published on: Feb 17, 2026 9:46 AM IST

Share via

Copy link

Millions of Americans may experience slower tax refunds in 2026 due to the recent change in regulations and policies pertaining to the yearly tax filing process.

Due to IRS policy changes, millions may experience slower tax refunds in 2026. IRS has shared ways you can avoid the delay. (Pexel)

The Internal Revenue Service's (IRS) plan to phase out paper checks is one of those significant developments, which could cause refunds to be stopped and postponed for weeks.

What has changed?

Refunds will now be processed by direct deposit by default. This comes as the IRS and U.S. Treasury Department modernize federal payments.

Due to the IRS's phase-out of paper checks, taxpayers who fail to include their bank account and routing information when filing will no longer be automatically refunded.

Instead, the IRS will pause refunds until banking details are provided. In previous years, a paper check would be automatically issued by the agency in such cases. This change will affect individual income tax returns filed for the 2025 tax year, which are being processed in 2026.

According to the official site of the IRS, A CP53E notice, which the IRS sends out when a refund is frozen, explains the situation and allows taxpayers 30 days to submit accurate bank information online through their IRS account.

The IRS will only issue a paper check approximately six weeks following the notice date if filers do not reply within that 30-day window.

How to avoid this delay?

To help prevent these refund freezes, here are the steps that the IRS suggests taxpayers should follow:

Activate direct deposit for your bank account by providing your bank account and routing numbers before filing.
File early and electronically to speed up processing and reduce errors.
Keep an active eye on your IRS account after you have filed your tax return for the CP53E notice.
If you receive a CP53E notice, reply immediately to avoid any further delay that could drag on for multiple weeks.

ABOUT THE AUTHOR
Shirin Gupta
Shirin Gupta is a content producer with the Hindustan Times. She covers everything between politics, entertainment and sports at the US desk. Shirin got interested in political journalism during her time as a web editor at her college newspaper NCC News in Syracuse when she first started seeing the effects of national politics in life of her fellow colleagues. Shirin has worked on a wide range of fast-moving and developing stories locally when she was at NCC editing accessible reports for the audience. Her current role requires her to track real-time updates, verify information and present balanced coverage across diverse beats. Covering US politics from an international newsroom perspective has further deepened her understanding of how domestic decisions can have far-reaching global consequences. With a keen interest in international affairs, Shirin continues to build her expertise in geopolitics, policy shifts, and cross-border developments. She aims to learn and evolve her reporting in matters of geopolitics and international issues. Outside the newsroom Shirin writes about books and music for her personal blog. She is an avid consumer of pop culture and reveres literature.Read More

Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics along with Horoscope 2026.