Millions of Americans may experience slower tax refunds in 2026 due to recent changes in regulations and policies related to the annual tax filing process.
Due to changes in IRS policy, millions of people may experience slower tax refunds in 2026. The IRS shares that you can avoid delays. (pixels)One of those notable developments is the Internal Revenue Service’s (IRS) plan to phase out paper checks, which could cause refunds to be halted and delayed for weeks.
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What has changed?Refunds will now be processed by direct deposit by default. It comes as the IRS and US 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 receive automatic refunds.
Instead, the IRS will withhold the refund until banking details are provided. In previous years, the agency would automatically issue a paper check 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 IRS’ official site, a CP53E notice, which the IRS sends when a return is filed, explains the situation and gives taxpayers 30 days to submit correct bank information online through their IRS account.
If filers do not respond within that 30-day window, the IRS will only issue a paper check approximately six weeks after the notice date.
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How can this delay be avoided?To help prevent this refund freeze, here are the IRS suggestions that taxpayers should follow:
Activate direct deposit for your bank account by providing your bank account and routing number before filing.File early and electronically to speed processing and reduce errors.Keep an active eye on your IRS account after you file your tax return for a CP53E notice.If you receive a CP53E notice, respond immediately to avoid further delays that could drag on for weeks.
