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Tax Season Is Year-Round

Why refunds are delayed (EITC/ACTC freeze, TOP offsets, identity verification) and how to use IRS tools, transcripts, and forms to track, diagnose, and resolve holds or rejections.

Why refunds are delayed (EITC/ACTC freeze, TOP offsets, identity verification) and how to use IRS tools, transcripts, and forms to track, diagnose, and resolve holds or rejections.

Refund Delays, Tracking & Identity Checks

As the 2026 tax season continues, millions of Americans remain caught in a web of frustrating delays when waiting for their federal tax refunds. While many of the systemic factors causing these delays have persisted from previous years, recent developments in IRS processes, taxpayer tools, and fraud prevention measures are reshaping how refunds are tracked, delayed, and ultimately released. Understanding why refunds are delayed—and how taxpayers can actively diagnose and resolve these issues—is now more important than ever.

Why Refunds Remain Delayed in 2026: The EITC/ACTC Freeze, TOP Offsets, Identity Verification, and Rising Fraud Threats

1. The Persistent Mid-February Freeze on EITC and ACTC Refunds

For the fifth consecutive year, the IRS enforces a mandatory delay on refunds that include the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). This freeze, lasting until mid-February, is part of the IRS’s ongoing strategy to reduce fraud and improper payments by allowing additional time for thorough eligibility verification.

As CPA Kimberly Furrh explains:

“The freeze safeguards taxpayer dollars by giving the IRS a chance to verify eligibility and prevent fraud before releasing funds.”

Taxpayers who see status messages like “We’re processing your return” during this period should recognize this as a deliberate, protective measure—not an error or system glitch. Since its implementation, this freeze has helped prevent billions of dollars in fraudulent payments while maintaining the integrity of key social support credits.

2. Expanded Treasury Offset Program (TOP) Interceptions

The Treasury Offset Program, which reduces tax refunds to satisfy certain federal debts, has been expanded and optimized in 2026, resulting in increased interception rates. TOP now more aggressively offsets refunds against:

  • Defaulted federal student loans, a debt affecting over 42 million borrowers nationwide
  • Unpaid child support obligations, triggering automatic refund reductions upon processing
  • Outstanding federal tax liabilities and other agency debts, including tax liens and penalties

Joint filers should note that if one spouse owes qualifying debts, the entire refund may be intercepted. The IRS has responded by enhancing the Individual Online Account platform to deliver clearer, more detailed offset explanations and notifications, enabling taxpayers to better understand and address these offsets.

3. Heightened Identity Verification Measures and Resulting Delays

Combatting identity theft remains a top IRS priority in 2026, leading to an uptick in identity verification requests. Taxpayers flagged for verification must:

  • Respond promptly to IRS letters requesting proof of identity
  • Complete multi-factor authentication via the ID.me portal or IRS secure platforms
  • Confirm bank account ownership through IRS-initiated $0 or nominal test deposits

Delays often arise when taxpayers postpone responses or face technical challenges with identity verification systems. The IRS stresses that timely compliance with verification requests is critical for minimizing refund hold times.

4. Escalating Tax Refund Scams and New IRS Reporting Tools

Refund scams have surged sharply this season, with state and local law enforcement agencies, including the Roseville Police Department, issuing urgent warnings about IRS impersonation scams. Fraudsters use fake calls, texts, and emails to trick taxpayers into divulging personal data or making fraudulent payments.

Key scam warnings include:

  • Never click on suspicious links or provide personal information in unsolicited communications
  • The IRS never requests payments via gift cards, wire transfers, or cryptocurrency
  • Always verify IRS correspondence by visiting IRS.gov directly
  • Local authorities report significant increases in IRS impersonation scams this season

In response, the IRS has launched a new streamlined tax fraud and scam reporting webpage, simplifying the process for taxpayers to report suspicious activity and access official guidance, reinforcing its commitment to safeguarding taxpayers.

Leveraging IRS Tools and Transcripts to Track, Diagnose, and Resolve Refund Holds

The IRS has enhanced its digital infrastructure in 2026 to improve transparency and empower taxpayers to take control of their refund status:

  • Where’s My Refund? (WMR) remains the go-to portal for refund tracking, now with improved messaging that clarifies status even during the EITC/ACTC freeze and provides better estimates of deposit timing.
  • The IRS Individual Online Account now offers expanded features, including detailed insights into refund status, tax balances, payment histories, IRS notices, identity verification alerts, and offset explanations with clearer codes.
  • The IRS2Go Mobile App delivers refund status updates with convenient push notifications.
  • The Amended Return Tracker within the Individual Online Account keeps taxpayers informed on Form 1040-X processing.

Taxpayers are strongly encouraged to create and use Individual Online Accounts for real-time, comprehensive access to their tax data and refund progress.

Using IRS Transcripts and Offset Codes

IRS transcripts provide critical diagnostic information for understanding refund delays:

  • Tax Return Transcripts show original filed return data.
  • Account Transcripts reflect payments, adjustments, offsets, and outstanding balances.
  • Wage & Income Transcripts list third-party reported income for verification.

In 2026, transcripts feature more explicit offset codes, specifying the type and source of intercepted debts—such as student loans, child support, or tax liens—helping taxpayers quickly identify issues.

For joint filers affected by offsets, submitting Form 8379 (Injured Spouse Allocation) remains essential. The IRS has expedited its processing this year, allowing injured spouses to reclaim their share of refunds more rapidly than before.

Steps for Identity Verification and Bank Deposit Confirmation

Taxpayers flagged for identity verification should:

  • Promptly complete multi-factor authentication via ID.me or IRS secure portals.
  • Upload all requested identity documents and comply with biometric checks if required.
  • Monitor bank accounts for $0 or nominal test deposits made by the IRS, which are verification tools—not refunds.
  • Confirm bank account ownership through IRS portals or by contacting IRS support when needed.
  • Understand that failure to respond promptly greatly prolongs refund delays.

Avoiding and Fixing Return Rejections

Common causes of return rejections causing delays include:

  • Social Security number or dependent information mismatches
  • Incorrect bank routing or account numbers
  • Incomplete or delayed identity verification

The IRS now provides enhanced error messaging to help taxpayers identify and quickly correct issues. Trusted media outlets such as US News and The Financial Express offer detailed, step-by-step guides for resolving common errors. Prompt correction is critical to avoid manual processing and lengthy wait times.

Verifying That Your Return Was Filed and Processed

A new key development this season is increased public interest in verifying that a tax return has been successfully filed and accepted by the IRS.

Taxpayers can use:

  • Where’s My Refund? and the Individual Online Account to confirm receipt and processing status.
  • IRS transcripts to verify the filing date and acceptance.
  • IRS telephone support for cases where online tools are inconclusive or for more complex inquiries.

Additionally, taxpayers seeking human assistance can refer to community resources like Intuit’s TurboTax forums, which provide guidance on how to verify that 2024 taxes were filed and offer tips on speaking directly with IRS representatives when necessary.

State Refund Delays and Coordination Challenges Persist

Several states, including Michigan, continue to experience significant refund processing backlogs due to staffing shortages and IT modernization efforts. Michigan taxpayers, for instance, may face weeks-long delays even after receiving their federal refunds.

Taxpayers should monitor state refund status independently via official state tax agency websites and plan finances with potential delays in mind.

Taxpayer Advocate Service and Special Support Options

For those facing complex refund holds, identity theft, or offset disputes, the Taxpayer Advocate Service (TAS) remains a vital resource. TAS offers confidential, independent assistance for:

  • Victims of identity theft filing Form 14039 (Identity Theft Affidavit)
  • Taxpayers impacted by offsets who face economic hardship
  • Individuals stuck in prolonged refund processing or offset resolution

The IRS also provides extended filing deadlines (through March 30, 2026) for military personnel and certain post-divorce taxpayers with special circumstances.

Practical Tips to Navigate Refund Delays in 2026

  • Do not expect refunds before mid-February if claiming EITC or ACTC credits.
  • Use Where’s My Refund?, IRS Individual Online Account, and IRS2Go regularly to track refund status.
  • Review IRS transcripts early to identify offsets, holds, or errors.
  • Respond promptly to identity verification requests, preferably via ID.me.
  • Watch for and verify IRS $0 or nominal test deposits to confirm bank accounts.
  • Submit Form 8379 immediately if joint filer offsets apply.
  • Correct rejected returns swiftly using IRS error messages and trusted guides.
  • Keep detailed records of filings, payments, and IRS correspondence.
  • Stay alert to IRS impersonation scams—never pay via gift cards, wires, or cryptocurrency—and verify all communications directly on IRS.gov.
  • Monitor state refund portals for local delays.
  • Contact the Taxpayer Advocate Service for unresolved or hardship cases.

Conclusion

The 2026 tax refund season continues to be marked by the challenging interplay of fraud prevention efforts, expanded debt offset programs, intensified identity verification, and a surge in refund scams. These factors collectively contribute to widespread refund delays and taxpayer frustration.

However, the IRS’s ongoing investments in digital tools, clearer transcript data, improved offset explanations, and streamlined fraud reporting mechanisms are empowering taxpayers as never before. By proactively monitoring refund status, responding quickly to IRS requests, and using available resources, taxpayers can better navigate this complex environment.

Remaining informed, vigilant against scams, and responsive to the IRS will help protect refunds and reduce stress during this taxing season. As the IRS continues modernizing and adapting to emerging challenges, taxpayers who engage with these tools effectively will face fewer surprises and greater control over their refund outcomes.

Key Resources

By staying proactive, using enhanced IRS tools, and remaining vigilant against scams, taxpayers can better manage refund delays and protect their hard-earned money throughout the 2026 tax season.

Sources (78)
Updated Feb 26, 2026