GAO reports 17% rise in 2026 tax refunds after Trump tax law
The GAO found that refunds issued by the IRS during the 2026 filing season grew 17% to $296 billion, driven by new deductions in President Trump's tax legislation.
A Government Accountability Office report shows the IRS issued $296 billion in refunds during the 2026 filing season, marking a 17% rise and $43 billion more than the previous year. The increase is linked to new deductions created by President Donald Trump's One Big Beautiful Bill Act, including provisions for qualified tips and overtime. The agency processed about 98% of the 177 million individual and business returns it received, but paper-check refunds experienced significant delays, often taking weeks longer than direct deposits.
The number of paper-check refunds fell sharply, and those who received checks waited an average of 36 days, compared with 13 days a year earlier. Staffing shortages and technology issues hampered the IRS's Submission Processing unit, which operated with 18% fewer employees than the prior season, leading to longer processing times for business and individual paper returns. To mitigate delays, the IRS urged taxpayers to provide bank information for electronic refunds, sending millions of notices and seeing a surge in online tool usage.
Why it matters
Higher refunds affect millions of taxpayers and highlight IRS staffing and technology challenges.
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