If you’re a taxpayer in North Carolina, you’re likely aware that the North Carolina Department of Revenue (NCDOR) is sending out millions of dollars in tax refunds. However, many refunds and notices have been delayed by weeks or months due to unexpected operational issues.
This article outlines what’s happening, why it’s happening, how it could affect you, and how to track your refund.
What Triggered the Refund Delays?
| Issue | What Happened | Impact |
|---|---|---|
| Print-and-Mail Vendor Ceased Operations | In May 2025, NCDOR’s contracted vendor — Professional Mail Services, Inc. (PMSI) — abruptly went out of business. | All paper refund checks and mailed notices were delayed. Direct deposit refunds were not impacted. |
| Volume of Affected Checks & Notices | Approximately 300,000 individual income/business refund checks and 450,000 notices were affected. | Taxpayers waiting for paper checks or mailed notices saw delays. |
Key Dates & Current Status
- May 14, 2025: NCDOR formally confirmed that PMSI ceased operations and that printing and mailing of checks/notices had been interrupted.
- May 23-28, 2025: NCDOR mailed about 100,000 refund checks that were printed earlier but not yet mailed. Notices that were unprinted or unread remain a concern.
- August 29, 2025: The department declared that all impacted refund checks and notices have been mailed, and normal operations resumed.
Who’s Affected & Who’s Not
- Affected: Taxpayers who filed paper returns or requested paper refund checks; those expecting notices by mail.
- Not affected: Taxpayers who filed electronically and selected direct deposit for their refund. These refunds were issued without delay.
What NCDOR is Doing to Address This
- Contracted a new print and mail vendor to resume operations.
- Maintained and updated a public webpage titled “Status of Mailing Delays” to give taxpayers current information.
- Encouraged taxpayers to use the Where’s My Refund? online tool to check current refund status.
Delay Implications & Common Causes
Besides the vendor issue, other reasons for delays include:
- Adjustments / math errors on returns.
- Missing or incorrect information (signatures, bank info, W-2s/1099s).
- Identity verification or fraud protection steps.
- Debts owed to state, local, or federal agencies may lead to refund offsets. If you owe $50 or more and a creditor files a claim, some or all of your refund may be withheld.
How to Check Your Refund & What to Do
- Use the Where’s My Refund? web tool via NCDOR’s website. You’ll need your Social Security Number or Federal ID and the refund amount listed on line 34 of Form D-400.
- If you filed a paper return and haven’t received your refund after more than 12 weeks, call NCDOR or mail a duplicate return marked “Duplicate.”
- If the refund check was lost, destroyed, undeliverable, or expired (older than six months), NCDOR provides procedures to request a reissued check.
Table: Summary of Delay Details
| Aspect | Details |
|---|---|
| Vendor issue | PMSI ceased operations unexpectedly (May 2025) |
| Number of impacted refund checks | ~300,000 individual & business checks |
| Number of impacted notices | ~450,000 mailed notices delayed |
| Checks already resent (as of May) | ~100,000 checks mailed that were ready but delayed due to vendor issue |
| When normal operations resumed | By late August 2025, all impacted checks and notices mailed |
| Direct deposit filing | Not affected and proceeded normally |
Why Some Refunds Might Be Delayed Even After Mailing Resumed
Even though printer issues have been addressed, delays may still occur due to:
- Error corrections or audits.
- Required identity checks.
- Refund offsets because of owed debts.
- Postal delivery times, especially for remote or rural areas.
In short, millions of dollars in refunds have indeed been processed by the NCDOR, but many taxpayers experienced significant delays—especially those relying on paper checks or mailed notices—due to the sudden loss of the print & mail vendor.
As of late August 2025, the backlog appears largely cleared, with refund checks and notices mailed. To avoid future delays, filing electronically with direct deposit is far faster and more reliable.
If you’re still waiting, use the official tracking tools, update your address if needed, and check whether any outstanding debt or missing information may be delaying your refund.
FAQs
When will I get my refund if I filed a paper return and requested a paper check?
Paper return refunds were delayed due to the vendor shutdown. Many have been mailed now (since late May through August 2025), but if you haven’t received it after 12 weeks, contact NCDOR for a duplicate check.
Can my refund be withheld or reduced?
Yes. If you owe $50 or more to a state, local, or federal agency, that debt can be offset against your refund. Also, missing or incorrect information on your return or required identity verification may cause delays or adjustments.
What’s the fastest way to get my refund without delays?
Filing electronically combined with choosing direct deposit is the fastest. These methods were not affected by the vendor’s closure and avoids mailing delays.
