IRS Processing Delays Could Affect January 2026 Refunds: What Filers Need to Know

The IRS has announced updates that could delay the processing of some returns and push expected refunds into January 2026. This article explains why delays are happening, which taxpayers may be affected, and practical steps filers can take to reduce wait times.

Why IRS Processing Delays Could Affect January 2026 Refunds

The IRS routinely adjusts processing schedules each filing season based on staffing, system updates, and changes in tax law. This year, a combination of backlog clearance, technology upgrades, and increased identity verification steps are the primary drivers.

These factors mean some returns that normally clear quickly may need extra checks. As a result, refunds that taxpayers expect in late December or early January may be delayed into mid or late January 2026.

What Filers Need to Know About the Updated Timeline

The updated timeline does not mean everyone will see a delay. The IRS is prioritizing electronically filed returns with direct deposit and those without flagged issues.

However, returns that trigger verification, include new credits, or contain errors are more likely to be held for additional review.

Which Returns Are Most Likely to Be Delayed?

Certain common situations increase the chance of delay. Knowing these helps filers anticipate issues and take preventive steps.

Identity verification flags: returns that match known fraud patterns or require identity confirmation.
New or changed credits: first-time claims for credits like the Child Tax Credit or new dependent-related credits.
Math or information errors: mismatches between forms (W-2, 1099) and the return.
Paper documents requested: the IRS sometimes needs supporting documents sent by mail.

Updated Timeline Highlights

Here are the practical timeline expectations based on the IRS update:

Electronically filed, simple returns: many will still be processed within 21 days unless flagged.
Flagged or verification-needed returns: processing may extend into January 2026 or longer.
Paper-filed returns: likely the longest delays — often several weeks beyond electronic returns.

Practical Steps Filers Can Take to Reduce Delays

Filers can follow clear steps to lower the chance their refund is delayed. Many measures are simple and effective.

File electronically and choose direct deposit. This speeds processing and payment.
Double-check names, Social Security numbers, and bank routing numbers for accuracy.
Include all required forms and schedules on your e-file. Missing forms can trigger manual review.
Respond promptly to any IRS letter and follow instructions exactly to avoid further delay.
Use tax software or a preparer who checks for common errors and verifies entries before filing.

Examples of Simple Preventive Checks

Before submitting your return, verify these items:

Your name and SSN exactly match Social Security Administration records.
Dependents’ information matches their SSNs and dates of birth.
W-2 and 1099 totals match entries on the return.

Did You Know?

The IRS often delays refunds to run identity checks even when a return appears error-free. Choosing direct deposit and accurate data entry is the fastest way to receive a refund when no flags appear.

How to Track a Delayed Refund

Use the IRS tools and maintain documentation. Tracking reduces uncertainty and helps you follow up appropriately.

Key tracking options include:

IRS Where’s My Refund? tool — updated once daily and shows status stages.
IRS2Go mobile app — similar status updates and alerts.
Contacting the IRS only after the published processing window ends to avoid long wait times on hold.

When to Contact the IRS

If your return remains in a pending status past the IRS’s published timelines, prepare to contact the agency. Have your adjusted gross income (AGI), filing status, and last filing year handy for identity verification.

Real-World Example: A Small Delay Case Study

Sarah, a single filer, e-filed her 2025 return in late December and elected direct deposit. Her return was flagged for identity verification because she claimed a first-time dependent credit. The IRS sent a letter requesting additional documentation in early January.

Sarah responded quickly by uploading documents through the IRS online gateway and confirmed delivery with her tax preparer. Her refund arrived in mid-January 2026. The total delay was about three weeks beyond her original expectation.

Key takeaways from Sarah’s case: prompt response, proper documentation, and electronic submission shortened the delay.

Final Checklist Before Filing

File electronically and use direct deposit when possible.
Verify all numerical entries and Social Security numbers.
Keep copies of all forms and receipts for at least three years.
Monitor IRS tools daily if you expect a refund.
Respond immediately to IRS correspondence and follow the instructions precisely.

Following these steps will not eliminate all delays, but they will reduce the chance your refund is pushed into a later processing window. Stay informed, prepare your documents, and use the IRS online tools to track progress.