Tax refund delays are hitting taxpayers in several states and Washington, DC this filing season, and the scope of those tax refund delays turns out to be wider than most people anticipated. Budget cuts, software failures, and an active legal standoff between DC and the federal government all play a role. If you’ve been checking your tax refund status and nothing has moved yet, your state may well be on this list.
Richard Pon, certified public accountant in San Francisco, stated:
“State tax conformity will be the biggest hurdles as some states conform, some don’t conform and some only partially conform to Trump’s new tax laws.”
Idaho is dealing with tax refund delays of up to six weeks right now, after budget cuts reduced the state’s temporary tax season workforce. Gov. Brad Little also didn’t sign the state’s federal conformity bill until Feb. 11 — well after the IRS tax season kicked off on Jan. 26 and more than 158,000 residents had already filed their returns.
Tax Commission Chairman Jeff McCray stated:
“The changes to forms and systems normally take nine months for the Tax Commission to complete. However, it’s a priority for us to make the updates and provide a plan for taxpayers to follow as soon as possible.”
Tax return delays in Oregon are also a real issue at the time of writing. The Oregon Department of Revenue won’t start processing paper returns until at least the end of March, and the first refunds won’t go out until early April. The department said the IRS delivered the necessary forms and data later than expected, which pushed back the state’s ability to update its own computer systems — and the tax refund delay 2026 situation there looks set to drag on for paper filers well into spring.
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New York filers ran into a TurboTax software issue that was supposed to clear up by Feb. 4 but reportedly stopped some early returns from going through at all. Those returns reportedly still sit in a processing loop, adding to the tax refund delays for anyone who filed in January or early February.
South Carolina chose not to conform to Trump’s new tax laws, so the state now requires taxpayers to manually add back tip and overtime deductions on their returns. Miss that step and you may need to file an amended return — which pushes the tax refund delays there out even further.
Source: Watcher Guru