What Every Taxpayer Needs to Know About the 2026 Tax Season

by | Feb 10, 2026

ARTICLE | February 10, 2026

If you typically file your taxes around the deadline or rely on the mail to submit payments, this year's filing season presents some new challenges worth your attention. Between IRS workforce reductions, updated postal service rules, and a push toward electronic payments, now is the time to adjust your approach and avoid unnecessary delays or penalties.

Here's what's changed and what you can do about it.

The IRS is Operating with Significantly Reduced Staff

The IRS workforce has dropped from over 102,000 employees in January 2025 to approximately 74,000 by year's end. This isn't just about numbers—many experienced employees with deep institutional knowledge have departed. Combined with leadership turnover and new tax law implementation requirements, the agency is facing serious capacity constraints.

What this means for you: Expect longer wait times for phone assistance, delayed responses to mailed correspondence, and potential refund delays, especially for paper returns or amended returns requiring manual processing.

Your action steps:

  • File electronically whenever possible to avoid processing backlogs
  • Submit your return early rather than waiting until the April deadline
  • If you need to contact the IRS, be prepared for extended hold times and consider using online tools first

Postmark Rules Have Changed—And It Could Affect Your Deadline

The U.S. Postal Service quietly updated its postmark definition in late December 2025. The official postmark date now reflects when mail undergoes its first automated processing at a USPS facility—not when you dropped it in the mailbox. This means a return or payment mailed on April 15 might receive an April 16 postmark if processing is delayed.

What this means for you: Under IRS rules, the postmark date determines whether a mailed filing is timely. A delayed postmark could result in late-filing penalties even if you mailed everything on time.

Your action steps:

  • Mail returns and payments at least 3-5 business days before the deadline and use certified mail with return receipt requested
  • Consider electronic filing and payment methods to eliminate postmark uncertainty entirely
  • Keep documentation of when you mailed important documents and share it with your tax preparer

The Federal Government is Moving to Electronic Payments

Executive Order 14247 is pushing federal agencies, including the IRS, toward electronic payment methods. While this transition is happening gradually, it affects both how you receive refunds and how you make payments to the IRS.

What this means for you: Paper checks for refunds will become less common, and eventually, electronic payments to the IRS will become the standard. For now, checks and money orders are still accepted, but transition is underway.

Your action steps:

  • Provide accurate direct deposit information when filing your return this year
  • Verify that your bank account details are current with the IRS
  • Explore IRS Direct Pay, EFTPS, or other electronic payment options for estimated taxes and balances due
  • Watch for official IRS letters (never phone calls or texts) requesting updated banking information

Processing Backlogs are Growing

The combination of reduced staffing and delayed hiring has created significant inventory backlogs. Paper returns awaiting processing jumped from 52,293 in December 2024 to 294,052 in December 2025—a 462% increase. Amended returns and taxpayer correspondence are also piling up.

What this means for you: If you file a paper return, submit an amended return, or need the IRS to respond to correspondence, expect substantial delays beyond normal processing times.

Your action steps:

  • File electronically with direct deposit to receive your refund as quickly as possible
  • Avoid filing amended returns unless absolutely necessary; if you must, file early and expect extended processing times
  • Monitor your IRS account online rather than calling or mailing inquiries
  • Plan your cash flow assuming refunds may take longer than previous years

Moving Forward Together

These changes don't have to derail your tax filing experience. With early preparation and a shift toward electronic methods, you can navigate this filing season smoothly. The key is acting now rather than waiting until the deadline approaches.

If you have questions about how these changes affect your specific situation, we're here to help you develop a strategy that protects your interests and ensures compliance.

 

Questions or Want to Talk?

Call us directly at 972.221.2500 (Flower Mound) or 940.591.9300 (Denton), or complete the form below and we’ll contact you to discuss your specific situation.
  • Should be Empty:
  • Topic Name:

Real Estate and Cost Segregation

Mar 24, 2026

Learn more about cost segregation studies and found out if performing one is a smart next step for your real estate portfolio.

Building a Family Limited Partnership That Lasts: What High-Net-Worth Families and Business Owners Need to Know

Mar 17, 2026

Most business owners think about succession planning far too late. A Family Limited Partnership, when established early and managed with discipline, gives founders something rare: the ability to transfer economic value to the next generation gradually, deliberately, and on their own terms — without giving up operational control in the process. It is one of the most effective wealth transfer and succession planning tools available. It is also one of the most scrutinized by the IRS. Before you build one, make sure you understand what it takes to make it last.

Manufacturers: A New Tax Break Could Let You Write Off Your Entire Facility on Day One

Mar 3, 2026

Congress just handed manufacturers one of the most significant tax incentives in decades. Under the new One Big Beautiful Bill Act, qualifying businesses can now deduct 100% of the cost of a new production building in the very first year it is placed in service — instead of spreading that deduction over 39 years. For a business investing $5 million, $10 million, or more in a new or expanded facility, that difference could be transformational. But the rules are strict, the election is irrevocable, and the clock is already ticking. Read on to find out if your facility qualifies and what you need to do before you file.

The State Tax Divide: What High-Tax State Residents Need to Know Now

Feb 17, 2026

Two decades ago, 21 states had top income tax rates between 5 and 7 percent. Today, only 12 do. Meanwhile, 26 states now have rates below 5 percent or no income tax at all, while six states have climbed to double-digit rates. With more low-tax alternatives than ever before, businesses and high-net-worth individuals in high-tax states need to consider their options now—before policy changes catch them off guard.

529 Plans Explained: How to Save Thousands on Education While Reducing Estate Taxes

Feb 3, 2026

529 plans offer more than just tax-free college savings. From funding K-12 tuition to repaying student loans and even reducing estate taxes, these versatile accounts provide powerful benefits that many families overlook. Learn how to maximize your education savings strategy with step-by-step guidance on setting up, funding, and managing 529 plans for your children or grandchildren.

Beyond the Balance Sheet: Building the Next Generation of Successful Wealth Stewards

Jan 27, 2026

The statistics are sobering: 70% of wealthy families lose their wealth by the second generation, and 90% have depleted it by the third. Yet despite these well-documented trends, most affluent families continue to focus primarily on tax optimization and asset protection while neglecting the most critical element of successful wealth transfer: preparing the next generation to be responsible stewards of family assets.