2026 filing season likely delayed as IRS implements new tax package

IRS Commissioner Billy Long anticipates a delayed start to the 2026 tax filing season, likely beginning around Presidents Day (Feb. 17), citing the time needed to implement a newly enacted tax package. The fate of the IRS’s Direct File tool is also confirmed: it has been effectively discontinued.

Filing season delay explained

Long disclosed during a recent speech that the filing season will likely not open until mid-February, rather than the typical late-January start. The delay stems from the IRS needing time to integrate tax changes from the OBBBA, which makes permanent several provisions of the Tax Cuts and Jobs Act and introduces deductions for tips, overtime, and Social Security benefits for seniors.

The last time the IRS opened the season in February was in 2021, due to pandemic-related tax changes and stimulus payments.

Operational challenges at the IRS

Since the start of the year, the IRS has lost approximately 25% of its workforce, primarily due to a deferred resignation program initiated under the Trump administration. The IT division has been hit hardest, losing over 2,000 staff. This shortage has raised concerns from the National Taxpayer Advocate about potential disruptions in the absence of technology upgrades.

Demise of Direct File

Long confirmed Direct File, piloted in 2024, is no longer under consideration. The focus has shifted to “direct audit,” with no indication of reviving the program.

To note, the Republican reconciliation bill originally proposed eliminating Direct File, but the Senate stripped that provision. The Treasury is now tasked with evaluating a public-private alternative to any IRS-run e-filing programs. The CIO of Treasury, Sam Corcos, previously recommended discontinuing the tool.

Internal support for Direct File has evaporated, with staffing reduced from 27 to 5. An FOIA-released report noted user growth, though it failed to meet projections partly due to public misinformation.