Treasury confirms $3,521 avg refunds on 63M amid processing delays and new digital access
Key Questions
What is the average tax refund amount reported by the IRS as of late March?
The IRS reports an average tax refund of $3,521 for refunds issued so far. This is up 11.1% or about $350 from the previous year, with $221 billion total refunded to 63 million taxpayers, representing 72% of refunds.
Why are tax refunds higher this year?
Refunds are boosted by factors like the OBBBA, leading to an 11% increase year-over-year. IRS data shows the average up roughly $350 from last year as of late March.
What are the main reasons for IRS processing delays?
Over 1.4 million returns are delayed, with more than 1 million due to paper filings, direct deposit errors like name mismatches, ID theft, and EITC holds. Banks are returning direct deposits when names don't match accounts, and family name changes can cause issues.
What scams should taxpayers watch for near the filing deadline?
BBB and Michigan AG Dana Nessel warn of rising tax scams, phishing, and ID theft, with losses over $4.5 billion. Common tactics include fake calls or emails pretending to be IRS demanding immediate payment.
What is the new Business Tax Account from the IRS?
The IRS has opened a new Business Tax Account for digital access to manage business tax matters. It provides easier online handling amid processing delays.
What are the IRS non-filer alerts about?
On April 2, the IRS warned millions of non-filers that they may be missing potential refunds and tax credits. Many Americans not required to file are eligible for unclaimed benefits.
What tax relief is available due to Winter Storm Fern?
Taxpayers in Tennessee affected by Winter Storm Fern have until May 22, 2026, to file federal individual and business returns. The IRS announced this extension on April 3.
How widespread is tax identity theft?
Tax ID theft is spiking across the US, with alerts from Nessel and others ahead of the April 15 deadline. Certain states are the biggest targets, and victims face refund delays.
IRS reports $3,521 avg late Mar (up 11.1%, $221B total 72% refunded), OBBBA boosts; >1.4M delays (>1M paper/direct errors/ID theft/EITC holds); BBB/Nessel alerts on scams/phishing/ID theft ($4.5B+); Business Tax Account opens; Apr2 non-filer alerts; TN Fern May22 ext; state aids; Hern grill/cuts sharpen backlogs.