Even though the government has reopened, many taxpayers are discovering that things at the IRS haven’t bounced back to normal just yet. The shutdown may have ended, but its after-effects are still being felt — especially when it comes to processing tax returns, issuing refunds, responding to letters, and resolving taxpayer issues.
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If you’re wondering whether your refund will arrive on time this year, or you’ve been waiting months for the IRS to reply to a letter, you’re not imagining things. The IRS is working through a significant backlog, and these delays may affect when you receive your refund or how quickly your tax issue is resolved.
Here’s what’s going on behind the scenes — and how you can protect yourself as we move into the next filing season.
What Happened During the Shutdown (and Why It Still Matters)
During the government shutdown, the IRS paused or significantly limited many of its operations. While automated systems continued running — such as electronic filing and direct-deposit refunds — most IRS departments rely heavily on staff.
That means:
- Paper returns didn’t get processed
- Mail piled up (including anything you mailed back in response to an IRS notice)
- Audits, appeals, and collections were largely put on hold
- Phone lines and taxpayer assistance centers were closed or extremely limited
Meanwhile, tax deadlines did not change. Individuals and businesses still had to file and pay on time — even though IRS staff weren’t there to handle the incoming work.
Now that employees have returned, they’re facing months’ worth of paper, correspondence, and pending cases. As a result, the agency is warning taxpayers and tax professionals to expect slower-than-normal processing times.
How Long Are IRS Delays Right Now? (Realistic Timelines)
While the IRS is actively working through its backlog, taxpayers should prepare for longer processing times across multiple areas. Here’s what you can expect based on current trends.
Individual Tax Returns
- E-filed returns: About 21 days for processing if there are no errors.
- Paper-filed returns: Roughly 3–4 weeks, but returns requiring manual review could take months. Special-handling cases (such as returns involving deceased taxpayers or identity issues) may take a year or more.
Amended Returns (Form 1040-X)
- Typically 6–9 weeks, since these are processed entirely by hand.
Business Returns
- Paper business returns are taking about 6–9 weeks, depending on the type of return and whether additional review is required.
Tax-Exempt Organization Applications
- Short-form applications: 1–2 months
- Long-form applications: 6–9 months
Many nonprofit submissions from earlier in the year are still in line.
Identity-Theft Affidavits (Form 14039)
- Resolution is currently taking 12–16 months — some of the longest delays in the system.
IRS Correspondence (Letters, Notices, Responses)
- Individual correspondence: Roughly a 6-month backlog
- Business correspondence: Approximately 9 months behind
If you mailed a response to a notice and haven’t heard back, this is likely why.
Audits, Collections, & Appeals
These departments have reopened, but they are moving slowly. If your case was paused during the shutdown, expect a longer road to completion.
What This Means for You (The Key Takeaways)
These delays can affect taxpayers in several ways — especially if you’re expecting a refund or have a time-sensitive issue with the IRS. Here’s what to keep in mind.
1. Your refund may take longer than usual.
The fastest path is still:
- Filing electronically
- Using direct deposit
- Ensuring your return is accurate and error-free
Paper returns, or anything requiring manual review, will move much more slowly.
2. If you mailed anything to the IRS, expect a long wait.
This includes:
- Responses to IRS notices
- Identity-theft affidavits
- Power-of-attorney forms
- Amended returns
- Audit documentation
It may take months before the IRS updates your case status.
3. If you’re dealing with audits, appeals, or collections, be patient (and proactive).
These departments are still catching up. It’s a good idea to:
- Maintain copies of all documents
- Mark any deadlines on your calendar
- Follow up if the IRS doesn’t respond within a reasonable timeframe
4. Complex or special situations may take especially long.
That includes:
- Nonprofit applications
- Estate and trust filings
- Returns requiring identity verification
- Anything involving paper or manual processing
5. Filing early helps.
Even though processing is slow, filing sooner puts you closer to the front of the line.
How to Avoid IRS Delays (As Much as Possible)
While you can’t fix the IRS backlog, you can take steps to make your own experience smoother.
✔️ File electronically whenever possible
E-filed returns move through the system much faster than paper returns.
✔️ Choose direct deposit for your refund
This avoids delays caused by paper checks.
✔️ Double-check your return before filing
Simple mistakes — such as an incorrect Social Security number or mismatched income figures — can trigger manual review and months-long delays.
✔️ Keep documentation for anything you mail
Use certified mail or save electronic proof of mailing.
✔️ Follow up if the IRS has been silent for too long
Given today’s delays, it’s reasonable to check in if:
- You haven’t heard back in several months
- You have an open case involving a deadline
- A refund or credit adjustment is taking unusually long
✔️ Plan ahead if you rely on your refund
If a tax refund is part of your budgeting, savings plan, or retirement cash flow, build in extra time — this year may not follow the usual IRS timeline.
What to Expect This Coming Tax Season
Because the IRS is still catching up, some experts expect:
- A slightly later start to the filing season
- Slower processing of returns filed early in the season
- Continued delays in paper-based tasks
- Extended phone hold times
If Congress passes additional tax-related legislation, that may also introduce new forms the IRS must implement — adding to delays.
Stay Prepared and Stay Patient
The good news? The IRS is working through the backlog, and most electronically filed returns will still be processed within a reasonable timeframe.
The not-so-good news? Paper returns, amendments, identity-theft cases, and correspondence may take significantly longer this year.
With a little planning — and a clear understanding of what to expect — you can navigate this unusual tax season with fewer surprises. Filing early, using e-file and direct deposit, and keeping good records will give you the best chance of avoiding delays.
If you have questions about how IRS processing times might affect your financial plans, your bank or tax professional can help you prepare and stay informed.
