Tax season tends to punish procrastination, mostly in boring ways. Missing forms. Refund delays. Extra letters in the mail.
The IRS recently shared a short list of steps you can take now to prepare to file in 2026 (for your 2025 tax return). The goal is simple: fewer surprises and a smoother filing season.
Here are the updates they want taxpayers to pay attention to, and what we think matters most for real people.
Start with your IRS Online Account
One of the most useful moves you can make early is to access your IRS account and confirm your information is in order. The IRS calls out the IRS Individual Online Account as a key tool for viewing account details, making payments, managing preferences, and protecting your tax information.
If you have not set it up yet, do it before filing season pressure hits.
Refunds are shifting away from paper checks
The IRS says it is phasing out paper refund checks due to a federal initiative tied to Modernizing Payments To and From America’s Bank Account and is encouraging taxpayers to use direct deposit.
If you do not currently have a bank account, the IRS points taxpayers to options for opening one through the FDIC. The takeaway is straightforward: electronic refunds are becoming the standard, so it is worth making sure your refund method will not slow you down.
New 2025 tax law changes could affect your 2026 filing
The IRS also flags recent legislation, including the One, Big, Beautiful Bill Act, which includes new deductions and credits that may affect your 2025 return.
They also note an important timing detail starting in 2025: to claim certain credits for other dependents, the taxpayer (and spouse, if filing jointly) must have a valid SSN or ITIN issued on or before the return due date, including extensions.
If you have dependents and any SSN or ITIN situation is still in progress, it is worth planning ahead. This is one of those issues that can cause an unpleasant surprise if it is discovered late.
New Trump Accounts for eligible children
The IRS mentions a new retirement savings vehicle for children under 18 with a valid SSN, called “Trump Accounts.” Details and eligibility rules are on trumpaccounts.gov.
If this applies to your family, it is worth reviewing the requirements carefully. When new programs launch, the rules matter, and it is easy to misunderstand what qualifies.
Payment apps and online sales are still taxable
The IRS also reminds taxpayers that income from side work, gig activity, and sales of goods and services is taxable.
They specifically reference Form 1099-K, Payment Card and Third Party Network Transactions. According to the IRS, payment card companies issue 1099-Ks for any amount, and payment apps and online marketplaces issue them when payments exceed $20,000 and more than 200 transactions in a year.
The main issue we see is not the form itself. It is that people mix personal and business transactions, then try to untangle it under a deadline. If you use payment apps, keeping your records clean now will save you stress later.
Digital assets still require reporting
If you bought, sold, or received digital assets such as cryptocurrency, stablecoins, or NFTs, the IRS says you must report those transactions. Some taxpayers may receive Form 1099-DA from brokers.
You also still need to answer the digital asset question on Form 1040 and report any related income, gains, or losses. The IRS points to their Digital Assets page for more information.
This is an area where small mistakes tend to create bigger clean-up later, so it is worth handling carefully.
A simple way to prepare to file in 2026
The IRS sums it up well. Review updates, gather documents, and use online tools.
If you want their full checklist and no-cost filing options, start here: Get Ready.
We can help you stay ahead of filing season
If your situation includes dependents, payment app income, online sales, or digital assets, a little planning goes a long way. We can help you get organized early, avoid common reporting issues, and file with confidence when the time comes.
Contact Torkelson & Associates CPAs to get help.