IRS refunds stalled in 2026 and 'Where's My Refund' is not updating
Mar 5th 2026
Millions of taxpayers are seeing stalled refunds and no updates on the IRS tracker as staffing cuts, complex new tax law rules, and state-specific backlogs slow processing across the country.
- Congress cut IRS funding about 9% in January 2026 and the agency lost roughly 25% of its workforce between January and May 2025.
- The IRS had seven commissioners in 2025, adding to leadership instability and operational disruption.
- The 2025 One Big Beautiful Bill Act created retroactive deductions that are still being implemented, increasing refund volume and review needs.
- Analysts estimate the new law could generate about $60 billion in refunds, which the reduced IRS workforce must process.
- State backlogs vary: Oregon delayed paper processing until late March after late IRS forms, South Carolina's tracker is unreliable so use MyDORWAY, and D.C. and New York faced separate legal and software issues that stalled filings.
- If your return is past 21 days, check your IRS account for notices, respond promptly to any IRS correspondence, and e-file when possible to avoid paper backlogs.