IRS report highlights smoother 2026 tax filing season amid modernization push

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IRS 2026 tax season update

Highlights

The IRS processes about 139 million Forms 1040 in the 2026 filing season, with 98% electronically filed and 65% resulting in refunds.
IRS technology modernization drives efficiency, with Individual Online Accounts logging nearly 121 million sessions and Where's My Refund? usage rising 9% year-over-year to 346 million.
Despite improved automation, taxpayers needing direct assistance—such as identity theft victims and those without digital access—continue facing significant delays and resolution challenges.

Report findings and filing season performance

As reported by the Internal Revenue Service, National Taxpayer Advocate Erin M. Collins releases her Fiscal Year 2027 Objectives Report to Congress on June 24, saying the agency performs better than expected in most respects during the 2026 filing season despite significant operational pressures. Collins says the IRS successfully manages sweeping new tax legislation, staffing cuts and leadership turnover, while many taxpayers file returns and receive refunds without significant delay.

The report says the IRS processes about 139 million Forms 1040 by the end of the filing season, with about 98% submitted electronically. Roughly 65% of those returns result in refunds, and about 98% of refunds are delivered by direct deposit, supporting broad use of automated processing across the system.

Collins also says taxpayers needing direct assistance still face difficulties. The report identifies delays tied to returns suspended for additional review, slower delivery of paper refund checks and long case resolution times for identity theft victims.

Digital tools and remaining service challenges

The report credits the IRS's continuing technology modernization as a main reason for the filing season's performance. Individual Online Accounts record nearly 121 million logins during the period, and the IRS expands functions that let taxpayers upload documents for certain notices, receive refund status notifications, update direct deposit information in some cases and access more account data.

Taxpayers also access information returns through their online accounts more than 3.7 million times to help prepare accurate filings. The IRS's Where's My Refund? tool is used about 346 million times during the filing season, a 9% increase from the prior year, showing continued reliance on self-service channels.

Even so, the report says taxpayers outside standard processing channels are often the ones most in need of support. Collins says those groups can include elderly taxpayers, people with disabilities, limited-English proficient filers, unbanked households and people without reliable internet access.

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