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By Sam Stevenson
Associate News Editor
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The Internal Revenue Service (IRS) has made some major changes to its operations ahead of filing season.
Why It Matters
Days before the 2026 filing season opens, the IRS announced leadership changes and a modernization drive aimed at improving taxpayer service and compliance.
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It comes as the agency implements tax relief on tips and overtime and new deductions for older Americans, while responding to warnings from the National Taxpayer Advocate (NTA) that workforce reductions could strain service levels.
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What To Know
In a letter to roughly 74,000 employees, IRS Chief Executive Officer Frank Bisignano outlined a reorganization of executive leadership and set priorities to enhance customer service, improve collections, and protect privacy.
It coincides with the launch of new tax provisions enacted last year and the agency’s plans to expand online services, direct deposit use, and digital tools for filers.
The IRS will open the 2026 filing season on Monday, January 26, 2026, as it begins processing millions of returns that reflect new deductions and credits from the so-called 'One, Big, Beautiful Bill'.
Gary Shapley, a whistleblower who delivered public testimony on the federal inquiry into Hunter Biden’s taxes, was named deputy chief of Criminal Investigation (CI).
Jarod Koopman will replace retiring CI chief Guy Ficco and serve as chief tax compliance officer, and Joseph Ziegler, another Hunter Biden whistleblower, was appointed chief of internal consulting, according to the letter as cited by the Associated Press.
The IRS expects to receive about 164 million individual returns this year, similar to last year, when the average refund was $3,167, according to agency data.
The agency is urging taxpayers to use Online Accounts, file electronically through IRS Free File when eligible, and choose direct deposit, as paper refund checks begin to be phased out under a presidential executive order modernizing federal payments.
IRS guidance highlights new or expanded deductions enacted under last year’s tax law, including a permanent 100 percent bonus depreciation regime and a new deduction for interest on qualifying car loans.
Taxpayers should review updated rules for payment‑app income and digital‑asset reporting, as Form 1099‑K thresholds and new disclosure requirements for crypto and other digital assets could affect 2025 income reported during the 2026 filing season.
The National Taxpayer Advocate’s June report to Congress cautioned that the 2026 filing season may be turbulent, following widespread layoffs last year linked to the Department of Government Efficiency.
Tax Brackets and Standard Deduction: Preview of 2026 Parameters
The IRS uses the chained CPI to adjust more than 60 provisions annually, with seven marginal rates remaining in place for 2025 returns filed in 2026.
For tax year 2026, the standard deduction is scheduled to rise to $16,100 for single filers and $32,200 for joint filers, with new senior deductions and other changes tied to legislation enacted in 2025.
New deductions and credits are rolling out under the 2025 law, including car loan interest, tip and overtime relief, and permanent 100 percent bonus depreciation.
What People Are Saying
Bisignano said in his internal letter that he was "confident that with this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public."
NTA Erin M. Collins said in her June report to Congress: "With the IRS workforce reduced by 26 percent and significant tax law changes on the horizon, there are risks to next year’s filing season."
The IRS said in a January 6 advisory: "Take a few steps today, reviewing tax law changes, gathering documents and using online tools, to help ensure a smoother less stressful experience when filing taxes in 2026.
"Visit Get Ready on IRS.gov for checklists, updates and no-cost filing options."
What Happens Next
The filing season will open on January 26, 2026, and the IRS will begin accepting and processing individual returns while rolling out additional guidance tied to new deductions and reporting changes.
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