Millions of Americans Could Have Tax Refund Payments Delayed

Newsweek - Millions of Americans could see their tax refunds delayed as the Internal Revenue Service breaks away from paper checks. While previously Americans could easily opt for their refund as a physical check, the IRS is now instructing most Americans to add direct deposit information to receive their refunds.

In 2025, the IRS issued more than 93.5 million tax refunds, and 93 percent of those, or around 87 million, were issued through direct deposit. That means there are likely 6.5 million Americans who need to switch over to direct deposit, as the paper check phaseout occurred late last year.

Under the new rules, tax returns filed without direct deposit information will still be processed, but the IRS will temporarily freeze the refund until the taxpayer provides direct deposit information or specifically requests a paper check.

The IRS will also freeze most direct deposits rejected by banks and will not automatically reissue them as paper checks, potentially delaying some refunds by weeks.