The 2026 tax season is expected to move smoothly for many Americans, but new warnings suggest that not everything will be simple. A recent report to Congress explains that while most tax returns should be processed on time, some taxpayers may face delays, confusion, and added challenges when problems arise.

What the New Report Says About Tax Season 2026

In her 2025 Annual Report to Congress, Erin Collins, the National Taxpayer Advocate, explained that the upcoming filing season comes with added pressure for the Internal Revenue Service. The agency is dealing with a major reduction in staff, leadership changes, and the task of applying complicated tax law updates that were approved retroactively for the 2025 tax year. These factors increase the risk of errors and delays, especially for taxpayers who need help resolving issues.

Complex Tax Law Changes Add Confusion

The report notes that recent tax changes are generally favorable for taxpayers, expanding eligibility for deductions and credits. However, these benefits come with complicated income limits, phaseouts, and eligibility rules. Many taxpayers may struggle to understand how the new rules apply to them, and the IRS must update systems, forms, and guidance quickly to keep up.

Paper Checks Are Being Phased Out

One major change in the 2026 tax season involves refunds. The IRS is moving away from paper checks and encouraging direct deposit instead. Paper refunds are more likely to be lost, stolen, or delayed, which often leads to long and stressful resolution processes. Taxpayers who do not provide banking information may see their refunds held for several weeks while the IRS requests updated details.

This transition could be especially difficult for people who are unbanked or underbanked, including elderly and disabled taxpayers who have traditionally relied on paper checks to receive their refunds.

Paper Returns May Face New Risks

Although most people file electronically, millions still submit paper tax returns. In 2026, paper returns face added uncertainty due to a new system that relies on private contractors to scan and digitize returns. While this approach could reduce processing time, it also introduces concerns about data security and accuracy, especially given past breaches involving contractor employees.

Ongoing Delays for Certain Taxpayers

The report also highlights long delays for taxpayers dealing with identity theft or amended returns. Some individuals wait many months, or even years, for issues to be resolved and refunds issued. These delays can cause serious financial hardship, especially for low-income households and small businesses that depend on refund money.

Customer Service Remains a Weak Spot

Another concern is IRS customer service. With fewer experienced staff and increased use of automated phone systems, many taxpayers report difficulty getting clear answers. Call resolution quality is not consistently measured, and satisfaction with automated tools remains low.

What Taxpayers Should Expect

Most refunds will still arrive on time, especially for those who file electronically and choose direct deposit. However, taxpayers who encounter problems may face longer waits and limited support. Filing early, double-checking information, and using electronic options can help reduce risk.

Disclaimer: This article is for informational purposes only and does not provide legal, tax, or financial advice. Tax laws, IRS procedures, staffing levels, and refund processing timelines may change. Individual experiences may vary. Readers should consult official IRS resources or a qualified tax professional for guidance specific to their situation.