Early February 2026 brings the start of tax season frustrations for some filers as IRS refund processing hits snags for certain returns. While most e-filed refunds with direct deposit still arrive in under 21 days, new rules on banking info, PATH Act holds, and potential staffing pressures are causing temporary freezes or longer waits for a subset of taxpayers. The IRS and Taxpayer Advocate Service (TAS) are highlighting these issues to help avoid surprises. Here’s what’s driving slowdowns right now, who’s impacted, and steps to get your money faster.
Main Reasons for Refund Slowdowns in February 2026
The IRS processes the majority of returns smoothly, but specific changes and rules create holds for some. Key culprits this week:
- Direct Deposit Changes & Missing/Invalid Info — Starting 2026, the IRS freezes refunds if no valid bank details are provided or if direct deposit gets rejected. No automatic switch to paper checks anymore—taxpayers get a CP53E notice and 30 days to update via IRS Online Account. If ignored, a paper check may mail after six weeks. This stems from Executive Order 14247 phasing out paper refunds (effective Sept. 30, 2025).
- EITC & ACTC Holds — Refunds claiming Earned Income Tax Credit or Additional Child Tax Credit remain frozen until mid-February under PATH Act rules. Most direct deposit refunds should hit by March 2, 2026, with projected dates showing in Where’s My Refund? by February 21, 2026 for early filers.
- Extra Review or Errors — Returns with math mistakes, SSN mismatches, identity verification needs, or complex claims (e.g., from recent tax law changes) trigger manual checks, pushing timelines beyond 21 days.
- Potential Staffing & External Pressures — Reports note IRS staffing down ~27% from prior levels, plus ongoing government funding talks that could furlough workers and slow processing if unresolved. Amended returns and some paper filings already average months in backlogs.
Who’s Most Likely Affected This Week
- Filers without direct deposit setup or with rejected banking info (refund frozen until updated).
- Those claiming EITC/ACTC (full hold until early March).
- Paper filers or those with errors/complex deductions (longer manual review).
- Returns hit by identity theft flags or offsets (e.g., debts).
Most straightforward e-filed returns with good direct deposit info sail through in 21 days or less.
Current Timeline & Estimated Arrival Windows
| Scenario | Typical Processing Time | Notes for February 2026 |
|---|---|---|
| E-filed + Direct Deposit (no issues) | Under 21 days | Fastest; most arrive mid-February onward |
| EITC/ACTC Claims | By March 2 (direct deposit) | Hold lifts mid-Feb; check by Feb 21 |
| No/Invalid Direct Deposit | Frozen + up to 6 weeks for paper | Update via IRS account to unfreeze |
| Paper Filed or Extra Review | 6+ weeks | Slower due to manual handling |
| Amended Returns | 5–13+ months (average) | Significant backlogs persist |
Steps to Avoid or Fix Delays This Week
Double-check routing/account numbers before filing—use IRS Online Account to update if frozen. E-file early and accurately to minimize errors. Track via Where’s My Refund? (status in 24 hours post e-file) or IRS2Go app. If frozen, respond to CP53E notice quickly or call 1-800-829-1040 for paper check waiver (limited cases). Avoid scams—IRS contacts by mail only; ignore texts/emails promising faster refunds.
FAQs – IRS Refund Delays February 2026
- Why is my refund frozen this week? Likely missing/invalid direct deposit info—IRS holds until updated (new 2026 rule).
- When do EITC/ACTC refunds release? By March 2, 2026 for most direct deposit; projected dates by Feb 21.
- How long if no direct deposit provided? Refund frozen; paper check after ~6 weeks if no action.
- Does government funding talk affect refunds? Possible if shutdown extends—reduced staff slows processing.
- What if my refund is delayed beyond normal? Use Where’s My Refund? for status; contact IRS only after expected window.
Conclusion
While the IRS handles most refunds smoothly in under 21 days, February 2026 sees slowdowns for filers missing direct deposit details, claiming certain credits, or facing reviews—thanks to new payment rules and ongoing pressures. File electronically, verify banking info, and track via official tools to minimize waits. Head to IRS.gov for personalized status and updates—your refund is processing, but proactive steps keep it moving.