President Trump’s “One, Big, Beautiful Bill” faces scrutiny as the IRS kicks off the 2026 tax season amid workforce cuts and procedural upheaval.
Story Snapshot
- The IRS begins accepting 2025 tax returns on January 26, 2026.
- Major changes from the “One, Big, Beautiful Bill” impact this tax season.
- IRS workforce has been reduced by 26% since the Biden administration.
- Concerns about service delays and taxpayer confusion are rising.
IRS Opens 2026 Filing Season
The Internal Revenue Service (IRS) will start accepting 2025 tax returns on January 26, 2026, marking the official beginning of the 2026 tax filing season. This year, taxpayers will need to navigate the complexities of the newly enacted “One, Big, Beautiful Bill,” a significant Republican tax and spending package.
The law introduces new deductions and credits, requiring updated forms and procedures that taxpayers and professionals must quickly adapt to.
The tax season’s start is shadowed by concerns over the IRS’s reduced workforce. Since the end of the Biden administration, the IRS has experienced a 26% reduction in staff, largely due to planned layoffs and buyouts implemented by the Department of Government Efficiency.
This decrease raises alarms about the potential for delays in processing returns and responding to taxpayer inquiries, especially with the new legislative changes taking effect.
Early birds can begin filing their taxes on Jan. 26 this year https://t.co/D5ELXlyajx
— New York Daily News (@NYDailyNews) January 8, 2026
New Forms and Legislative Changes
Taxpayers will encounter new forms such as Schedule 1-A, designed to account for exclusions like tips and overtime, and Form 1099-DA for digital asset reporting. These changes aim to modernize the tax system, encouraging electronic interactions over traditional paper checks.
The shift to direct deposit for refunds is part of an executive order to phase out paper checks, which could expedite refunds for banked taxpayers but complicate matters for those without banking access.
The introduction of these forms reflects a broader regulatory tightening, particularly concerning digital assets.
The increased scrutiny could lead to greater compliance demands and possibly more tax revenue from this growing sector. However, the rapid implementation of these changes may create confusion and compliance risks among taxpayers and their advisors.
Concerns Over IRS Readiness
Despite assurances from IRS leadership that systems are updated and ready to efficiently process returns, the National Taxpayer Advocate warns of a potentially rocky filing season.
The Advocate highlights risks due to the workforce reduction and the complexity of the new law. Tax professionals are urged to prepare for possible delays and staggered filings, as not all forms may be ready by the opening day.
While the IRS promotes self-service online tools and resources, the agency’s capacity to handle a smooth filing season is under scrutiny. As taxpayers and preparers brace for the season, the emphasis remains on early preparation and awareness of the new tax rules to avoid errors and delays.
Sources:
Early birds can begin filing their taxes on Jan. 26 this year (ABC News)
IRS tax season 2026: What to know about taxes and refunds (Axios)
