Tax refunds could be up. When will the IRS accept returns in 2026?

Core Insights - The IRS is undergoing significant changes in leadership and operational structure, with Frank Bisignano appointed as CEO while retaining his role as commissioner of the Social Security Administration [1] - The 2026 tax season is expected to have unique characteristics due to job cuts and leadership turnover within the IRS in 2025, potentially leading to delays in tax refunds for early filers [2][3] - New tax rules introduced by the One Big Beautiful Bill Act are expected to significantly impact tax refunds, with projections indicating that average refunds could increase substantially for many taxpayers [12][17] IRS Leadership and Structure - Frank Bisignano has been named CEO of the IRS, reporting to Treasury Secretary Scott Bessent, who is currently acting IRS commissioner [1] - The IRS has faced significant job cuts and turnover in leadership, which may affect its operations during the upcoming tax season [2] Tax Season 2026 Expectations - The official start date for the 2026 tax season has not yet been announced, but it is typically revealed in January [4] - Tax experts anticipate a possible delay in the kickoff of the tax season, which could affect the timing of tax refunds for early filers [3] Changes in Tax Refund Processing - The IRS will no longer issue tax refunds by paper check for most individual taxpayers, requiring direct deposit for refunds [5] - Taxpayers will need to file a new Schedule 1-A to claim key tax breaks, which will only be available in finalized form [5][12] New Tax Breaks and Deductions - Significant changes in tax rules for 2025 federal income tax returns include new deductions for overtime pay, tip income, and auto loan interest, which may lead to larger refunds for some taxpayers [11][20] - The new tax breaks come with specific income thresholds and phase-out rules that taxpayers must navigate [20] Projected Refund Changes - The Tax Foundation estimates that average refunds could increase by $300 to $1,000 due to the new tax cuts, potentially raising average refunds to upwards of $4,000 under favorable conditions [17][18] - The IRS has not adjusted withholding tables following the new law, meaning many taxpayers may receive larger refunds at tax filing rather than through increased take-home pay during the year [15] Direct Deposit Requirements - Taxpayers will be required to provide direct deposit information for their refunds, with options available for those without bank accounts [19][21] - Failure to provide direct deposit information may result in delayed refunds, as the IRS will issue paper checks only after certain conditions are met [22][24]