The Internal Revenue Service (IRS) has been the subject of much debate in recent weeks, particularly since it is under the control of the Donald Trump administration, with repeated criticism for refund delays, but recent investigations have revealed the technical reasons for these delays.
Tens of millions of American taxpayers filed their tax returns electronically, far more than in previous years, and fewer and fewer people are attempting to file their taxes on paper, either due to the delays and risks associated with doing so incorrectly, or simply because the papers can get lost in the mail. We investigated the fundamental reasons why tax refunds are delayed, according to IRS data.
Main causes of delay in IRS refunds according to official analysis
According to official documents, an additional review of returns is critical, particularly when inconsistencies, complex tax credits, or fraud risks are discovered. This process aims to ensure payment accuracy while also extending deadlines.
The most common causes are mathematical errors, omission of key data, and claims for credits like the EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit).
Paper returns, unpaid government debts, and suspected identity theft all trigger verification protocols. These cases exceed the standard 21-day period for electronic procedures involving direct deposit.
The IRS recommends using the “Where’s My Refund?” platform for real-time tracking. The update process takes 24 hours for electronic systems and four weeks for physical returns. “Transparency is a priority, but some cases require manual validation,” explains a spokesperson in the December 4, 2024 statement.
Other common causes that cause the delay of IRS tax refunds
According to the experts we spoke with, manual processing of physical forms can add up to six weeks to the typical timeline. This method, while current, increases human error and logistical delays. Furthermore, debts owed to federal agencies allow the IRS to withhold refunds to offset debts, a legal procedure known as debt offset.
On other occasions, IRS officers and inspectors detect potential irregularities and launch investigations, which can cause refunds to be delayed for weeks.
The Taxpayer Ombudsman Service warns that these cases necessitate identity verification and data cross-checking with agencies such as Social Security. “No system is perfect, but we prioritize fiscal security,” states a report from the organization.
If your tax refund has been delayed and you are unsure why, you should expect to receive an official communication from the IRS in which you will be asked for additional information, supporting documents, and other evidence if doubts or inconsistencies are discovered.
The agency prefers to send physical notifications by mail, but you can also find potential notifications at “Where’s My Refund.” Experts recommend filing electronically via direct deposit, reviewing calculations with certified software, and updating personal information.
Those claiming EITC or ACTC credits should anticipate delays and plan their finances without relying on strict deadlines.
