With tax refunds predicted to be higher this season, it might seem appealing to file sooner. However, hasty submissions could backfire.
First things first—gathering all your tax returns is crucial. If you overlook any documents, it might lead to processing delays or even bigger issues, as experts highlight.
Every year, employers and financial institutions report their income via forms such as W-2 and 1099. A copy goes to you and to the IRS, making it more likely for the agency’s systems to catch any missing or incorrect information.
April Walker, a senior manager at the American Institute of Certified Public Accountants, said, “The reasons for IRS audits aren’t always clear, but one effective way to avoid them is to report everything thoroughly.”
If there are mistakes or missing details, you might receive an automated notification. This CP2000 announcement will outline what the IRS believes is missing based on what they received. You’ll also find suggested adjustments and the opportunity to accept or challenge those changes.
Josh Youngblood, who runs the Dallas-based tax firm Youngblood Group, noted that filers might face “accuracy-related penalties” for unreported income, though this doesn’t automatically mean an audit will follow. He’s also an Enrolled Agent, which allows him to represent taxpayers before the IRS.
The upcoming 2026 filing season could present “greater challenges” for taxpayers. The IRS faces a 27% budget cut, along with a leadership change and the implementation of tax reforms initiated by Donald Trump, according to a recent report from a national taxpayer advocacy group.
Experts advise that accurate initial filings are essential this year, as there may be delays in taxpayer services.
If you need a tax form
As reported by the AICPA, most tax forms are typically sent out by late January. Some, however, might not arrive until mid-February or even March.
For instance, Walker mentioned that investment 1099s generally come last, particularly for more intricate assets. The document you first get from your financial institution could indicate that a revised version will follow later on.
Regarding revenue, anticipate receiving W-2 forms for wages, 1099-NEC for contract work, 1099-G for unemployment income, and 1099-R for retirement plan distributions, among others.
If you’re claiming new deductions for tips or overtime income this year, your employer might not report those figures on your W-2 or 1099, requiring you to self-calculate your income for those tax breaks.
Some filers may also receive Form 1099-DA, which pertains to digital asset transactions from the previous year.
Other relevant forms exist for claiming tax credits and deductions. Certain “above-the-line” deductions can reduce your taxes even if you take the standard deduction. Such forms include 1098-E for student loan interest, 5498 for personal retirement account contributions, and 5498-SA for health savings account deposits.
