Lawmakers Press Treasury for Answers as Delayed Refund Crisis Grows

Washington, D.C. - Mounting frustration over widespread tax refund delays has prompted a forceful response from senior members of the House Ways and Means Committee. Oversight Subcommittee Ranking Member Terri A. Sewell (AL‑07) and Worker and Family Support Subcommittee Ranking Member Danny K. Davis (IL‑07) are demanding transparency from the Department of the Treasury after more than 1.4 million taxpayers received notices that their refunds are being held-many for months.

The lawmakers say Treasury Secretary Scott Bessent has refused to answer basic questions about the notices, despite repeated outreach. Their latest letter follows an earlier request for information that went unanswered, including a March 23 deadline that Treasury ignored.

According to Sewell and Davis, the number of affected taxpayers is rising rapidly-by roughly 300,000 per week.

Concerns Over Altered Notices and Lack of Clarity

During a recent Ways and Means Committee hearing with IRS CEO Frank Bisignano, Sewell and Davis requested a copy of the notice being sent to taxpayers. Instead, they say they received an altered version that differed from both the actual notice and a version obtained from the Treasury Inspector General for Tax Administration (TIGTA). The reason for the discrepancies remains unclear.

In their letter, the lawmakers wrote:

"During a recent hearing, we requested a copy of the notice, state-by-state data on the notices sent, and an answer as to when the processing clock begins to run for taxpayers who respond to the notice. However, we only received an altered version of the notice cleared by the Department of the Treasury. The altered version is different from both the actual version sent to taxpayers and the version we obtained from TIGTA. We are troubled by the differences.

They also raised concerns that taxpayers are not being adequately warned about the length of the delays. According to Sewell and Davis, individuals who respond to the notice may still face a 10‑week wait for a paper refund-information that is not clearly stated. A paper check could take an additional six weeks beyond the 30‑day response window.

Limited Options for Taxpayers Without Online Accounts

The lawmakers highlighted another major issue: taxpayers who do not have an IRS online account have no clear way to request a timely paper check. The phone number listed on the notice does not connect callers to a live representative; instead, it directs them to set up an online account.

Sewell and Davis argue that this gives taxpayers a misleading impression that phone assistance is available.

Discrepancies Between Notices Raise Oversight Questions

The letter outlines several differences between the notice sent to taxpayers and the altered version provided by Treasury. While the details of those discrepancies were not included in the public summary, the lawmakers say the inconsistencies raise serious concerns about transparency and oversight.

Treasury has until April 6, 2026, to provide the requested information.

Background: Executive Order on Electronic Refunds

The surge in delayed refunds stems from Executive Order 14247, signed in March 2025, which mandates electronic payment of tax refunds. The policy aims to modernize refund delivery but has created challenges for millions of taxpayers who either cannot or prefer not to provide banking information.

According to the National Taxpayer Advocate, more than 10 million taxpayers received paper refunds last year. Many are unbanked, have disabilities, or face geographic or systemic barriers that make electronic deposits difficult.

As a result, more than 1.4 million taxpayers this year have received notices informing them that their refunds are being held until they provide direct deposit information-delays that in some cases exceed two months.