BY COMFORT OGBONNA
The Internal Revenue Service (IRS) officially opened the 2026 tax filing season on January 26, announcing its expectations to receive around 164 million individual tax returns for the tax year 2025. The agency highlighted that taxpayers have until the federal deadline of April 15 to submit their returns, and encouraged them to utilize the various online tools and resources available on IRS.gov to assist in the process.
The IRS has introduced numerous digital resources, designed to support taxpayers before, during, and after filing their returns. These tools aim to simplify the process and ensure that individuals can easily meet their filing and payment obligations. The recent passage of the One Big Beautiful Bill Act, signed into law by President Donald Trump in July, is also expected to provide significant relief for taxpayers, offering provisions that may reduce tax liabilities and potentially increase refunds.
In a statement, IRS Chief Executive Officer Frank Bisignano reassured taxpayers that the agency is fully prepared for the 2026 filing season. “The IRS workforce remains vigilant and dedicated to serving the American public, with updates to our information systems to accommodate the new tax laws,” he said.
The White House, on the same day, issued a statement predicting that the 2026 filing season will be historic for taxpayers. According to their projections, average tax refunds are expected to rise significantly, with the possibility of refunds exceeding $1,000 compared to previous years. This increase is attributed to key provisions in the One Big Beautiful Bill Act, including tax exemptions for tips and overtime pay up to certain income thresholds, an additional deduction for seniors, and a deduction for auto loan interest payments.
An analysis conducted by the Tax Foundation predicts that tax refunds in 2026 will average $3,800 per taxpayer. This marks a considerable increase from the 2024 average of $3,052 and the 2023 figure of $3,004.
The IRS has also announced that most refunds will be issued within 21 days of submission. However, some returns requiring additional review may take longer. For those expecting quicker processing, the agency emphasizes that direct deposit is the fastest way to receive a refund. The IRS began phasing out paper refund checks starting September 30, in line with an executive order issued by President Trump earlier in the year. The order aimed to modernize the payment system, reduce unnecessary costs, and eliminate the risks associated with paper-based payments, such as fraud and lost payments.
For those who prefer paper checks, they will still be available in certain cases, such as for individuals without access to banking services or in emergency situations where electronic payments could cause undue hardship. Taxpayers are encouraged to provide their bank account and routing numbers when filing to ensure that refunds are deposited electronically.
Refunds for Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) recipients are expected to begin reflecting in bank accounts or debit cards by March 2, assuming there are no issues with processing. Taxpayers can track their refund status using the IRS Individual Online Account, the IRS2Go app, or the “Where’s My Refund?” tool. The latter tool is expected to provide projected deposit dates for early filers by February 21.
In the context of the United States’ 250th anniversary, Bisignano expressed pride in the agency’s role, stating, “The IRS is excited to serve American taxpayers during this important filing season. We encourage everyone to e-file rather than submit paper returns to expedite the process.”
Despite the positive outlook, a report from the Treasury Inspector General for Tax Administration, released on September 29, raised concerns about the IRS’s capacity to manage the 2026 filing season. The audit indicated that the agency had faced workforce reductions, losing 17 to 19 percent of key staff responsible for processing returns and providing customer service. Additionally, the IRS’s Information Technology division had also experienced staffing cuts, which could impact the speed and efficiency of operations during the filing season.
Nevertheless, Acting IRS Commissioner Scott Bessent responded in the agency’s January 8 statement, assuring the public that the IRS was fully prepared for the challenges of the 2026 season. He noted that, even before the One Big Beautiful Bill Act, the IRS and Treasury had been diligently working to update forms and processes to benefit American taxpayers.
With the passage of the bill, which is expected to improve the tax filing experience for many, the IRS is optimistic that the 2026 tax season will be one of the most successful in recent years.
Original article
Comments