IRS Launches 2026 Tax Season Amid Law Changes And Delays

The 2026 tax season kicked off on January 26, marking a period of significant change and anticipation for millions of Americans awaiting their refunds. Both the Internal Revenue Service (IRS) and the Oregon Department of Revenue began processing electronically filed returns for tax year 2025, ushering in a wave of new tax laws, refund tracking tools, and practical advice for navigating what promises to be a pivotal year for taxpayers nationwide.

According to KTVZ, Oregon taxpayers can expect their first refunds—including a share of the state’s $1.41 billion “kicker” credit—as soon as February 17, provided they file electronically and opt for direct deposit. The Oregon Department of Revenue warns that those choosing paper returns will face a much longer wait, with refunds not starting to be issued until early April due to processing delays. This lag is partly attributed to the IRS’s late provision of necessary tax forms to Oregon authorities in the closing months of 2025, which pushed back the state’s ability to process paper returns until the end of March.

This emphasis on electronic filing isn’t unique to Oregon. Nationally, the IRS expects to receive approximately 164 million individual tax returns for the 2025 tax year, with most Americans filing electronically. IRS Chief Executive Officer Frank J. Bisignano underscored the agency’s commitment to modernization, stating, “Just as we did back in 1986, today the IRS encourages taxpayers to speed the processing of their returns by using e-file, instead of paper. And to speed the processing of any refund due, we also encourage the use of direct deposit.” As reported by multiple sources, the IRS began phasing out paper tax refund checks in September 2025, following a presidential executive order. Now, most taxpayers must provide their routing and account numbers to receive refunds directly into their bank accounts.

For those eager to know when their money will arrive, the IRS offers several digital tools. The “Where’s My Refund?” online portal and the IRS2Go mobile app allow filers to track their refund status, with updates available every 24 hours. Taxpayers will need their Social Security number, filing status, and refund amount to use these services. The IRS also provides projected deposit dates for those claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), with most refunds for these credits expected to be available by March 2, 2026, for direct deposit filers with no complications.

In Oregon, the Revenue Online portal offers similar conveniences. Taxpayers can check the status of their returns, ensure their account information is current, and download important documents like Form 1099-G, which is no longer mailed. Those who received unemployment insurance or Paid Leave Oregon benefits in 2025 will get a separate 1099-G from the Oregon Employment Department by January 31, 2026.

The IRS and state officials alike stress the importance of accuracy and patience. Filing too quickly—especially in a “kicker” year when many are eager for their refunds—can backfire if crucial documents like W-2s or 1099s are missing. Incomplete or inconsistent information is a leading cause of refund delays, as are errors in bank details or claims related to credits like the EITC or Child Tax Credit, which, by law, cannot be paid before mid-February. The IRS cautions that most electronic returns are processed within 21 days, but more complex filings or those requiring additional review may take longer. For example, early filers with simple returns might see refunds as early as late January or February, while others could wait until March or April.

Refunds matter more than ever this year. As reported by IRS data and highlighted by several news outlets, the average refund in 2025 was $2,939, but with sweeping tax rule changes for 2026, some Americans could see their refunds rise by as much as 30%. The average refund last year, according to the IRS, was $3,167, and Treasury Secretary Scott Bessent has repeatedly stated that the effects of the Republican tax law will result in bigger refunds this season.

What’s behind these changes? The tax and spending package signed into law last summer, commonly referred to as the One Big Beautiful Bill Act (OBBBA), introduced major updates. There are new tax relief provisions for tips and overtime, fresh deductions for qualifying older Americans, and a temporary increase in the state and local tax deduction limit from $10,000 to $40,000 for tax years 2025 through 2029. The standard deduction amounts for 2025 are now $31,500 for married couples filing jointly, $23,625 for heads of households, and $15,750 for single filers or married individuals filing separately. In addition, the OBBBA established a Senior Deduction of up to $6,000 per year for those age 65 or older, though it phases out at higher income levels.

Despite the promise of larger refunds, this year’s tax season isn’t without its challenges. The IRS, as reported by Accounting Today and others, has faced staffing and budget cuts, a snowstorm that disrupted transportation nationwide, and the looming threat of a government shutdown. The National Treasury Employees Union, representing IRS staff, praised employees for their dedication: “Despite the challenges of the last year, IRS employees continue to show up every day to serve the public, working long hours to guarantee excellent customer service and a smooth filing season for millions of Americans.”

Cybersecurity is also a growing concern. The Treasury Inspector General for Tax Administration kicked off Identity Theft Awareness Week on the first day of filing, warning that tax refunds are an attractive target for fraudsters. The Treasury Department, in a high-profile move, cancelled contracts with consulting firm Booz Allen Hamilton after a contractor leaked the tax returns of high-profile individuals, including former President Donald Trump and Elon Musk, as well as hundreds of thousands of other taxpayers. Treasury Secretary Bessent commented, “Canceling these contracts is an essential step to increasing Americans’ trust in government.”

For those filing in Oregon, the “kicker” is a unique feature. It’s a refundable credit based on a percentage of 2024 Oregon personal income tax liability, available only to those who filed both 2024 and 2025 returns. The credit is not sent as a separate check but instead increases a taxpayer’s refund or reduces their tax owed. Taxpayers can calculate their kicker using a tool on Revenue Online, requiring their name, Social Security number, and filing status for both years.

As the April 15, 2026, federal filing deadline approaches, both the IRS and state agencies urge Americans to gather all necessary records, file electronically, and use direct deposit to ensure the fastest possible refunds. Extensions are available, but refunds will be delayed until the IRS receives and processes the return. In a year marked by historic anniversaries—the 250th of the Declaration of Independence and the 40th of e-filing—tax agencies are betting on technology, transparency, and taxpayer vigilance to keep the season running smoothly.

With new laws, bigger refunds, and digital tools at their disposal, taxpayers have more ways than ever to take charge of their filing experience—provided they follow the rules and stay alert for pitfalls along the way.