Tax Filing Season: Early Birds Can Start on Jan. 26, 2026
The 2026 tax filing season is set to begin on January 26, marking the official start of the IRS's acceptance and processing of 2025 tax returns. Taxpayers should be aware that the deadline to file and avoid penalties and interest is April 15, 2026.
This annual process involves taxpayers preparing and submitting their income tax returns for the previous calendar year to the IRS. Most U.S. citizens and permanent residents are required to file a tax return if their earnings exceed a certain threshold for the year.
However, there's a catch. Tax experts, including the IRS's independent watchdog, have raised concerns about potential disruptions. The agency has experienced a significant loss of tax collection workers due to planned layoffs and buyouts, which were reportedly spurred by Elon Musk's Department of Government Efficiency initiatives.
Despite these challenges, IRS CEO Frank Bisignano remains optimistic. He assures that the IRS workforce is dedicated to serving the American taxpaying public and that their information systems have been updated to handle new tax laws efficiently.
Bisignano, who also serves as the commissioner of the Social Security Administration, highlights the IRS's responsibility in implementing major provisions of the Republicans' tax and spending package, which was signed into law last summer. Several provisions in this law retroactively affect the 2025 tax year, potentially leading to more taxpayer inquiries and requiring the IRS to update tax forms.
The IRS anticipates receiving approximately 164 million individual income tax returns this year, a number similar to the previous year. The average refund amount was $3,167, according to IRS data, and it's expected that the effects of the Republican tax law will result in larger refunds in 2026.
However, the IRS workforce has faced a significant reduction, falling from 102,113 workers at the end of the Biden administration to 75,702, as stated in the National Taxpayer Advocate report to Congress in June. This report also warns of potential challenges in the 2026 tax season, with the IRS workforce reduced by 26% and significant tax law changes on the horizon.
Taxpayers should be prepared for a potentially challenging filing season, and the IRS is urging them to stay informed and seek assistance if needed.
