Refund Delay Alert: Why President’s Day Could Stall Your PATH Act Deposit

If you are claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), you are likely watching the calendar for February 15.

This is the date the statutory mid-February hold period ends. The IRS is legally allowed to begin releasing funds held under the PATH Act. However, in 2026, the calendar has created a “processing gap” that may delay access to your cash by several days.

The issue is not the IRS. It is the banking system.

The “Calendar Collision” of 2026

For your refund to hit your bank account, it must pass through the Automated Clearing House (ACH), which is governed by the Federal Reserve.

This year, three events are colliding in a way that pauses standard ACH settlement timing:

• Sunday, Feb 15: The statutory hold period expires. The IRS typically begins updating PATH-held accounts once the hold period ends. However, banks do not process files on Sundays.
• Monday, Feb 16: President’s Day (Federal Holiday). The Federal Reserve is closed. No standard ACH transfers move between the Treasury and commercial banks.
• Tuesday, Feb 17: The banking system reopens, and the backlog of weekend files begins to settle.

How Refund Batches Move From IRS to Your Bank

To understand the delay, you have to look under the hood of the federal payment rail. A “Refund Date” on your transcript does not mean the money is instantly wired to you. It is a multi-step relay race.

First, the IRS Master File (IMF) generates a refund authorization. This usually happens in massive weekly batches, often overnight on Fridays or Saturdays during tax season.

Second, the IRS transmits this file to the Bureau of the Fiscal Service (BFS). This is the agency that actually cuts the check or issues the electronic deposit.

Third, the BFS sends an ACH file to the Federal Reserve, which acts as the clearinghouse. The Fed then routes that money to your specific bank (Chase, Chime, Wells Fargo, etc.).

Here is the bottleneck: The Federal Reserve does not settle ACH files on weekends or federal holidays. Even if the IRS “releases” your money on Sunday, Feb 15, the BFS cannot settle that transaction with your bank until the Fed reopens on Tuesday morning.

Who Is Affected (And Who Isn’t)

Not every taxpayer will see a delay. This “blackout” period specifically impacts those caught in the PATH Act transition window.

You ARE affected if:

• You claimed the EITC or ACTC.
• Your transcript shows a “processing date” of mid-February.
• You are banking on an “early deposit” app that usually pays 2 days early (because the holiday eats those 2 days).

You are NOT affected if:

• You filed a simple return without these specific credits (your refund likely processed in late January).
• You elected to receive a paper check. (Paper checks follow a completely different timeline and are mailed from the Treasury separately).
• Your refund was already intercepted for other debts. If you have defaulted on federal student loans, this delay might be irrelevant because the Treasury may have already seized the funds.

Why “Early Deposit” Apps May Stall

Many fintech apps (like Chime, CashApp, or Varo) advertise “getting paid up to 2 days early.” This works because they credit your account the moment they receive the notification of a pending deposit, rather than waiting for the funds to actually settle.

However, the Federal Holiday interrupts this notification chain. If the IRS does not transmit the refund batch file before the close of business on Friday, Feb 13, the notification often cannot be sent until the Federal Reserve reopens on Tuesday morning.

This means the “2-day early” benefit essentially gets absorbed by the 3-day holiday weekend.

The “Disappearing Bar” Phenomenon

Starting this weekend, you may notice the status bar on the “Where’s My Refund” (WMR) tool disappear completely. You might see a generic message: “Your return is still being processed. A refund date will be provided when available.”

Do not panic. In previous tax seasons, this visual glitch frequently occurred during the transition from “PATH Act Hold” to “Refund Approved.”

It often indicates that the system is updating your Tax Transcript in the background. It does not automatically indicate an audit or error.

When To Actually Worry: Normal vs. Abnormal Delays

It is crucial to distinguish between a standard holiday delay and a red flag on your account.

Normal Delay:

If your WMR bars disappear but your Transcript is blank or shows “No Return Filed” for 2025, you are likely just stuck in the backlog. Allow several business days before contacting the IRS.

Abnormal Delay (Red Flags):

If you see Tax Topic 151 or Topic 203 on your WMR dashboard, the delay is not because of President’s Day. It means your refund is being adjusted or taken entirely. You need to understand the difference between IRS Topic 203 vs. Topic 151 immediately to know if you have any recourse.

Another red flag is Letter 5071C. If your return is flagged for identity verification, no amount of waiting will fix it. You must find that letter and verify online.

Ignore WMR, Check Your Transcript

Because of the holiday lag, the WMR tool may not update until Wednesday or Thursday. For the most accurate status, savvy filers check their Account Transcript directly.

You are looking for Code 846 (Refund Issued). The date listed next to this code is your official “Refund Date.”

Note that if your 846 date falls on the holiday (Feb 16), most traditional banks will post the funds on the next business day (Tuesday, Feb 17).

If you were relying on this refund to pay down private debt, be aware that unexpected delays can disrupt your payment history. This is especially critical if you are working toward releasing a cosigner, where even one late payment can reset your progress.

Processing timelines can vary by bank, ACH batch timing, and individual account history.