IRS tax refund delay: New IRS rule may delay tax refunds for weeks—what filers can do to prevent a freeze
The IRS now warns that if taxpayers fail to provide their bank account and routing number, they may not automatically receive a refund via check as they previously did. If someone provides their bank details but the bank rejects them, the IRS will freeze the refund for a period of time, MassLive notes. In previous years the IRS automatically sent a paper check if direct deposit failed, but this will NOT happen now.
How the refund delay occurs:
When a refund is frozen, the IRS sends a CP53E notice explaining the problem. This notice gives taxpayers 30 days to submit accurate banking information online through their IRS account. If taxpayers do not respond within 30 days, the IRS will send a paper check. However, according to the IRS, this paper check will arrive approximately six weeks from the date of notification. The IRS warns that refunds may be delayed until late spring or longer because of this process.
To avoid delays, taxpayers should:
Taxpayers must enter correct bank account and routing numbers before filing taxes. They should check their IRS online account regularly after filing to see if any notices have arrived. As MassLive notes, if they receive a CP53E notification, they need to respond quickly to avoid long delays. If they don’t act quickly, their refunds will turn into paper checks and be delayed for weeks.
FAQ
Q1. Why might IRS tax refunds be delayed this year?
Due to the IRS’s halt on paper checks, refunds may be frozen if taxpayers do not provide correct bank information.
Q2. How can taxpayers avoid an IRS refund freeze?
They must include valid bank account and routing numbers and respond quickly to any IRS notices.
