Summary
The Internal Revenue Service (IRS) is changing its operations before the 2026 tax season starts, including leadership shifts and modernizing services. The agency is introducing new tax deductions and encouraging more digital interactions with taxpayers to improve customer service and compliance.
Key Facts
- The IRS announced leadership reorganization and plans to modernize its services to improve taxpayer service.
- New tax deductions include interest on car loans and enhanced tip and overtime relief.
- The 2026 tax filing season begins on January 26, 2026.
- The IRS plans to expand online services, encouraging electronic filing and direct deposits instead of paper checks.
- The IRS expects to receive approximately 164 million tax returns in the 2026 season.
- Updated rules will impact reporting for digital assets like cryptocurrencies, affecting the tax season.
- The IRS is using new guidelines for deductions, including a permanent 100% bonus depreciation.
- The National Taxpayer Advocate warned that staff reductions might affect service levels during the 2026 tax filing season.
