New IRS rule could lead to big problems getting tax refund checks

For many taxpayers, IRS refunds are a crucial source of income that can be used to pay down debt or cover major expenses. The refunds serve as a form of forced savings because you pay in all year long and then get a large lump sum back in April.

Putting aside the fact that it’s actually your own money being returned to you, and that giving the IRS an interest-free loan actually isn’t the best idea, the unfortunate reality is that many people anticipating refunds will find that their money comes later than expected. 

That’s because of a new IRS rule going into effect this year. This new rule could end up delaying refunds for weeks, which is a huge problem if you assume the money will arrive as quickly as it has in the past. 

This new IRS rule may mean big delays for tax refunds 

The new IRS rule that may affect refunds issued in 2026 concerns the government’s efforts to eliminate paper checks, except in very limited situations. 

Specifically, the “Modernizing Payment To and From America’s Bank Account” executive order, signed in 2025 by President Doland Trump, requires that all federal agencies, including the IRS, move away from issuing paper checks. 

The IRS will now issue refunds only if you provide bank account information, including the correct direct deposit information. 

What happens to your tax refund if you don't provide direct deposit information?

If you submit a tax return without the required direct deposit information, industry watchers indicate that the IRS will still process your initial income tax return. 

However, the IRS won't automatically issue any refund that is due.

Related: IRS issues stern warning for taxpayers claiming 2 popular credits

Instead, the refund will be temporarily frozen until you do one of two things.

• Provide direct deposit information.
• Submit a request for a paper check.

Since the payment won’t be sent automatically right away after your return is processed, this could result in your refund being significantly delayed. 

What will happen if your tax refund is frozen?

If the IRS freezes your refund, the IRS will send you a written notice requesting that you provide your missing direct deposit information. You will have 30 days to respond. 

If you don't submit a response, either by providing your direct deposit details or requesting a paper check, then the IRS will eventually issue a paper check by default. However, this will not happen for at least six weeks. 

How can you make sure your tax refund isn’t delayed? 

So, what can you do to make sure that you don't end up waiting weeks for the IRS to send the money that you’re counting on?

The best thing to do is to make sure that you provide the required direct deposit information to the IRS when you initially submit your return.

More Personal Finance:

• Suze Orman’s 5 best pieces of financial advice
• Dave Ramsey shares key insight on mortgage rates
• Jean Chatzky makes key statement as Social Security change looms

Getting a refund via direct deposit will always be the fastest way to get your money back, and in 2026, that is more true than ever. If you submit an accurate return and provide your direct deposit information, you should receive your refund within 21 days. 

If you do not have a checking account, you also have the option to provide information for your debit card, or for your preferred mobile payment app that provides an account and routing number.

Making sure to provide these details will get the money into your bank account quickly, so you can finally start using the cash you've let the IRS hold all year long. 

Related: TSA offers expensive fix for a major travel problem