IRS Refund Delay and Real-Time Tax System

The Internal Revenue Service needed to put the brakes on its tax refunds this tax season when newly installed filters to prevent tax fraud and identity theft held up processing for a week or more.

The IRS sent out a notice to tax professionals last Thursday apologizing for the delay. The IRS noted that the delay only affects some early filers, and taxpayers whose returns were accepted by the IRS on or after January 26 would not experience the delay. Their tax returns would be processed normally.