What is the longest time the IRS can hold your refund?

Asked by: Jettie Crona  |  Last update: August 21, 2026
Score: 4.3/5 (7 votes)

While the IRS typically issues refunds within 21 days, there is no strict maximum legal limit for how long they can hold a refund if they are conducting an audit or investigation. However, in cases involving identity theft, reviews can take up to 180 days or longer. Generally, the IRS must pay interest on refunds delayed beyond 45 days.

How long can the IRS hold your refund for review?

If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

Can you sue the IRS for taking too long?

Yes, you absolutely can sue the IRS for a refund.

This legal remedy exists specifically for taxpayers who have overpaid their taxes and are experiencing unreasonable delays or denials from the IRS in processing their refund claims.

How long can IRS freeze your refund?

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.

Can the IRS hold my refund longer than 180 days after?

There is no timeframe for how long the IRS can take to process a tax return before issuing a tax refund.

6 reasons the IRS will hold your Federal or state refund

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What is the longest wait for an IRS refund?

The IRS doesn't have a strict maximum time limit for issuing refunds, but generally processes e-filed returns with direct deposit within 21 days, while paper returns take 6 weeks or more, with longer waits for those claiming certain credits (EITC/ACTC) or if errors occur. If the IRS holds your refund for more than 45 days past the tax deadline (or filing date if late), they owe you interest, but significant delays (months) can happen for complex issues or extra reviews, sometimes requiring a mailed notice. 

Is it illegal for the IRS to hold your refund?

The IRS can hold your current-year refund if it thinks you made an error on your current-year return, or if the IRS is auditing you or finds a discrepancy on a filed return from the past. If the IRS thinks you made an error on your return, the IRS can change your refund.

How can I get the IRS to release my refund?

Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.

Should I be worried if my refund is still being processed?

You generally shouldn't worry if your refund is "still being processed," as it means the IRS is working on it, but it might take longer than the typical 21 days due to common issues like errors, incomplete information, or claiming credits like the EITC/ACTC. Worry only becomes necessary if you receive an IRS letter requesting more information or if the "Where's My Refund?" tool shows a specific problem like fraud, but typically, it just means a longer wait, not no refund at all. 

What is the maximum time for refund processing?

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.

How long is the IRS taking in 2025?

Most refunds issued in less than 21 days: EITC refunds for many available by March 3.

What happens if you haven't got your refund from 3 years ago?

The IRS is required to keep the filing open and hold on to unclaimed income tax refunds for three years. If you don't file for the tax refund after three years, the money becomes property of the US Treasury, and you won't be able to get it back.

Is it normal to wait 6 months for a tax refund?

The IRS generally issues refunds within 21 days of e-filing, but paper-filed returns can take 6 to 8 weeks.

How long will the IRS have you on hold?

IRS phone number - Call wait times

Wait times can average 3 minutes. Some phone lines may have longer wait times. Wait times are longer on Mondays and Tuesdays, during Presidents Day weekend and around the April tax filing deadline.

How much can the IRS take from you?

However, the IRS is unfortunately not bound by this law. This means that they can choose how much to garnish from your wages each month, depending on how much you owe and how much you earn. The limit is typically between 25-50% of your disposable earnings after deductions are made.

What is the 20k rule?

The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers. 

What is the IRS rule of 75?

The $75 Rule

According to IRS Publication 463 (Travel, Gift, and Car Expenses), you do not need to keep a receipt for a business expense under $75, except in certain situations. This $75 threshold applies to: Travel-related expenses (such as taxi fares, tolls, or transit passes)

How long can the IRS legally take to process your refund?

Processing your refund usually takes: Up to 21 days for an e-filed return. 6 weeks or more for returns sent by mail. Longer if your return needs corrections or extra review.

What's the longest a refund can take?

Key takeaways. Most people receive refunds within three weeks if they e-file and choose direct deposit; paper returns can take six weeks or more. Filing accurately — especially when claiming credits like the Earned Income Tax Credit— helps prevent refund delays.

Why is my refund so late in 2025?

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.

How long is it acceptable to wait for a refund?

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.

How to reach a live person at IRS?

To speak to a live person at the IRS, call the main line (800-829-1040), choose your language, then follow the prompts by selecting options for "Personal Income Tax," and when asked for your SSN/EIN, do not enter it, instead saying "representative" or repeating options until transferred to an agent, preferably calling early mornings on weekdays. Be patient and have specific questions ready, as the automated system tries to handle calls first.