Refunds are larger. Self-prepared returns are increasing. More taxpayers are using digital services.
But what do these trends mean for your firm? What the latest IRS filing season data means for your clients, your practice, and the future of tax preparation.
From the growth of self-prepared returns to rising refund amounts and increased reliance on digital services, these IRS trends and stats can shape client expectations and influence the future of your practice. Here are three IRS trends and tips on how to move forward.
1. Total Returns Received Decreased Slightly
2025: 140.6 million
2026: 140.2 million
Change: -0.3%
What This Means
The overall tax return market remains stable. Despite concerns about economic conditions and changing taxpayer behavior, the total number of returns filed remains largely unchanged.
The small decline is not significant enough to indicate a shrinking tax preparation market.
Tips for Tax Pros
- Focus on client retention rather than worrying about a declining market.
- Continue marketing efforts aimed at taxpayers who switch preparers each year.
- Track your own year-over-year return volume to ensure you are growing faster than the overall market.
Moving Forward
Growth opportunities are more likely to come from winning market share than from growth in the overall number of taxpayers filing returns.
2. Total Returns Processed Increased
2025: 138.1 million
2026: 138.6 million
Change: +0.4%
What This Means
The IRS processed more returns despite receiving slightly fewer returns overall.
This suggests continued improvements in IRS processing efficiency.
Tips for Tax Pros
- Set client expectations for potentially faster processing than in recent years.
- Encourage clients to file complete and accurate returns to avoid delays caused by IRS correspondence.
- Continue monitoring IRS processing announcements throughout filing season.
Moving Forward
IRS efficiency improvements can reduce refund-related client inquiries, allowing staff to focus on advisory services and client support.
3. E-Filing Continues to Grow
2025: 136.2 million
2026: 137.6 million
Change: +1.0%
What This Means
Electronic filing continues to dominate return submission methods.
Paper filing is becoming increasingly rare.
Tips for Tax Pros
- Continue promoting e-file adoption among any remaining paper-filing clients.
- Review internal workflows to eliminate paper-based bottlenecks.
- Invest in digital signature and document collection tools.
Moving Forward
Clients increasingly expect a fully digital experience from document collection through filing and delivery.
Download our free infographic to discover what the latest IRS filing season data reveals about taxpayer behavior—and how to prepare for what’s next.
Stay tuned for more tips, trends, and insights. We’ll also have a downloadable guide with the latest updates coming soon.
