If you’re still waiting for your tax refund in May 2025, you’re not alone. Due to staff cuts and a large number of paper tax returns, the Internal Revenue Service (IRS) is facing major delays in processing certain filings—especially those submitted around the April 15 tax deadline.
The problem has mostly affected paper returns and taxpayers with expired or recently renewed ITINs (Individual Taxpayer Identification Numbers).
Let’s break down what’s causing the delays, who is affected, and when you can expect your refund.
Why Are IRS Refunds Delayed in May 2025?
The IRS is currently handling returns that were filed in March 2025, which means many of the returns submitted in April—especially close to the deadline—are still in line. Paper returns take longer to process than electronic ones because they must be checked manually.
This year, the IRS received around 12 million paper returns between March and April, and 60% are still pending. This backlog is largely due to a staff reduction of 6,000 employees, which cut processing capacity by 18%.
Who Is Affected by These Refund Delays?
People most affected include:
- Taxpayers with expired or newly renewed ITINs
- Those who submitted paper returns near the April 15 deadline
- People claiming special tax credits like the EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit)
- Taxpayers with errors or incomplete information in their returns
For example, those with ITIN renewals face extra delays because verification takes 7 to 11 weeks, especially if submitted after April. Paper returns also take longer, with current average wait times reaching 6.3 weeks—a jump from the usual 2-6 weeks in previous years.
When Can You Expect Your Refund?
According to the IRS:
- Electronic returns with direct deposit are processed in 10–21 days
- Paper returns take up to 8 weeks
- About 1.2 million cases could take until July due to errors or missing information
The IRS has hired 2,000 temporary workers to help speed things up, but training takes time, so results may not show until June.
ITIN Holders Face More Delays
People who file taxes using an ITIN—especially non-U.S. citizens or residents—are seeing longer delays, mainly because many did not renew their ITIN before April. 22% of ITIN filers submitted renewals late, creating a bottleneck in processing.
Many affected taxpayers are from Hispanic communities, particularly in California, Texas, Florida, and Arizona, where a large number of tax filers rely on ITINs. Language barriers and lack of help make the situation worse, especially when errors happen in bilingual forms.
Complaints Rising as Refunds Are Delayed
Compared to 2024, complaints about refund delays are up by 34%, with 45% of cases involving ITIN issues or form errors. Only 12% of affected taxpayers received compensation for delayed refunds this year—down from 18% in 2024.
The Taxpayer Advocate Service reports that by May 2025, the IRS had issued 87% of refunds within 6 weeks, down from 92% in 2024. While electronic filing is still the fastest and most reliable method, paper filers are stuck in longer queues.