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2026 Tax Filing Season Officially Opens

Published January 30, 2026

The Internal Revenue Service (IRS) officially opened the 2026 tax filing season on January 26, beginning the acceptance and processing of federal individual income tax returns for the 2025 tax year. The IRS expects approximately 164 million returns to be filed before the April 15, 2026 deadline.

"As America celebrates its 250th anniversary, the IRS and its employees are excited to once again serve American taxpayers in meeting their tax filing obligations during the 2026 filing season," said IRS CEO, Frank J. Bisignano. "Not only does 2026 commemorate the 250th anniversary of the signing of the Declaration of Independence, but it also coincides with the 40th anniversary of electronic filing."

The IRS highlighted several no-cost or low-cost filing resources. IRS Free File is available for eligible individuals using third party tax preparation software. For taxpayers who may be comfortable preparing their own returns, form instructions and Free File Fillable Forms are available. If choosing a tax professional, the IRS cautioned taxpayers to choose preparers carefully and ensure that a reputable and accredited practitioner is engaged.

The IRS encouraged taxpayers to electronically file to speed up processing. Most taxpayers must now provide routing and account numbers to receive refunds. Under Executive Order 14247, the IRS began phasing out paper checks on September 30, 2025.

Refunds will generally be issued within 21 days for electronically filed returns with direct deposit. If the returns include the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), it may require additional review and extended processing times. The IRS encourages use of online tools to check refund status, including the Where’s My Refund? webpage, the IRS2Go mobile app and IRS Individual Online Accounts.

The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax assistance to qualified filers. The IRS announced it awarded grants to 315 VITA and 48 TCE applicants totaling $53 million to assist with no-cost federal tax return preparation to eligible individuals. Recipients of the grants include nonprofit agencies, faith-based organizations and community centers. The IRS provides support through tax law training, certification and ongoing oversight. VITA and TCE programs operate with the goal of preparing accurate and reliable tax returns for the individuals they serve.

The Taxpayer Advocate Annual Report Released  

The Internal Revenue Service (IRS) National Taxpayer Advocate released its 2025 Annual Report to Congress. The report assesses taxpayer experiences with the IRS. The report highlighted that the 2025 tax season was generally smooth for taxpayers, however, the 2026 tax filing season is likely to hold challenges for taxpayers.

For the 2025 tax filing season, the report highlighted that the IRS delivered timely refunds and predictable service to taxpayers. The IRS processed over 165 million returns, with 94% being filed electronically. Approximately 63% of taxpayers received a refund, averaging $3,167, with timely issuance of refunds. However, approximately 3.6 million taxpayers faced delayed refunds, which averaged seven weeks for e-filers and 14 weeks for paper filers. Hundreds of thousands of identity theft victims waited more than 21 months for case resolution and a refund to be issued.

“Among the reasons the 2025 filing season went well was that the IRS had its largest workforce in many years and faced no major tax law changes that required implementation during the filing season,” wrote National Taxpayer Advocate, Erin M. Collins. “Entering 2026, the landscape is markedly different. The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes mandated by the [One, Big, Beautiful Bill (OBBBA)] Act, many of which apply retroactively and require significant IRS programming, guidance, changes to tax forms and instructions, and taxpayer education.”

A major theme of the report is the likely impact of drastic workforce reductions. The IRS lost approximately 27% of its employees during 2025. In addition to the workforce reductions, the OBBBA introduced extensive changes to the tax law, many of which were retroactive and complex. The IRS plans to outsource paper return processing to contractors to reduce the processing times for paper returns but the National Taxpayer Advocate raised concerns related to operational issues and confidentiality risks.

The National Taxpayer Advocate also released its “Purple Book.” The Purple Book contains a compilation of “common-sense” legislative recommendations with the goal of improving tax administration and strengthening taxpayer rights.  

Tax Professionals Prepare for Filing Season

The Internal Revenue Service (IRS) is urging tax professionals to prepare now for the upcoming 2026 filing season. The IRS reminded tax professionals of the IRS digital tools that can help streamline tax preparation and improve service to clients.

As the IRS opens the 2026 filing season, tax professionals are encouraged to establish and use an IRS Tax Pro Account, a secure online portal that allows practitioners to view authorized client tax information and electronically manage many client needs. When a tax professional and their client have their respective online accounts, the authorization process for actions such as power of attorney and tax information authorizations can be completed entirely online. This can significantly reduce processing times because it eliminates the need to exchange paper copies for signatures.

The taxpayer client can log into their IRS Individual Online Account, review the authorization request, check a box, and submit the form. In many cases, authorization appears almost immediately in the IRS’s Centralized Authorization File, in some cases the request may take up to 48 hours to process.

The IRS highlighted the Individual Online Account which gives taxpayers direct access to their own federal tax records, including adjusted gross income, transcripts, payment history, refund status, identity protection PINs, and available forms such as W-2s and certain 1099s. The online account also allows the taxpayer to securely receive communications from their tax professional. Tax professionals are also encouraged to share IRS online tools and preparatory guidance with clients. These tips can help ensure a smoother filing season for both preparers and taxpayers.

Applicable Federal Rate of 4.6% for February: Rev. Rul. 2026-3; 2026-6 IRB 1 (15 January 2026)

The IRS has announced the Applicable Federal Rate (AFR) for February of 2026. The AFR under Sec. 7520 for the month of February is 4.6%. The rates for January of 4.6% or December of 4.6% also may be used. The highest AFR is beneficial for charitable deductions of remainder interests. The lowest AFR is best for lead trusts and life estate reserved agreements. With a gift annuity, if the annuitant desires greater tax-free payments the lowest AFR is preferable. During 2026, pooled income funds in existence less than three tax years must use a 4.0% deemed rate of return. Charitable gift receipts should state, “No goods or services were provided in exchange for this gift and the nonprofit has exclusive legal control over the gift property.”