IRS Issues Urgent Warning for Upcoming Tax Season: What You Need To Know

The IRS is urging Americans to start preparing now for the upcoming tax season. Several inflation-related changes and documentation requirements could affect how much you owe or receive in 2026. Taking steps early may help lower your financial stress and reduce filing delays. The agency says preparation is especially important as rules continue to evolve.

Here's what the IRS wants taxpayers to know before filing season begins.

2026 IRS changes that may impact your tax return

A number of IRS updates for 2026 could influence how returns are calculated and processed. These include changes to income thresholds, deductions, and generally required documentation.

While none are dramatic on their own, together they may alter final tax outcomes. Understanding the updates can help taxpayers avoid surprises.

Federal tax income brackets are changing

Federal income tax brackets are adjusting upward, even though marginal tax rates themselves remain unchanged. Higher income thresholds mean more earnings may be taxed at lower rates if wages do not rise as quickly.

This shift could potentially reduce tax liability for some filers compared with 2025.

2025 vs. 2026 federal income tax brackets

• 37%
• 2025: Over $626,350 (single) | $751,600 (married filing jointly)
• 2026: Over $640,600 (single) | $768,700 (married filing jointly)

• 35%
• 2025: Over $250,525 | $501,050
• 2026: Over $256,225 | $512,450

• 32%
• 2025: Over $197,300 | $394,600
• 2026: Over $201,775 | $403,550

• 24%
• 2025: Over $103,350 | $206,700
• 2026: Over $105,700 | $211,400

• 22%
• 2025: Over $48,475 | $96,950
• 2026: Over $50,400 | $100,800

• 12%
• 2025: Over $11,925 | $23,850
• 2026: Over $12,400 | $24,800

• 10%
• 2025: $11,925 or less | $23,850 or less
• 2026: $12,400 or less | $24,800 or less

The standard deduction is going up

The standard deduction is increasing again for the tax year 2026. Married couples filing jointly will see it rise to $32,200, up from $31,500 in 2025. Single filers and married individuals filing separately will have a $16,100 deduction, up from $15,750, while heads of household will receive $24,150, up from $23,625 in 2025.

A higher standard deduction may reduce taxable income for filers who do not itemize.

Which documents do you need to file your tax return?

The IRS urges waiting to file until all necessary tax documents are in hand. Missing or incorrect paperwork may delay refunds or trigger processing issues.

The agency highlights several documents that taxpayers should expect:

• Forms W-2 from your employer(s)
• Forms 1099-K, 1099-MISC, or other gig economy income statements
• Form 1099-INT for interest income
• Forms 1099 from banks, issuing agencies, or other payers
• Form 1095-A for Marketplace health insurance
• Records of digital asset transactions
• Any IRS letters
• CP01A Notice with your Identity Protection PIN

Make sure to keep "forever documents"

It's advisable to keep most tax records for at least three years, and even up to seven years if possible. However, certain documents should be retained indefinitely. These include records tied to major life events or legal status changes. Losing them could complicate future tax, legal, or financial processes.

Some examples of "forever documents" to keep permanently include birth and death certificates, adoption records, marriage or divorce decrees, Social Security cards, diplomas, and estate or gift tax records.

Steps taxpayers can take to prepare for the 2026 tax season

The IRS encourages proactive preparation to reduce filing delays and errors. Small steps taken now may simplify the process later.

Create an IRS online account

The IRS recommends creating or accessing an online account before filing season begins. Through the portal, taxpayers can view tax records, make payments, check balances, and retrieve their Identity Protection PIN.

Having access in advance can save time during filing. It may also help with resolving issues more quickly if questions arise.

Be sure to set up direct deposit

Direct deposit remains the fastest way to receive a tax refund. The IRS is continuing to phase out paper checks, making electronic payments more important.

Setting up or confirming bank account details ahead of time can prevent delays. This step is especially helpful for first-time filers or those changing banks.

Review last year's return for potential changes

Looking over your prior-year return can help identify changes that may affect your next filing. Income shifts, new dependents, or changes in deductions can alter tax outcomes.

Reviewing early allows time to gather additional documentation if needed. This step can also highlight opportunities to adjust withholding.

Bottom line

The IRS's warning for the upcoming tax season reflects a mix of income bracket adjustments, standard deduction increases, and documentation requirements. Preparing early may help reduce errors, delays, and unnecessary stress during filing.

Taking proactive steps now can help you make money moves that position you for a smoother 2026 tax season and fewer surprises when it's time to file.

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