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Essential Steps for U.S. Tax Registration for Startups
February 18, 2026
Eager to launch your startup? Understand the essential steps for U.S. tax registration, ensuring compliance and paving the way for your business success!
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Tax refunds affect household and business cash flow. In 2026, several policy and operational factors could push refund dates past what many taxpayers expect. This guide breaks down the IRS refund schedule, typical processing windows, the most common reasons returns get held up, new direct‑deposit rules, how to track your refund, and practical steps if yours is late. Read on to plan with confidence and avoid common pitfalls.
The IRS's Priority Guidance Plan summarizes the strategic priorities that shape tax guidance and operational choices for 2025–2026.
IRS 2025-2026 Priority Guidance Plan & Refund Factors
Notice 2025-19 outlines the factors the Treasury and IRS use when selecting projects for the 2025–2026 Priority Guidance Plan — for example, whether a project addresses a pressing compliance issue or requires clarifying guidance for taxpayers. Letter from Jeffrey Kadet to the Internal Revenue Service Re: Notice 2025-19, 2025-2026 Priority Guidance Plan, 2025.
The IRS publishes expected processing windows that help taxpayers set expectations. In 2026, e-filed returns are generally processed fastest, while paper returns usually take longer because of manual handling. Knowing these timelines helps you plan bills, payroll, or business cash flow.
For most e-filed returns in 2026, the IRS aims to complete processing within 21 days. Paper returns typically require six to eight weeks or more, especially if the return contains errors or needs extra review. Simple mistakes — typos, mismatched Social Security numbers, missing signatures — are common causes of added delay.</p
Refunds claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) follow additional verification steps. For 2026, the IRS generally begins releasing EITC and ACTC refunds in mid‑February — typically no earlier than February 15. If the IRS needs more information, these refunds can be held longer.
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Several recurring issues slow refunds each year. Understanding them lets you reduce the chance your return will require extra review.
When reported income, deductions, or identification details don’t match IRS records, returns get flagged for review. Those reviews add days or weeks to processing. Carefully checking numbers, names, and Social Security information before filing cuts risk.
Credits like the EITC and ACTC require additional validation and are therefore more likely to trigger delays. Identity‑theft cases also slow the process: if the IRS suspects fraud it will pause the refund while it investigates. Protect your personal data and act quickly if you suspect identity misuse.
Research and IRS guidance explain how processing timeframes, direct deposit procedures, and identity‑theft prevention intersect with refund timing.
IRS Refund Processing Time & Direct Deposit Insights
Allowing more time for the IRS to issue refunds — by check or direct deposit — gives staff the opportunity to reconcile W‑2 data on returns with W‑2 filings submitted by employers.
Identity Theft Tax Refund Fraud: An analysis of the fraud schemes using IRS investigation summaries, MJ Nigrini, 2018
In 2026 the IRS updated rules related to direct deposits, and small errors in banking details can now have a bigger impact on timing. If you expect a direct deposit, make sure account information is accurate before filing.
The IRS requires correct bank routing and account numbers for direct deposit. Entering the wrong digits, selecting the incorrect account type, or transposing numbers can cause the deposit to fail and add time to delivery.
If a direct deposit can’t be completed, the IRS will generally reissue the refund as a paper check. That creates extra mail time and administrative processing, so what could have been a same‑week deposit can turn into several additional weeks.
Stay informed by checking official tools and keeping your documentation handy. That’s the fastest way to understand where your refund stands.
Use the IRS "Where's My Refund?" portal to get the most current status. The tool updates once per day (usually overnight). For accurate results, enter the same information you used on your return.
To check your refund, have the following ready:
Keeping these details at hand speeds the lookup and reduces confusion when speaking with support.
If your refund hasn’t arrived when expected, follow a short checklist to diagnose and resolve the issue.
If the IRS tool still shows "processing" well past the usual timeframe, contact the IRS. Call during quieter hours (early morning or later in the week) and have your return details, notices, and proof of identity ready to help the agent assist you faster.
Prodezk supports international entrepreneurs and small businesses with tax compliance, accurate filings, and IRS communications. With more than 24 years’ experience, our team helps reduce errors, verifies credits, and guides clients through IRS requests so refunds move as quickly as possible.
Large, system‑level events outside your control can affect processing speed. Being aware of them helps you set realistic expectations.
A government shutdown or funding uncertainty can limit IRS staffing and slow operations. During funding disruptions, returns may take longer to review and refunds may be delayed — sometimes across broad swaths of filings.
Fewer staff means longer queues for review and manual tasks. Workforce reductions — whether temporary or ongoing — stretch processing times, especially during peak filing periods.
First, check the IRS "Where's My Refund?" tool. If the tool shows continued processing beyond typical windows, contact the IRS. When you call, have your return details and any IRS correspondence ready. Calling during off‑peak times (early morning or later in the week) often shortens hold times.
After filing, you generally cannot change direct deposit details with the IRS. If the account information is incorrect, the IRS will usually issue a paper check instead, which takes longer to arrive. To avoid that, double‑check account and routing numbers before you file.
E‑file whenever possible and choose direct deposit for faster delivery. Verify all names, Social Security numbers, and ps before submitting. If you claim credits that require verification, gather supporting documents in advance. Filing early also helps you avoid peak‑season bottlenecks.
A shutdown can reduce IRS staffing and slow processing of returns and refunds. Even if core systems remain online, manual reviews and customer‑service responses may be delayed. Monitor news about funding and plan for possible delays.
If your identity is compromised, the IRS may pause your refund while it investigates to confirm the return’s legitimacy. That investigation can add weeks or months. If you suspect fraud, act quickly to report it and protect your accounts.
Contact the IRS immediately and follow their identity‑theft procedures. You may need to file Form 14039, Identity Theft Affidavit, and place fraud alerts on your credit reports. Monitor accounts closely and consider an identity‑protection service if you’ve experienced fraud.
Tax law changes can introduce new credits or alter eligibility for existing ones, which may affect refund timing. Stay current via the IRS website or consult a tax professional to understand how new rules might apply to your situation.
Refund timing in 2026 will depend on how returns are filed, whether credits require verification, and broader operational factors at the IRS. You can reduce risk by e‑filing, double‑checking details, and using the IRS "Where's My Refund?" tool. If you need help preventing or resolving delays, Prodezk’s team is ready to assist — explore our resources or contact us for personalized support.
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