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IRS Paper Filers Face Weeks-Long Delays as Digitization Pilot Stalls

Manual processing plus a lingering backlog are slowing IRS paper refunds.

Overview

  • IRS guidance says error-free paper Form 1040 returns take roughly four to six weeks to process, with months-long waits possible if a return is flagged.
  • Electronically filed returns with direct deposit are generally paid within 21 days when no issues are detected.
  • TIGTA reported about 2 million individual return items in inventory as of December 2025, a backlog that may hinder timely processing this season.
  • Staffing cuts and limited onboarding after a 43-day shutdown have reduced capacity, and early February data show fewer returns processed and fewer refunds issued than a year earlier.
  • The Zero Paper Initiative did not become operational for 2026, legacy systems still require extensive manual handling, and paper filers should expect limited status detail and phone support.