Markets
June 2, 2026
MoneyGram Launches MGUSD Stablecoin on Stellar as Crypto Payment Rules Advance
Key Takeaways
- The average IRS tax refund is $3,268 in June 2026 up 8% from last year but nearly 1 million taxpayers have frozen refunds due to missing bank info
- The IRS phased out paper checks this year and sent CP53E notices to taxpayers who did not submit direct deposit info will frozen for 2 months
- Extension filers in disaster areas and paper filers are also still waiting with paper returns now taking 8-12 weeks to process in June 2026
Taxpayers who filed on April 15 should already have their refund in the bank. The average IRS tax refund in June 2026 sits at $3,268, roughly 8% higher than at the same point last year, and for most people who e-filed with direct deposit, that money came and went weeks ago. But nearly a million Americans are still waiting, and the reasons are specific: a new banking rule that quietly froze refunds, disaster-area extensions that pushed deadlines into May, and paper returns still grinding through an understaffed processing pipeline. The One Big Beautiful Bill Act drove the larger refunds this year by introducing new deductions including overtime pay exclusions, as previously reported. If you are still using Where’s My Refund and seeing no movement, here is exactly what is happening and what to do.
Also Read: 2026 Tax Refund Schedule: When to Expect Your Bigger Refund
Nearly 1 Million Taxpayers Got a CP53E Notice and Their Refund Is Frozen
The biggest reason taxpayers are still waiting in June is a rule change that caught a lot of people off guard. As part of a federal push to modernize government payments, the IRS has been phasing out paper refund checks. An executive order signed by President Trump directed that all federal disbursements shift to electronic systems, and that also applies to your tax refund.
If you filed without including direct deposit bank account information, or if your bank rejected the deposit due to a wrong routing or account number, the IRS did not mail you a paper check automatically like it would have in prior years. Instead, the IRS froze your refund and sent you a CP53E notice. The IRS also issues the notice when it corrects a return with a balance due that ends up resulting in a refund, such as through unreported estimated payments or math error corrections.
What a CP53E Notice Means for Your IRS Tax Refund
The CP53E is not a denial. It is the IRS telling you it cannot complete the payment and needs you to act. Once you receive it, you have 30 days to log in to your IRS Online Account and either add new banking details or request a paper check waiver. If you do not respond, the IRS will issue a paper check after six weeks, though that process can take considerably longer.
The IRS’s full explanation of what triggers the notice and what steps are required is available on the official Understanding Your CP53E Notice page at IRS.gov.
Democrats on the House Ways and Means Committee sent a letter to Treasury Secretary Scott Bessent and IRS leadership in March, flagging just how difficult the situation was for affected filers. Reps. Danny K. Davis and Terri A. Sewell wrote:
“Having reviewed the IRS notice and called the IRS phone lines, we learned that there is no simple process for these taxpayers to request an immediate release of their refund by paper check without waiting at least 10 weeks.”
They also added:
“Effectively, the President, unilaterally through his Executive Order, is causing undue hardship on millions of Americans by delaying their paper refunds for months.”
The Taxpayer Advocate Service had also warned early in the season that the freeze would catch filers off guard, particularly those who historically relied on paper checks or simply left the banking section of their return blank. At the time of writing, nearly a million taxpayers have been sent CP53E notices. For those who filed close to April 15 and did not respond quickly, the 10-plus week delay means their checks may finally be arriving right now.
Also Read: Earned Income Tax Credit Delay Leaves Taxpayers Waiting
How to Respond to a CP53E and Unfreeze Your Refund
Taxpayers who received a CP53E notice have a narrow window to act. The IRS issued the notice because it could not complete your direct deposit, either due to missing banking information or a rejected deposit. Your IRS tax refund 2026 will stay frozen until you resolve it through your IRS Online Account. There is no alternative route. Phone calls will not move it forward and waiting it out means a paper check that could take 10 or more weeks to arrive.
The full process takes about 5 minutes if you have your bank routing and account number ready. Before you log in, check that the account is in your name or a joint account you share. A family member’s account will not be accepted and you only get one attempt, so double-check the numbers before you submit.
If you have the notice and have not acted yet, here is what to do:
Two More Groups of Taxpayers Still Waiting in June
Disaster Area Filers Are Only Now Entering the IRS Refund Schedule
A separate group of taxpayers is waiting for a completely different reason: a federally declared disaster extended their filing deadline. Residents in parts of Alaska, Montana, and Washington state, affected by storms and flooding late last year, had until May 1, 2026 to file. Additional disaster-related deadlines apply to taxpayers in Mississippi, Hawaii, and Georgia depending on the specific event. The full and updated list of affected states and localities is published on the IRS Tax Relief in Disaster Situations page.
Because the IRS accepted those returns in late April or early May, the standard 21-day processing window for e-filed returns puts their refunds squarely in June. That is the IRS refund schedule playing out as expected, just starting later than for April filers. For context on how the 2026 tax deadlines and extensions were set up from the beginning of filing season, see our earlier coverage of when taxes were due in 2026.
Paper Filers Are Looking at 8 to 12 Weeks
Taxpayers who mailed in their returns are also still waiting, and that wait is longer than it used to be. The IRS takes six or more weeks to process mailed returns under normal conditions, according to the Refunds overview page.
Right now, conditions are not normal. National Taxpayer Advocate Erin M. Collins had this to say at the start of the 2026 season:
“Entering 2026, the landscape is markedly different. The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes mandated by the [One Big Beautiful Bill] Act, many of which apply retroactively and require significant IRS programming, guidance, changes to tax forms and instructions, and taxpayer education.”
For a paper filer who submitted around April 15, the 8 to 12 week estimate puts their IRS tax refund 2026 arrival anywhere between mid-June and early July. It is also worth noting that some taxpayers may be sitting on a separate refund opportunity entirely: millions of Americans may still be eligible to claim back COVID-era penalties assessed during the disaster period, with a July 10 deadline to file, as previously reported in our coverage of the IRS COVID tax refund July 10 deadline.
How Taxpayers Can Check Their Refund Status Right Now
The Where’s My Refund tool at IRS.gov is the fastest and most reliable way to track your payment. The IRS updates it once per day, overnight. You will need:
| What You Need | Where to Find It |
|---|---|
| Social Security number or ITIN | Your tax documents |
| Filing status | Your return (single, married, etc.) |
| Exact refund amount (whole dollars) | Your filed return |
Status is available within 24 hours of e-filing acceptance. Paper filers generally need to wait about four weeks before anything shows up in the system. Calling the IRS will not speed up your refund. The information available to phone assistors is the same as what the tool shows.
Other Ways to Track Your IRS Tax Refund 2026
The IRS processed over 36.5 million refunds by the week ending February 27, 2026, with the average direct deposit refund hitting $3,739. The gap between that early-season figure and the current $3,268 average reflects the broader mix of taxpayers still working through the pipeline. The Big Beautiful Bill tax refund changes also play into the bigger numbers this year, as the law expanded deductions for millions of working Americans.
Other ways to check your IRS tax refund 2026 status:
- IRS2Go mobile app
- Automated refund hotline: 800-829-1954
- IRS Individual Online Account at IRS.gov
If the online portal has not resolved your frozen refund after two months, call 800-829-1040 and ask a customer service representative to process a paper check waiver for you. And if you have been following the broader IRS news this season, it is worth noting that a separate controversy has been unfolding: a quiet DOJ settlement granted the Trump family and Trump Organization entities protection from existing IRS audit claims.
Also Read: Millions of Americans Could Claim IRS COVID Tax Refund Before July 10 Deadline
