Tax professionals should start the 2026 filing season fully informed of the major shifts in tax law and IRS procedures. Many of this year’s key updates stem from the (OBBB) otherwise known as the Working Families Tax Cut Act, which enacted sweeping changes in 2025 that apply for returns due in April 2026.
Here are five IRS changes to watch this tax season:
1. Opening Day Is January 26, 2026
The IRS officially opened the 2026 tax filing season on January 26, 2026 — marking the starting line for processing millions of returns amid ongoing IRS modernization efforts.
2. Expanded Standard Deductions & Bracket Adjustments
For tax year 2025 returns filed in 2026:
- Many income tax brackets and standard deduction levels have increased for inflation, helping to mitigate bracket creep.
- These adjustments may also help many taxpayers reduce taxable income without itemizing.
For preparers, this could mean:
- Less liability for many clients in higher brackets.
- A renewed opportunity to review withholding and estimated payments.
3. New Deductions and Credits from OBBB
The One Big Beautiful Bill Act enacted several new deductions and credits that can meaningfully affect returns this year:
- Increased SALT deduction cap (link to SALT blog post when ready): Taxpayers may deduct up to $40,000 in state and local taxes — up from $10,000 under prior law.
- Senior deduction: A special deduction available for older taxpayers
- New credits and enhancements: Expanded limits or new credits aimed at families, workers, and other groups.
Tax professionals should verify eligibility for these credits and apply them accurately.
4. New and Modified Reporting Requirements
Several new forms or reporting rules are coming into greater focus for this tax season:
- Proposed changes affecting Form 1099-K reporting thresholds may impact third‑party payments or mobile payment apps (like Venmo or PayPal) and backup withholding. The IRS has issued guidance on this proposal affecting when payments are reported, though formal rules could evolve in 2026.
- New forms such as those for digital assets (e.g., future Form 1099-DA) and car loan interest are gaining attention for tax years beyond 2025, so preparers should watch for pending IRS releases as the season progresses.
These reporting updates could directly affect how professionals handle income documentation and compliance.
5. Child Tax Credit Changes and Eligibility Rules
The Child Tax Credit (CTC) has been adjusted for inflation and eligibility rules have changed, including stricter Social Security number (SSN) requirements for both the parent and child. The maximum credit amount is slightly higher and indexed going forward.
This matters for preparers because:
- Some households previously qualifying may now need SSNs to claim CTC
- New threshold and phase-in rules may change refund outcomes
Why Staying Updated Matters
With major policy changes now embedded in IRS procedures and tax law — tax professionals have a greater need than ever to stay current, accurate, and proactive.
As the 2026 filing season is underway, preparing early with a researched strategy is key. Whether you’re tracking bracket updates, new deductions, or reporting rule shifts, staying up-to-date with the IRS and researching changes can be very helpful.
Explore more. Get recent IRS tax updates by downloading our latest guide, Prepare for Policy Changes Ahead of Tax Season.
Disclaimer: This article is for informational purposes only and not legal or financial advice.
