The IRS will begin accepting and processing 2025 tax returns on January 26, 2026, marking the official start of the 2026 filing season. However, significant changes await taxpayers this year, including reduced IRS staffing and new tax provisions that could impact your refund.
With the April 15 filing deadline fast approaching, understanding these changes now can help you maximize deductions and avoid costly delays.
When Does the 2026 Tax Filing Season Start?
The IRS announced January 26, 2026, as the official opening date for tax filing. This aligns with recent years—January 27, 2025, and January 29, 2024.
The agency expects to process approximately 164 million individual tax returns this season, similar to the 163.6 million received through October 17, 2025. Most taxpayers will file electronically and receive refunds via direct deposit.
What New Tax Provisions Take Effect in 2026?
The One Big Beautiful Bill Act (H.R. 1, P.L. 119-21) introduces several tax changes affecting individuals and businesses. The IRS has updated its systems to accommodate these provisions.
New Schedule 1-A allows taxpayers to claim:
- Deductions for tips received
- Deductions for overtime pay
- Car loan interest deductions for qualifying vehicles
- A new deduction specifically for seniors
Trump Accounts are now available—a new type of individual retirement account designed for children. Enrollment forms are accessible through the IRS.
Why Will IRS Processing Be Slower This Year?
The IRS is operating with approximately 25% fewer employees than last year. A Treasury Inspector General for Tax Administration (TIGTA) report revealed that 25,386 IRS workers departed through May 2025 via incentive programs.
This workforce reduction means taxpayers should expect longer processing times for returns, refunds, and correspondence. Filing early and accurately becomes even more critical this year.
Are Paper Tax Refunds Still Available?
No. The IRS is phasing out paper refund checks following an executive order. Taxpayers must now provide bank account information to receive refunds via direct deposit.
If you don’t currently have a bank account, establishing one before filing is essential to receive your refund. The IRS “Where’s My Refund?” tool allows you to track refund status online.
What Are the Key Tax Deadlines for 2026?
April 15, 2026, remains the deadline to file individual tax returns and pay any taxes owed. Taxpayers who need additional time can request an extension until October 15, 2026—though this extends the filing deadline only, not the payment deadline.
Filing electronically and choosing direct deposit remains the fastest way to receive your refund, especially given the reduced IRS workforce.
How Should Atlanta Businesses Prepare for Tax Season?
Business owners face additional complexity with the new tax provisions. Understanding which deductions apply to your employees (tips, overtime) and whether your company vehicles qualify for the car loan interest deduction requires expert analysis.
The new Schedule 1-A must be completed correctly to claim these benefits. Errors could trigger audits or delay processing during an already-strained IRS filing season.
How Virtue CPAs Can Help
The combination of new tax provisions and reduced IRS capacity makes professional tax preparation more valuable than ever. Virtue CPAs helps Atlanta-area individuals and businesses navigate these changes efficiently.
Our tax planning services include:
- Analysis of One Big Beautiful Bill Act provisions specific to your situation
- Proper completion of new Schedule 1-A forms
- Maximizing deductions for tips, overtime, and senior benefits
- Trump Account setup and planning for your children
- Early filing strategies to avoid IRS processing delays
- Direct deposit setup and refund tracking assistance
Don’t let new tax provisions or IRS delays cost you money. Our team stays current on every regulatory change to ensure you receive every deduction you deserve.
Contact Virtue CPAs today at (678) 952-9001 or info@virtuecpas.com to schedule your 2026 tax planning consultation. Our Alpharetta office serves clients throughout the Atlanta metropolitan area.
