IRS tax refunds are primarily delayed by errors, missing information, or manual reviews, often taking longer than 21 days due to identity verification, mathematical mistakes, or claiming specific credits like the EITC/ACTC. Other common delays include paper filing, outstanding debt, or discrepancies between reported income and IRS records.
Unallowable Deductions: Refunds may be delayed or reduced if the taxpayer claims deductions that are clearly unallowable. First-Time Filers: A taxpayer who has not filed a tax return as either a primary or secondary filer in the previous ten years is considered a first-time filer, and this can lead to delays.
The main 2025 tax refund delay reasons include errors or incomplete information on returns, claims for the Earned Income Tax Credit or Additional Child Tax Credit, identity verification processes, amended returns, and offsets for outstanding debts. Paper returns and bank processing times can also contribute to delays.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.
Contact the IRS if: It's been 21 days or more since you e-filed.
Several factors can influence the processing time, including the need for additional review, discrepancies in the information provided, or high volumes of returns being processed. If you see tax topic 152, you don't necessarily need to take immediate action. However, you should monitor your refund status.
Generally, the amount of time is based on your filing date and you'll get your refund within 21 days after you e-file. (Paper filed returns can take much longer.) If you file before the IRS opens, you need to wait for the IRS open date (usually in late-January) before starting the 21-day clock.
Unreimbursed employee expenses are perceived to be one of the most common IRS red flags. The IRS frequently reviews unreimbursed employee expenses in audits, as they are widely considered a high abuse category for W2 employees.
Taxpayers whose tax returns have been flagged for possible identity theft should receive one of the following letters: Letter 5071C, Potential Identity Theft during Original Processing with Online Option – Provides online and phone options and is issued most widely.
In 2021, Congress lowered the threshold for reporting income on payment apps from $20,000 and 200 transactions annually to $600 for a single transaction.
What should I do? Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
Refund delays in AY 2025–26 are largely due to enhanced compliance checks and data matching, not system failure. Taxpayers should regularly review their AIS and Form 26AS, respond to department alerts and correct discrepancies promptly. In most cases, refunds will be issued once checks are complete.
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
Errors in your tax return calculations can cause delays as the IRS may need to correct them. A mismatch between your Social Security Number and the records can significantly delay your refund. Filing your tax return too early or too late can lead to delays due to IRS system updates or high processing volumes.
You may call us toll-free at 800-829-1040, M - F, 7 a.m. - 7 p.m.
If your transcript still shows code 570 after six months, the refund may be stuck in review. Call the IRS at 800-829-1040 and ask for a refund-hold review to see what's causing the delay. If it's been over 120 days, you might reach out to the Taxpayer Advocate Service since sometimes they can escalate stalled cases.
The IRS is considering changing an amount on your tax return, due to an examination after it processed your tax return. This is called an audit. If it audits your return, the IRS will notify you by mail, and the notice will tell you if the audit will be handled by mail or in person.
It's impossible to predict if your return will be selected for an audit, but you would do well to keep the most common red flags in mind:
Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you receive. If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
Your bank records have been served with an IRS summons even though you volunteered to provide those records to the IRS yourself. You have been audited and are in regular contact with an IRS agent. The agent then disappears for weeks at a time and will not return your calls.
Here's a list of seven symptoms that call for attention.
While a $10,000 tax refund might sound like a dream, it's achievable in certain situations. This typically happens when you've significantly overpaid taxes throughout the year or qualify for substantial tax credits. The key is understanding which credits and deductions you're eligible for.
You must offer a refund to customers if they've told you within 14 days of receiving their item that they want to cancel. They have another 14 days to return the item once they've told you. You must refund the customer within 14 days of receiving the item back.
Yes, the IRS can freeze your refund and ask you to file if you have an unfiled return from a past year, especially if the IRS projects that you will owe taxes on that past return. The IRS will hold your refund for six months while it requests a filed return from you.
Updates to refund status are made once a day — usually at night. Even with the January 30 opening of the tax season, we expect refunds to be issued within normal timeframes. The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year.