IRS is still behind on issuing tax refunds. This includes direct-deposit refunds and paper checks owed to people who filed returns after IRS shut its offices because of the coronavirus pandemic. IRS statistics bear this out. As of July 17, 2020 the Service processed 6.8% fewer direct-deposit refunds and 5.1% fewer total refunds, compared with the same time last year. Refunds on paper returns take the longest.