As we close out 2025 and prepare for the 2026 tax filing season, the Internal Revenue Service (IRS) has announced and implemented several important updates that taxpayers should understand before filing their tax returns.
Some of these changes are administrative, while others involve new tax provisions that could affect refunds, filing requirements, tax credits, and how quickly returns are processed. Although not every update applies to every taxpayer, staying informed can help you avoid delays, prevent mistakes, and maximize the benefits available to you.
Below is a summary of several important IRS updates heading into the 2026 filing season.
IRS Continues Moving Away From Paper Refund Checks
The federal government continues encouraging taxpayers to receive tax refunds through direct deposit instead of paper checks.
Direct deposit remains the fastest, safest, and most reliable method for receiving a federal tax refund. Taxpayers who request paper checks may experience longer delivery times, mail delays, or, in some cases, lost or stolen refund checks.
The IRS recommends verifying your banking information before submitting your tax return. Even a small error in an account or routing number could delay your refund.
What you should do
- Verify your routing and account numbers.
- Update any bank account changes before filing.
- Choose direct deposit whenever possible.
Learn more: https://www.irs.gov/refunds
IRS Processing Times May Still Vary
Although the IRS has made significant improvements in processing returns compared to previous filing seasons, certain returns may still require additional review.
Returns commonly delayed include:
- Paper-filed tax returns
- Returns containing missing or incorrect information
- Identity verification cases
- Returns claiming certain refundable tax credits
- Returns requiring manual IRS review
Electronic filing continues to be the quickest way to process a return and receive a refund.
What you should do
- File electronically.
- Review your return carefully before submitting it.
- Respond promptly if the IRS requests additional information.
Learn more: https://www.irs.gov/newsroom
IRS Continues Expanding Automated Compliance Reviews
The IRS continues using automated systems to compare information reported by taxpayers with information received from employers, financial institutions, and other third parties.
Common items reviewed include:
- W-2 wage information
- Forms 1099
- Retirement distributions
- Investment income
- Tax credits claimed
- Estimated tax payments
Receiving an IRS notice does not automatically mean you are being audited. In many cases, it simply means the IRS identified information that needs clarification or correction.
What you should do
- Keep copies of all tax documents.
- Report all taxable income.
- Avoid estimating amounts without documentation.
Learn more: https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter
Several Tax Law Changes Begin Affecting 2026 Filers
Congress has enacted several tax provisions that begin taking effect during the 2026 filing season.
Depending on your situation, these changes may affect areas such as:
- Individual deductions
- Retirement planning
- Health-related tax provisions
- Certain reporting requirements
- Various taxpayer credits and benefits
Because IRS guidance continues to be released as implementation progresses, some taxpayers may benefit from reviewing their tax strategy before filing.
If your income, family size, employment status, or financial situation changed during 2025, these new rules could affect your return.
Identity Theft Prevention Remains a Top IRS Priority
Tax-related identity theft continues to affect thousands of taxpayers each year.
Filing early can significantly reduce the chance that someone else files a fraudulent tax return using your Social Security number before you do.
The IRS also continues promoting the use of an Identity Protection PIN (IP PIN) for taxpayers who want additional protection against tax-related identity theft.
What you should do
- File your return as early as possible.
- Protect your Social Security number.
- Consider requesting an IRS Identity Protection PIN if appropriate.
Learn more: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin
Electronic Filing Remains the Fastest Option
The IRS continues recommending electronic filing combined with direct deposit as the fastest and most accurate way to file a federal tax return.
Electronic filing reduces common errors, speeds up IRS processing, and helps taxpayers receive refunds sooner.
Taxpayers filing paper returns should continue to expect longer processing times.
Filing Early Is More Important Than Ever
Every filing season, taxpayers who file early generally experience fewer complications.
Early filing offers several benefits:
- Faster refund processing
- Reduced risk of identity theft
- More time to resolve IRS questions
- Less stress during tax season
Waiting until the filing deadline often means longer processing times and fewer appointment options with tax professionals.
Final Thoughts
The 2026 tax filing season brings several important IRS updates that taxpayers should understand before preparing their returns.
While many taxpayers will experience a routine filing season, others could be affected by processing delays, new tax law provisions, additional IRS verification procedures, or changes to certain tax benefits.
Reviewing your tax documents early, filing electronically, choosing direct deposit, and ensuring your information is accurate remain some of the best ways to avoid unnecessary delays.
If you have questions about how these IRS updates may affect your personal or business tax situation, consulting with a qualified tax professional before filing can help ensure your return is complete, accurate, and filed on time.
