We’ve officially entered tax filing season, and many Americans are eagerly awaiting their refunds.
But for millions of people, their tax refunds could be delayed by weeks. That’s according to a recent IRS article that suggests regulations could delay processing times for taxpayers benefiting from two relatively popular programs(1).
“We may need more information from you about your return,” the agency says on its website. If you think your refund may be affected, here’s what you need to know.
In most cases, the IRS insists on processing your refund within 21 days(2).
However, the agency also notes that in some cases, you may be required to provide additional information, which may delay the process of issuing refunds to certain individuals.
Taxpayers eligible for two specific programs through 2026 – the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) – may be affected by this delay.
The agency advises that beneficiaries of the two popular schemes could see their refunds by March 2 if they file their returns online, choose to get their refunds by direct debit and the agency does not identify any issues or gaps in their returns.
If the IRS does discover a loophole, it may issue a letter requesting clarification, which could further delay the process.
If you’re wondering why the agency can’t issue partial refunds when processing these two credits, the IRS points to federal regulations as a roadblock.
Anyone who received either credit under the Protecting Americans from Tax Hikes (PATH) Act will not be able to get a refund until the end of February, according to the Taxpayer Advocacy Service(3). The rule forces the agency to withhold the entire refund — not just the portion associated with the two programs.
Unfortunately, given the popularity of these programs, millions of ordinary families may face delays in much-needed cash relief.
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This delay could impact families who rely on the EITC and ACTC as critical financial lifelines.