Summary (tl;dr)

"Tax refund" is trending as millions of taxpayers in the United States continue to await their federal refunds following the April 15 filing deadline, with particular delays affecting those who did not opt for direct deposit due to the IRS's new paper check phase-out policy. Additionally, a significant opportunity for COVID-19 related refunds with a July 10, 2026 deadline is prompting widespread interest.

Essential Background

The 2026 tax filing season for 2025 tax returns largely concluded on April 15, 2026, for most individual taxpayers, although extensions are available until October 15, 2026. This season was notably influenced by the "One Big Beautiful Bill Act" (OBBB), enacted on July 4, 2025, which retroactively increased standard deductions, enhanced the Child Tax Credit, and introduced new deductions for tips, overtime income, and auto loan interest, leading many to anticipate larger refunds. A major procedural change this year was the Internal Revenue Service (IRS) beginning to phase out paper refund checks in September 2025, encouraging electronic filing and direct deposit as the primary methods for receiving refunds.

The Full Story

As of late May 2026, "tax refund" is trending due to ongoing processing and notable delays impacting a segment of the filing population. While the IRS reports that most e-filed returns with direct deposit are processed within 21 days, delays are occurring for hundreds of thousands of taxpayers who did not provide direct deposit information and are affected by the new paper check phase-out policy. Approximately 830,000 taxpayers have experienced delays as the IRS sends notices (CP53E) requiring them to update their banking details or face a six-week wait for a paper check. Many individuals have struggled to navigate the online system to provide this information. The average federal tax refund for the 2026 season has been reported between $3,400 and $3,571, an increase from the previous year.

Furthermore, a critical deadline on July 10, 2026, for claiming potential refunds or abatements of penalties and interest related to the COVID-19 federal disaster period, is driving taxpayer attention. This opportunity stems from recent court decisions, such as Kwong v. United States, which clarified a mandatory suspension of certain tax deadlines during the pandemic. Lastly, in an international development, Brazil's Federal Revenue Service also opened inquiries on May 22, 2026, for its largest-ever first batch of income tax refunds, totaling R$16 billion for 8.7 million people, with payments scheduled for May 29.

Why It Matters

The trend highlights the significant financial impact of tax refunds on individuals, with the average refund amount being substantial for many households. The ongoing delays, particularly for those accustomed to paper checks, underscore the challenges of adapting to new IRS policies and the importance of accurate and complete filing information. For millions, missing the July 10 deadline for COVID-19 related claims could mean forfeiting potentially significant refunds or penalty abatements. These trends collectively emphasize the need for taxpayers to stay informed about their refund status and upcoming deadlines to ensure they receive their entitled funds.

Geographic Location

• United States (federal tax season, IRS operations, One Big Beautiful Bill Act implications, COVID-19 related refund claims, and processing delays for non-direct deposit refunds)
• Tennessee, United States (tax relief and extended deadlines for taxpayers affected by Winter Storm Fern)
• Brazil (Federal Revenue Service's release of the first and largest income tax refund batch)