Overview
- As of February 6, average refunds reached $2,290, up about 11% from a year ago, while returns received fell roughly 5% to 22.4 million and the count of refunds issued also declined.
- The IRS is phasing out paper checks and defaulting to direct deposit, with refunds frozen via CP53E notices when bank details are missing or incorrect, a process that gives taxpayers 30 days to respond before a paper check is mailed weeks later.
- Federal law requires refunds that include the Earned Income Tax Credit or Additional Child Tax Credit to be held until mid‑February, with many direct deposits projected around March 2 for early filers.
- Tax professionals report processing friction from missing or draft IRS forms, and watchdogs warn reduced staffing and backlogs could slow non‑routine returns and customer service.
- Officials have touted larger refunds tied to last year’s tax law, with analysts estimating roughly $1,000 more per filer on average, while President Trump claimed some taxpayers could see over 20% returned.