2026 tax season stumbles with fewer filings and delayed IRS refunds
The 2026 tax filing season has begun with fewer returns processed and delays in refunds. Early data from the IRS shows a 5.2% drop in individual income tax returns received compared to last year. Some taxpayers are also facing holdups due to missing forms and refund restrictions on certain credits.
In the first week of this year's filing season, the IRS processed 12.3% fewer individual income tax returns than in the same period of 2025. The agency has yet to release all necessary forms, which may be slowing submissions. Early filers, who often have simpler returns, are experiencing issues—raising concerns about potential complications later in the season.
Nearly all returns submitted so far—99%—have been e-filed, with 64% self-prepared and 36% handled by tax professionals. E-filing remains the preferred method, costing the IRS just $0.23 per return compared to $10.14 for paper filings. It is also faster and more secure.
Refunds tied to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) are being held until mid-February, affecting those who filed early. The average refund this year is $2,290, up 10.9% from 2025, though fewer refunds have been issued overall. Meanwhile, visits to IRS.gov have surged by 35.2%, likely due to taxpayers checking refund statuses.
The IRS Direct File program, a free government-run filing option, was discontinued in 2026 following opposition from Republican lawmakers and commercial tax preparation companies.
The slower start to the tax season reflects both missing forms and processing delays. With refunds for key credits paused until mid-February, early filers face longer waits. The IRS continues to push e-filing as the most efficient option, but the drop in processed returns suggests challenges ahead.
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