What You Need To Know
As the 2026 tax filing season begins, several developments in IRS operations and tax policy are shaping how returns will be processed and how taxpayers might experience the season. These changes may be particularly meaningful for working-income households, ITIN filers, and small business owners.
The IRS processed 161 million individual tax returns in 2025, with the vast majority filed electronically. During that year, about 94 % of taxpayers e-filed, and the average refund was approximately $3,167.
IRS staffing levels have changed substantially. Heading into the 2026 filing season, the agency’s workforce was reduced by roughly 27 %, meaning fewer employees are available to assist with processing, correspondence, and phone support.
The 2026 filing season covers tax year 2025 returns and began in late January, with most refunds for electronically filed returns typically issued within 21 days of acceptance when direct deposit is selected. Older methods, such as paper filings or returns requiring additional review, can take six weeks or longer.
The IRS has also phased out most paper refund checks, increasing reliance on direct deposit for timely refunds.
What This Means for Average-Income Workers
For many taxpayers receiving W-2 wages, the filing experience should be largely smooth if returns are accurate and filed electronically with direct deposit information. However, returns that have errors, missing information, or require review may face longer processing times than in prior years.
Considerations for ITIN Filers
For taxpayers who use an Individual Taxpayer Identification Number (ITIN), returns are more likely to be reviewed manually, particularly when refundable credits are claimed. Because such reviews take additional IRS resources, processing can be slower if required documentation is incomplete or inconsistent.
Small Business and Self-Employed Filers
Returns reporting business income, deductions, or Schedule C activity involve additional complexity. Even when filed electronically, these returns can require extra time to process when supporting records are not clear or complete.
Refund Timing and What Taxpayers Should Know
While the IRS aims to issue most refunds within about three weeks for e-filed returns with direct deposit, some refunds (such as the Earned Income Tax Credit and the Additional Child Tax Credit) may not be released until early March, according to IRS timing guidance.Millions of Americans rely on their tax refunds each year. A recent survey showed that roughly 75 % of U.S. households plan to file a return and that 42 % of those taxpayers are counting on their refund for bills or other needs.
Why Preparation Matters This Year
Because the IRS has fewer staff and more complex tax law changes to implement, ensuring that your tax return is accurate and complete is more important than ever. Filing early and choosing electronic filing with direct deposit can help reduce delays and increase the likelihood of timely refunds. Errors, incomplete forms, or missing schedules can trigger manual review and slow down processing.
Working with a knowledgeable tax preparer can help you avoid common mistakes and ensure that your filing reflects all eligible credits and deductions.Proper preparation matters more than ever this tax season. Avoid delays, reduce errors, and protect your refund by working with an experienced tax professional who understands the needs of working families, ITIN filers, and small business owners.
Molimar Tax Consulting Service
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Hyattsville, Maryland
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