2026 IRS Filing Season Report: What Taxpayers Should Know

The Internal Revenue Service processed most 2026 tax returns and issued most refunds without significant delays. But the experience was very different for taxpayers whose returns required additional review or direct assistance.

The National Taxpayer Advocate’s Fiscal Year 2027 Objectives Report to Congress, released June 24, 2026, found persistent problems involving frozen refunds, identity-theft cases, paper checks, and access to live IRS help.

Despite tax law changes, workforce reductions, leadership turnover, and other operational challenges, the IRS maintained a stable filing season for most taxpayers. However, the report also highlights where the system struggled, who was most affected, and what taxpayers can do when returns or refunds are delayed.

Key Findings From the 2026 IRS Filing Season

Note: The "refunds issued" statistic reflects only current-year refunds, while the "refunds issued by direct deposit" figure also includes refunds from prior tax years issued during the reporting period. Because the figures are based on different datasets, they should not be compared directly.

The 2026 Filing Season Worked Well for Most Taxpayers

By the end of the 2026 filing season, the IRS had processed nearly 139 million individual Forms 1040, with about 98% filed electronically. The report found that continued technology improvements helped the IRS process routine returns efficiently despite tax law changes, workforce reductions, and leadership turnover.

Most taxpayers whose returns moved through the automated system received refunds without significant issues.

Automation Helped Most Routine Returns Move Quickly

Most routine electronically filed returns moved through the IRS’s automated processing system without additional review, allowing most refunds to be issued without significant delay. The biggest challenges arose when returns required identity verification, fraud screening, income matching, or other IRS review and left the automated workflow.

IRS Online Accounts and Refund Tools Saw Heavy Use

Taxpayers made extensive use of IRS online accounts and refund-tracking tools during the 2026 filing season. The report found nearly 121 million Individual Online Account logins, more than 3.7 million information-return downloads, and approximately 346 million Where's My Refund? checks, up 9% from the previous year.

An IRS Individual Online Account allows taxpayers to access tax records, make payments, view certain notices, upload documents in response to some notices, receive refund-status notifications, and update direct-deposit information in limited circumstances. While it can't resolve every issue, it can help taxpayers manage many routine tax matters without calling the IRS.

Where the 2026 Filing Season Broke Down

The filing season looked successful in the aggregate, but headline statistics don't tell the whole story. Returns flagged for identity verification, fraud screening, income matching, or another review left the normal processing stream and were more vulnerable to delays. The following sections explain where those delays occurred and who they affected.

More Than 14 Million Returns Required Additional Review

A suspended return does not necessarily mean a taxpayer made a mistake or will experience a lengthy delay. Instead, it means the return left the IRS's normal processing stream so additional verification could be completed.

Returns may be suspended for several reasons, including:

• Identity verification requirements
• Income or withholding mismatches
• Fraud detection filters
• Missing or inconsistent information
• Other issues requiring additional IRS review

When a suspended return requires manual review or additional taxpayer action, processing can take longer than it does for a routine electronic return. More than one million taxpayers did not receive their refunds within the IRS’s normal processing period. Their total wait averaged about five and a half weeks. The report also notes that an unknown number of other taxpayers experienced shorter delays that remained within the IRS's standard processing window.

A return can be accepted but still be suspended for additional review before a refund is approved.

Does a Suspended Tax Return Mean You're Being Audited?

Not necessarily. A processing suspension can result from automated verification or missing information and is not automatically an audit.

IRS Phone Service Declined During the 2026 Filing Season

Although the IRS successfully processed most returns through its automated systems, taxpayers who needed to speak with a representative often faced longer wait times and greater difficulty getting assistance. The filing season data indicated the IRS received 48.1 million calls during the 2026 filing season, but telephone assistors answered only 9.9 million, or about 21% of all incoming calls. By comparison, IRS representatives answered 12.4 million calls during the 2025 filing season, or approximately 25% of calls received.

Taxpayers who reached a representative also waited longer for help. The average hold time increased from 8 minutes in 2025 to 14 minutes in 2026. Some specialized phone lines experienced even longer delays. For example, callers to the Installment Agreement and Balance Due line waited an average of 45 minutes, while taxpayers contacting the Taxpayer Protection Program for identity verification waited about 20 minutes on average.

It's also important to distinguish the IRS's reported Level of Service (LOS) from the percentage of calls answered by a live representative. The IRS reported a 73% LOS for its Accounts Management phone lines, but that metric applies only to certain types of calls and should not be interpreted to mean the agency answered 73% of all incoming calls. Across all filing-season calls, telephone assistors answered about 21%.

Paper Refund Checks Caused Confusion and Delays

During the 2026 filing season, the IRS implemented a federal directive that generally shifts federal payments toward electronic delivery. Direct deposit remained the primary refund method, but the transition created problems for taxpayers whose banking information was missing or invalid and for those who could not reasonably receive an electronic payment.

By April 27, 2026, the IRS had issued approximately four million notices to taxpayers with invalid or incomplete direct deposit information. These notices instructed taxpayers to update their banking information or, when eligible, request a paper-check exception. The report also found that some notices did not clearly explain all available options, leaving taxpayers unsure of their next steps.

Taxpayers who could not establish an online account or did not understand how to request an exception sometimes faced refund delays of six weeks or longer. The Taxpayer Advocate found that the notices omitted important information, including the option to call the IRS’s 1040 line to request a waiver.

You may receive a CP53E notice if your return does not include valid direct-deposit information or the financial institution rejects the deposit. The notice explains how to update your banking information or request an available paper-check exception. Follow the instructions in the notice and respond promptly if additional information is requested. The IRS will never ask you to verify banking information through an unsolicited phone call, text message, or email, so be cautious of tax-related scams.

Identity Theft Victims Still Faced Delays of About 20 Months

While most electronically filed returns were processed efficiently, taxpayers affected by tax-related identity theft continued to face some of the longest delays during the 2026 filing season. IRS data showed Identity Theft Victim Assistance (IDTVA) cases took about 20 months to resolve in many instances, with more than 500,000 cases still pending at the end of the filing season. For many taxpayers, these delays meant waiting months (or even years) for refunds while the IRS verified their identity and resolved fraudulent filings.

These delays occur because the IRS must determine which return belongs to the legitimate taxpayer before issuing a refund. Although those safeguards help prevent fraudulent refunds, they can significantly extend processing times for legitimate returns. One way to reduce the risk that someone will file a fraudulent federal return using your Social Security number is to enroll in the Identity Protection PIN (IP PIN) program, which requires a unique six-digit PIN to file a federal tax return using your Social Security number. (Internal link: Identity Protection PIN (IP PIN) Guide.)

If the IRS sends an identity verification letter, respond using only the method described in the notice and complete the verification process as soon as possible. Delays in responding can extend the time it takes to process your return and issue any refund you're owed.

When Should You Contact the Taxpayer Advocate Service?

If you're experiencing a prolonged identity theft case, facing financial hardship because of a delayed refund, or have been unable to resolve your issue through normal IRS channels, the Taxpayer Advocate Service (TAS) may be able to help. TAS is an independent organization within the IRS that assists taxpayers whose issues remain unresolved or whose circumstances require additional support. TAS cannot expedite every case or guarantee a particular outcome, but it may assist eligible taxpayers when an IRS problem is causing financial hardship or normal IRS channels have failed.

Which Taxpayers Faced the Greatest Barriers?

The report found that taxpayers who could not resolve their issues through automated systems often faced the greatest barriers to receiving assistance.

• Identity theft victims faced some of the longest delays while the IRS determined which return belonged to the legitimate taxpayer.
• Taxpayers requiring additional review experienced delays related to fraud screening, income or withholding verification, identity checks, or missing information.
• Paper-check recipients sometimes waited longer because refunds required additional processing or mailing.
• Older adults who relied on paper correspondence, telephone help, or paper refund checks could face additional barriers.
• Unbanked taxpayers could not always receive refunds electronically.
• Taxpayers with limited English proficiency sometimes faced barriers to understanding IRS notices or obtaining assistance.

The Taxpayer Advocate emphasized that a digital-first IRS should not become a digital-only IRS, since many taxpayers still require personalized assistance.

What the Taxpayer Advocate Wants the IRS to Address in Fiscal Year 2027

The report identifies several Taxpayer Advocate Service priorities for fiscal year 2027, including:

• Faster resolution of identity theft cases by improving case management and reducing lengthy processing times for legitimate taxpayers.
• Better refund status communication so taxpayers receive clearer updates when returns require additional review or verification.
• Improved paper-check processing to reduce mailing delays and provide more reliable payment options for taxpayers who cannot use direct deposit.
• Clearer math-error notices written in plain language so taxpayers understand what changed on their return and what actions they can take.
• Improved processing for returns filed on behalf of deceased taxpayers to reduce delays for surviving spouses, executors, and other authorized representatives.

The report also addresses penalty administration, power-of-attorney processing, digital-asset reporting, refund limitation periods, and online services for tax professionals.

Together, these recommendations focus on improving the taxpayer experience whenever returns fall outside the IRS's automated processing system. Better communication, faster case resolution, and expanded self-service tools could help reduce delays while making it easier for taxpayers to resolve issues when they arise.

What Taxpayers Can Do When an IRS Issue is Delayed

If your return or refund is taking longer than expected, taking the right steps early can help prevent additional delays. Here's what to do based on your situation.

If Your Refund Is Delayed

If your refund is taking longer than expected:

1. Check your refund status using Where's My Refund? or your IRS Online Account.
2. Review your mail and online account for any IRS notices requesting additional information.
3. Do not file a second return unless the IRS instructs you to do so. A duplicate filing can create additional processing problems.
4. Contact the IRS only when Where’s My Refund?, your IRS Online Account, or an IRS notice directs you to call, or when the IRS’s stated processing period has passed without an update.

If the IRS Requests Identity Verification

If the IRS asks you to verify your identity:

1. Read the notice carefully and follow the verification instructions provided.
2. Gather any requested documents before completing the process.
3. After the current issue is resolved, consider enrolling in the Identity Protection PIN (IP PIN) program to help protect future returns.

If Direct Deposit Doesn't Go Through

If the IRS can't deposit your refund electronically:

1. Check your mail and IRS Individual Online Account for a notice about missing, invalid, or rejected direct-deposit information.
2. Follow the notice instructions to update eligible banking information or request an available paper-check exception.
3. Be cautious of scams—the IRS will never request banking information through unsolicited phone calls, texts, or emails.

If You Can't Resolve Your Issue

If you're unable to resolve your issue through normal IRS channels:

1. Keep copies of all IRS notices and records of your communications.
2. Respond promptly to any IRS requests for information.
3. If your issue remains unresolved or is causing financial hardship, consider contacting the Taxpayer Advocate Service (TAS) for assistance.

What This Report Does Not Mean

The report highlights important challenges from the 2026 filing season, but some of its findings are easy to misinterpret. Here are a few common misconceptions.

• A suspended return is not automatically an audit.
• Fourteen million suspended returns does not mean 14 million refunds were delayed beyond normal processing.
• The 73% Level of Service does not mean the IRS answered 73% of all calls.
• Paper checks have not disappeared, but they are generally available through exceptions.

Final Thoughts on the 2026 Filing Season

The Taxpayer Advocate’s report highlights two very different filing experiences. Most routine returns moved through the IRS system without significant problems, but taxpayers whose returns required additional review often faced fewer options and longer delays. Responding promptly to IRS notices, providing accurate banking information, and protecting your identity can help reduce avoidable processing problems.

File Your Return with Confidence

An accurate return can reduce preventable processing problems, although it cannot eliminate IRS identity checks, fraud filters, or other forms of review. FileTax.com guides you through your federal return, helps identify common filing errors, and gives you a clear path to submitting accurate information.