IRS Refund: The Internal Revenue Service has reported that there will be considerable delays in processing tax refunds meant for use in the last week of April 2025.
The delays which will affect an estimated 2.3 million taxpayers across the nation are attributable to a confluence of system upgrades, increased fraud prevention measures, and surging file volumes at the tail end of tax season.
For taxpayers who need these refunds in their financial planning, the very cause of delays and how to check refund status have gained paramount importance.
IRS Refund Causes of the April Refund Delays
IRS Commissioner, Marcus Reynolds, attributes the backlog to a combination of several contributing factors:
The implementation of Modernized IRS Refund Processing System,
The Legacy Systems Modernization Initiative is closing in on the last part of implementation into the IRS-provided decades-old processing infrastructure.
The transition to newer digital processing systems usually has downtime in the systems with reduced processing capacity during those periods.
“We’re at the final stage of what will be the most important technology upgrade in IRS history,” Reynolds said during a press briefing.
“While these improvements will ultimately speed refund processing and secure it, the transitional period has created temporary bottlenecks in our pipeline.”
This would refer to modern processing systems replacing legacy core systems from the 1960s under a contemporary cloud-based architecture that would accommodate increasingly complex tax filings.
IRS Refund Enhanced Fraud Detection Protocols
Due to an alarming increase in the filing season for early 2025, the IRS introduced enhanced verification procedures for returns with a specific condition.
The added security measures have delayed the processing of about 35% of returns by 3 to 5 days.
New anti-fraud algorithms target the following high-risk indicators:
- Notable changes in income reports against the previous years
- Multiple dependents newly added in returns
- Limited documentation but claimed Earned Income Tax Credit
- Returns filed via ip addresses previously linked to fraudulent activity
While they are vital to defend the Treasury against illicit disbursement, those additional verification steps have contributed greatly to the delays in processing at present.
IRS Refund Unprecedented Late Filing Volume
Between April 1 and April 15, 2025, around 17.8 million tax returns were expected to be filed with the IRS as this would have been a 22% increase from the number reported during the same period a year earlier.
Increased last minute filings have also impacted the processing capability usually reserved for handling amended returns and correspondence.
Combine last-minute filings and system transition process and you have the perfect storm for processing delays,” Treasury Department spokesperson Sophia Martinez noted.
“While it may be unfortunate, it reflects our commitment to modernizing the systems and ensuring that each and every refund is legitimate before disbursing them.”
IRS Refund Timeline for Delayed Refunds
The IRS recently released a revised timetable concerning the April-related processing delays that would affect refunds:
- Returns that has been processed before April 20 would not delay much; most would be expected to issue refunds within 21 days.
- Returns processed between April 20 and 25 would incur additional delays of 5-10 business days.
- Returns processed between April 26 and 30 would incur additional delay of 10-15 days beyond normal timelines.
- Returns filed in paper in the month of April would require an extension of 4-6 weeks beyond expected turnaround time.
Direct deposits are still faster than checks, even with the current delays. Taxpayers getting refunds on checks may expect further delays of 7-10 days for handing over the checks after they finish processing those checks.
IRS Refund How to Verify Your Refund Status
A taxpayer who needs to ascertain the current status of his or her refund has several options available to him:
IRS Online “Where’s My Refund” Tool
The IRS “Where’s My Refund” tool (irs.gov/refunds) is, without a doubt, the most efficient and reliable method for taxpayers to verify information in real time. It provides the latest updates on their refund status, including deposit dates and times. Taxpayers must provide the following information to utilize the tool:
- Their Social Security Number or ITIN
- Filing status (single, married filing jointly, etc.)
- Exact refund amount claimed on the return
Because of the April processing delays, new status designations have been incorporated into the tool:
The estimated timeline in consideration is “Processing – standard timeline”, that may delay rather less.
Slight delays may occur due to the verification processes “Processing – extended review”.
Lesser processing due to modernization-related slowness might involve “Processing – system delay”.
Processing is done, payments are now pending for ‘Approved-Payment scheduled.’
IRS Refund IRS2 Go Mobile App
Through IRS2Go (for iPhones and Androids), taxpayers can not only check refund status through this mobile app, but also receive push notifications when the status of the refund changes.
Through the Automated Phone System
Taxpayers who have no access to the internet have a different option to verify the status of their refund; they can call the IRS refund hotline at 800-829-1954. This automated system provides basic status information undergoing the same verification requirements as for the online tool.
Tax Professional Access
Tax preparers with valid authorization (Form 8821 or Power of Attorney) may be able to learn considerably more about the specifics surrounding delays of the refund through the Practitioner Priority Service.
IRS Refund Special Situations and Expedite Processing
The IRS instituted special procedures that will apply in cases of taxpayers who suffer financial hardship as a result of delays in refunds.
If you are in immediate economic hardship, you may request expedited processing by:
- Calling the IRS Economic Hardship Line at 800-829-1040 to discuss your economic hardship
- Providing documentation of an immediate need such as eviction, utility disconnection, or medical necessity
- Using the enhanced ATR-215 identity verification process.
This means that approved hardship cases usually encounter a processing time reduction of 50 to 70 percent.
But the IRS makes it clear that it does not grant these hardship exceptions liberally in all cases but rather for limited immediate documented need and not just for mere convenience.
Impacting Tax on IRS Refund and Filing Extensions
The IRS has not extended the usual April 15 filing deadline for the 2025 return, notwithstanding the delays in processing.
However, all taxpayers are still eligible to apply for automatic six-month extensions on fishing using Form 4868.
Important points on extensions include:
Extensions for the filing of tax returns do not operate as extensions for the actual payment of tax dues. Therefore, interest and penalties may be levied on outstanding tax liabilities from April 15 Henchforth. Upon the filing of tax returns, extensions do not influence the priority at which refunds are processed.
Uninterrupted by any additional action, taxpayers who have already submitted their tax filings and are waiting for refunds may do so, unless thus particularized contact is made by the IRS, requesting for more information.
Concerning IRS Refund Avoidance to Refund Scam During Delay Duration.
The IRS reported an increase in refund scams targeting taxpayers experiencing processing delays. Common schemes include:
- Phone calls “liberating” delayed refunds for processing fees.
- Email messages “requesting” certain private information for proving one’s eligibility for a refund.
- Text messages with counterfeit “refund tracking” links to harvest personal information.
- Social media ads for “refund advance” loans that come at steep prices.
The IRS stresses that any refund-related communication with taxpayers is never via email or text message or social media. There are no legitimate fees for the release or speeding up of a refund.
IRS Refund Looking Forward: Improvements to the System, Future Filing Seasons
According to the IRS, most of the current delays may create a great nuisance, but the improvements effected in modernizing the system would be of great benefit for future filing seasons.
- For e-filling returns, cut standard processing time from 21 to 14 days.
- Less false positives with improved fraud detection.
- Taxpayer status updates on refunds in greater detail.
- Better digital tools to assist in the resolution of simple issues without calls.
This modernization drive funded via the Inflation Reduction Act is the biggest revamp of IRS technology infrastructure in over 60 years.
The Conclusion of IRS Refund
As millions of taxpayers will be facing delay in refunds in April 2025, patience, and vigilance will continue to play a big part. Checking the status regularly via official channels set up by the IRS would avail them with the best forecast about another refund delivery.
Those readers severely affected financially should contact authorities to speed up processing on the available mechanisms, while being mindful of the foibles of unscrupulous scammers who try to take advantage of desperate taxpayers.
According to IRS, all genuine refunds are being processed, and the additional time being taken is only a temporary after-effect of the system upgrades and not a change in refund eligibility or the computation method.
For more information regarding the refund status, or to report any possible fraud, check the site of the IRS at irs.gov or call the taxpayer assistance line at 800-829-1040 during normal business hours.
FAQS:
What can I do to hasten the refund process?
To lessen any delay, make sure your tax return is error-free, check to see that you have correctly mentioned your banking particulars, and avoid filing a paper return.
Will there be a delay in direct deposit refunds because of this?
If anything, direct deposits could also possibly be late, depending on IRS processing and bank transfer times.