Yes, we’re looking at a late start to Tax Season next year. New IRS Commissioner Billy Long said at the recent National Association of Enrolled Agents (NAEA) annual meeting (per a friend’s email–I did not attend) that the IRS expects next year’s tax season to begin on February 16th. That’s President’s Day, so a February 17th beginning looks likely.
I’m not yet ready to call next year’s tax filing another “Tax Season From Hell,” but it sure looks that way to me. We have a lot of tax law changes, an even more compressed filing season than usual, and the IRS will be understaffed. It doesn’t look good (though that’s six months from now).
I’ve learned that version 0 of tax software is to be avoided. Tax software is quite complex, and there’s an interaction between the software companies and the IRS (of course). If the IRS isn’t ready to process returns, many forms from the software companies won’t be ready. Typically, some forms aren’t ready until one month after the first day the IRS accepts returns. That means many returns won’t be able to be filed until late March.
What does this mean for taxpayers? Lots and lots of extensions for 2025 tax returns filed in 2026. Higher costs for tax preparation next year are also likely. There are only so many hours in the day, and if tax season gets compressed–and that appears a near certainty–it’s another cap on supply. If supply goes down, price goes up; that’s basic economics.
Additionally, the IRS uses old–let’s be honest, it’s ancient–technology. We’re talking computers that are older than I am (dating to 1959). Everything I’m seeing looks like a lot of storm clouds on the horizon. That storm may miss us, but it sure doesn’t look that way.