IRS Changes Could Delay Tax Refunds for Some New Hampshire Filers

NEW HAMPSHIRE — Tax season is underway, but some Granite Staters could face delays in receiving federal tax refunds under changes announced by the Internal Revenue Service.

An executive order signed last year by President Donald Trump aims to phase out paper checks and money orders for federal payments, including tax refunds, in favor of direct deposit. The policy applies to refunds issued by the IRS, as well as payments from Social Security and the Department of Veterans Affairs.

Beginning in 2026, the IRS said it will continue to process individual income tax returns filed without bank account information, but refunds will be temporarily frozen until the taxpayer provides direct deposit details or requests a paper check.

Taxpayers can update or submit banking information through an IRS Online Account. Those without direct deposit can also request a waiver to receive a paper check. The IRS advises filers to verify routing and account numbers before submitting returns and to set up an online account to respond quickly if a refund is held.

The IRS said most refunds rejected by banks will also be frozen and will not be automatically reissued as paper checks. Taxpayers whose refunds are frozen will receive a CP53E notice outlining the next steps.

The changes do not apply to taxpayers who are minors, incarcerated, deceased, living abroad, or claiming religious exceptions.

More information is available through the IRS.