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FundsForBudget > Debt > 5 Tax Filing Triggers That Are Slowing Refunds for Seniors This Year
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5 Tax Filing Triggers That Are Slowing Refunds for Seniors This Year

TSP Staff By TSP Staff Last updated: February 4, 2026 6 Min Read
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For decades, filing taxes was a predictable ritual: mail in the return or e-file it, and wait 21 days for the check to arrive in the mailbox. In 2026, that predictable timeline has broken down for millions of seniors. The IRS has implemented aggressive new fraud filters and modernization mandates that disproportionately affect older filers who stick to traditional habits.

This year, a return that is perfectly accurate can still be pulled from the processing line and frozen for weeks simply because it triggered a “review flag.” These triggers are often automated, sparked by missing digital data points or the use of paper forms. If you are wondering why your “Where’s My Refund?” status hasn’t moved, you likely tripped one of these five new filing alarms.

1. The “Paper Check” Freeze (Notice CP53E)

The single biggest cause of delay this year is the IRS’s aggressive push to eliminate paper checks. Under new “Modernizing Payments” protocols, the IRS is temporarily freezing refunds for filers who do not provide direct deposit information.

In the past, if you left the bank info blank, they simply mailed you a check. Now, that blank field triggers a “soft freeze.” You will receive Notice CP53E in the mail asking you to log in to an online account to provide bank details. If you ignore this notice (or don’t see it), the IRS will eventually release a paper check, but only after a mandatory 6-week delay. For seniors who don’t trust online banking, this new rule effectively adds a month and a half to their wait time.

2. The ID.me Verification Loop

To combat identity theft, the IRS now requires rigorous identity proofing to access online tools or verify certain returns. This is managed by a third-party service, ID.me, which uses facial recognition and smartphone scans.

For many seniors, this technology is a hurdle. If your return is flagged for identity verification (Notice 5071C), you must pass the ID.me scan to unlock it. Seniors with older phones, shaky hands, or poor lighting often fail the biometric scan, forcing them into a “video chat” queue with wait times exceeding four hours. Until you pass this digital gatekeeper, your refund sits in indefinite limbo.

3. The “Retroactive” Deduction Manual Review

The passage of the One Big Beautiful Bill Act (OBBBA) introduced several tax changes that were made retroactive to January 1, 2025. This includes the new $6,000 Senior Deduction for certain filers.

Because these changes were finalized late, the IRS’s automated computer systems (ACR) often struggle to reconcile the new deduction with older income data. Returns claiming these new retroactive benefits are being kicked out for “manual review” at a higher rate. Unlike an automated check, a manual review requires a human employee to look at your file, a process that can take 120 days or more due to staffing shortages.

4. The 1099-K “Mismatch” Flag

Confusion over the 1099-K reporting threshold is causing massive processing jams. While the federal threshold was reverted to $20,000, many states (like Massachusetts, Vermont, and Virginia) kept their thresholds at $600.

If you sold personal items on eBay or Facebook Marketplace and did not report it because you were under the federal $20,000 limit, but your state sent a copy of a 1099-K to the IRS, the computer sees a mismatch. It flags your return for “underreported income.” Even though the federal law is on your side, the discrepancy forces the return into a review queue until the computer logic can be overridden, delaying your refund while the systems talk to each other.

5. The Energy Credit “Documentation” Audit

Seniors who claimed the Residential Clean Energy Credit (for solar, windows, or heat pumps) are facing new scrutiny. In 2026, the rules for these credits became strictly “tech-neutral” and require specific documentation regarding “domestic content.”

If you filed a paper return and attached the credit form (Form 5695), the IRS’s optical scanners often cannot read the attached receipts or certification letters. This triggers a correspondence audit (Letter 566-S) asking for physical proof of the installation. Electronic filers face fewer issues, but paper filers claiming these credits are seeing their refunds frozen until they mail in duplicate copies of their invoices.

Check Your Mailbox, Not Just the Web

If your refund is delayed, the explanation is likely sitting in your physical mailbox. The IRS sends notices (CP53E, 5071C) via USPS before updating the online tool. Open every piece of mail from the Treasury Department immediately—ignoring a “Request for Information” is the fastest way to turn a delay into a denial.

Did you receive a CP53E notice demanding direct deposit info? Leave a comment below—tell us if you switched or waited for the check!

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