Overview
- Average refunds are projected to be roughly $1,000 higher due to last year’s One Big Beautiful Bill tax changes that were not reflected in paycheck withholding.
- Returns filed without valid direct deposit details can trigger a temporary hold, with a CP53E notice giving about 30 days to update bank information before a paper check is sent after roughly six weeks.
- The IRS is phasing out paper refund checks, citing security and speed, and says e‑filing with direct deposit typically delivers money in 21 days or less.
- Treasury and taxpayer advocate reports cite a roughly 25%–27% workforce reduction and a backlog including about 590,000 amended returns, raising the risk of slower processing and reduced phone service levels.
- By law, refunds claiming the Earned Income Tax Credit or Additional Child Tax Credit will not be paid before mid‑February, with most direct‑deposit payments expected to arrive by early March.