IRS Refund Delays Persist Amid Verification Backlogs
IRS refund delays continue to affect millions of taxpayers as returns undergo additional review for identity verification, credit eligibility, and error resolution. Federal officials say that most refunds are still issued within standard timeframes, but a growing share of federal tax returns require manual processing, which extends wait times.
The Internal Revenue Service has acknowledged ongoing refund delays tied to increased verification requirements and reduced staffing levels. According to the National Taxpayer Advocate’s midyear report to Congress, more than 13 million federal tax returns were temporarily suspended during the 2025 filing season pending additional review.
The Taxpayer Advocate Service stated that these delays directly impact when a tax refund is released, even for taxpayers who e-file using a commercial e-file service and request direct deposit to a bank account. While most electronically filed returns without issues are still processed within 21 days, any return flagged for review falls outside that standard timeframe.
Identity verification remains a primary driver of IRS refund delays. During the 2024 filing season, the IRS suspended more than 1.9 million federal tax returns for identity authentication, according to the Taxpayer Advocate Service. When this occurs, taxpayers receive an IRS notice requesting confirmation of tax information.
The IRS commonly issues Letter 5071C, 4883C, 5447C, or 5747C, instructing taxpayers to verify their Social Security Number or individual taxpayer ID number. Refunds are not processed until verification is completed through the IRS Online Account, by phone, or, in limited cases, in person.
Tax-related identity theft cases experience the most severe processing delays. As of the end of the 2025 filing season, the IRS had approximately 387,000 identity theft victim assistance cases in inventory, with average resolution times approaching 20 months.
The National Taxpayer Advocate reported that nearly 70 percent of affected taxpayers had incomes at or below 250 percent of the federal poverty level, increasing the financial impact of delayed refunds.
Certain credits and claims are more likely to result in refund delays. The IRS has identified the Earned Income Tax Credit, Child Tax Credit, and Additional Child Tax Credit as frequent triggers for additional review.
Returns that include Injured Spouse Allocation claims or corrections submitted through an amended tax return also take longer to process. Errors involving Form 1040, mismatched Forms W-2, or incomplete tax records can further delay the issuance of refunds, according to IRS guidance.
Taxpayers can monitor refund status using the Where’s My Refund tool on IRS.gov. The IRS advises waiting at least 24 hours after e-filing or four weeks after mailing a paper return before checking. IRS representatives generally cannot research a refund until 21 days have passed since electronic filing.
Taxpayers with an IRS Online Account can also review transcripts for status updates. Transcript code 570 indicates a processing delay, while code 971 confirms that the IRS has sent a notice requesting additional information.
The IRS has not yet released detailed guidance for income or identity verification procedures affecting 2025 tax year returns, which will be filed during the 2026 filing season. The Taxpayer Advocate Service has warned that staffing reductions and aging technology could continue to contribute to IRS refund delays.
Tax professionals recommend responding promptly to IRS notices and using official IRS tools to track refund status. While most refunds are still issued without issue, taxpayers affected by verification reviews or credit claims should expect longer processing times.
By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now
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