9 January 2026
1 min read

IRS sets Jan. 26 opening for 2026 tax season as refunds and new rules collide

IRS sets Jan. 26 opening for 2026 tax season as refunds and new rules collide

WASHINGTON, Jan 9, 2026, 11:43 EST

The Internal Revenue Service said it will begin accepting and processing 2025 tax returns on Jan. 26, opening the 2026 filing season, with an April 15 deadline to avoid penalties and interest. The agency expects to receive about 164 million individual income tax returns this year. (WTOP News)

For many households, the calendar is really about refunds. Last year’s average refund was almost $3,200, based on IRS data, and Piper Sandler said the typical check could rise by about $1,000 this season. The IRS says people who file electronically, known as e-filing, often receive refunds in less than 21 days if there are no issues with the return. (CBS News)

The season will be the first in which returns reflect several tax changes from the Republicans’ “big, beautiful bill” act signed into law last July, some of them retroactive to the 2025 tax year. IRS Chief Executive Officer Frank Bisignano said “IRS information systems have been updated to incorporate the new tax laws.” Taxpayers who need more time can request an automatic six-month extension, but any tax due must still be paid by April 15; those in federally declared disaster areas may get different deadlines. (WAPT)

Staffing is the wild card. The IRS has lost tens of thousands of tax collection workers through layoffs and buyouts pushed by Elon Musk’s Department of Government Efficiency, and the agency’s independent watchdog has warned service could suffer. “With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season,” National Taxpayer Advocate Erin M. Collins said. (AP News)

The IRS said its Free File program will start accepting returns on Friday, Jan. 9 for taxpayers with adjusted gross income of $84,000 or less, and its Free File Fillable Forms will open Jan. 26 for all incomes. A new Schedule 1-A will be used to claim recently enacted deductions tied to tips, overtime and car loan interest, among others. Acting IRS Commissioner Scott Bessent said the agency had been updating forms and processes and added: “I am confident in our ability to deliver results and drive growth for businesses and consumers alike.” (Fox Business)

In a separate filing-season release, the IRS urged taxpayers to use direct deposit and said it is phasing out paper refund checks, encouraging those without bank accounts to open one. It also flagged Form 1099-K, used to report payments from cards, payment apps and online marketplaces, and Form 1099-DA, used to report digital-asset proceeds from broker transactions. The agency told filers to monitor their IRS online account and to watch for tax scams and identity theft. (Irs)

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