Many taxpayers expect to receive their refunds within a few weeks after filing. In most cases, the Internal Revenue Service states that refunds are issued within 21 days when returns are filed electronically and direct deposit information is provided. Electronic filing combined with direct deposit has long been considered the fastest and safest way to receive a refund. However, a recent federal policy change could affect how quickly some people receive their money. Taxpayers who do not provide correct banking information may now experience longer delays than in previous years.

Shift Away From Paper Checks

In March 2025, a federal executive order directed government agencies to move away from paper checks for payments both sent to and issued by the government. This order applies to tax refunds as well. The goal is to modernize payment systems, reduce fraud risks, and improve efficiency by relying more on electronic transfers. Under this updated approach, refunds are expected to be issued primarily through direct deposit. Paper checks are now limited to specific cases rather than being a standard option for everyone.

How the New Rule Can Delay Refunds

If a taxpayer files a return without providing direct deposit details, the IRS may process the return but temporarily freeze the refund. The same issue can occur if incorrect routing or account numbers are entered and the bank rejects the transfer. When this happens, the IRS will send a written notice requesting updated banking information. Taxpayers are generally given 30 days to respond with the correct details. During this time, the refund remains on hold. If no response is received within the required period, the IRS may issue a paper check. However, this can add several more weeks to the overall timeline. In some cases, the wait could extend to six weeks or longer after the freeze is resolved.

Why Direct Deposit Is Strongly Recommended

The IRS has repeatedly emphasized that electronic filing and direct deposit together offer the fastest refund method. Direct deposits reduce the risk of checks being lost, stolen, or returned due to address errors. They also move through banking systems much faster than mailed payments. In most tax seasons, more than nine out of ten refunds are issued within 21 days when returns are filed electronically and bank details are correct. This standard timeline still applies in 2026 for taxpayers who meet all requirements and avoid errors.

Common Mistakes That Cause Freezes

One of the most common reasons for delayed refunds is incorrect banking information. A single digit error in a routing number or account number can cause the bank to reject the deposit. When that happens, the refund cannot be automatically redirected without further action from the taxpayer. Some taxpayers may also face delays if they do not have a traditional bank account and fail to provide acceptable alternative details. Certain debit cards and mobile payment platforms provide routing and account numbers that can be used for direct deposit. Using accurate information from a reliable source, such as a check or official bank statement, is important.

Steps to Avoid Delays

Carefully reviewing all personal and banking details before submitting a return is one of the simplest ways to prevent refund delays. Taxpayers should confirm routing numbers directly with their financial institution rather than relying on memory or outdated records. Tracking refund status through official IRS tools can also help. If a notice is issued, responding quickly reduces the risk of extended waiting periods.

Final Thoughts

The new federal policy aims to modernize government payments and improve security. While most taxpayers who file electronically with correct bank details should continue receiving refunds within the usual timeframe, those who omit or enter incorrect direct deposit information may face significant delays. Being accurate and proactive during tax filing season can help ensure that refunds arrive as quickly as possible.

Disclaimer:

This article is for informational purposes only and does not provide legal, tax, or financial advice. IRS policies and refund timelines may change and vary based on individual circumstances. Taxpayers should consult official IRS resources or a qualified tax professional for guidance specific to their situation.