Why more individuals and businesses may receive IRS notices this 2026 tax season

If you're a taxpayer, prepare yourself for this 2026 tax season, as more individuals and businesses may get an Internal Revenue Service (IRS) notice due to factors like new laws and staffing shortages. High-risk scams, also known as the "Dirty Dozen," are compounding the problem, too.

As a report from the Central Oregon Daily News points out, the IRS was on track to issue over 830,000 notices of IRS Notice CP53E alone by mid-March of 2026. CP53E notices are for individual taxpayers who failed to provide updated bank account information on their tax returns.

The required updates, in turn, have to do with changing laws, particularly the implementation of Executive Order 14247.

While receiving IRS notices can be "scary," panicking shouldn't be your first reaction. Knowing the reasons behind their expected increase can help you understand why you shouldn't stress out and what to do instead.

What Is the Tax Season?

The term "tax season" refers to the annual period in which taxpayers prepare and file their income tax returns. Most working U.S. citizens and permanent residents must file a tax return if their earnings exceed the "standard deduction threshold."

The Consumer Financial Protection Bureau says the standard deduction threshold for 2025 (tax season 2026) is $31,500 for joint married filings. If you're a single filer, the threshold is $15,750.

If your income is below those thresholds, you may not have to file a return. You should still consider doing so, though, as you may receive a refund.

What Are Tax Season Months? 

Tax season months typically include January through April. A guide published by the IRS provides the following key dates and guidelines for the 2026 IRS tax filing season:

  • January 26, 2026: Opening date of the 2026 IRS tax filing season
  • January 9, 2026: Acceptance of individual tax returns filed only by qualified taxpayers
  • April 15, 2026: The 2026 tax season deadline

The last day of tax season is the final day for filing returns. It's also the last day for taxpayers to pay any taxes due.

Why Could There Be More Individuals and Businesses Getting IRS Notices This Tax Season? 

From new laws to staffing shortages within the IRS, these are among the top reasons behind the possibility of more American taxpayers receiving IRS letters or notices this 2026 tax season.

Growing Dirty Dozen scams may also trigger more IRS audits.

Executive Order 14247 

Executive Order 14247 is about "modernizing payments to and from America's bank accounts." According to the White House website, section 3 of the EO mandated the Secretary of the Treasury to stop using paper checks when issuing federal disbursements (such as tax refunds) effective September 30, 2025.

EO 14247 is the reason the IRS supposedly had to issue over 830,000 CP53E notices by mid-March of this year. If you get one, it means the IRS had to freeze or delay your refund, most likely because you didn't include valid bank account details on your tax return.

Receiving a CP53E notice requires you to take action within 30 days. Head over to your IRS Online Account and update your banking information to get a direct deposit of your refund.

One Big Beautiful Bill Act (OBBBA) 

OBBBA, a major federal U.S. tax and spending law signed last July 4, 2025, impacts the tax filing process throughout 2025 to 2028. It brings about many changes, including:

  • New and specific deductions for overtime pay, tip income, and car loan interest
  • Income-based phaseouts
  • Charitable contributions

Given OBBBA's complexities, it's easy to see how taxpayers could misinterpret the changes, leading to errors in their tax returns. Such mistakes can trigger an IRS audit notice.

You shouldn't panic if you get such an IRS audit notice, but don't delay taking action, either.

Read the letter with care, and consider exploring the role of an IRS attorney in clearing up matters. IRS attorneys specialize in tax laws and can provide expert legal advice and representation.

Staffing Shortages 

Staffing shortages within the IRS are creating bottlenecks and more work for remaining staff while potentially increasing the number of taxpayers getting notices.

One example is a possible surge in automated notices of deficiency. The IRS may send these as a way to prevent the expiration of the statutory time limit for tax assessments.

Dirty Dozen Scams 

The term "Dirty Dozen" refers to the worst of the worst tax-related scams. They can increase the number of issued IRS notices, as they can trick taxpayers into filing inaccurate or fraudulent returns.

IRS impersonation is one of the leading types of Dirty Dozen scams. Fake charities are another.

Frequently Asked Questions

What Does an IRS Impersonation Scam Mean? 

An IRS impersonation scam occurs when malicious actors impersonate or pretend to be an IRS agent. They perform these illegal acts through emails, direct messages, text messages, or calls.

They typically use alarming language designed to instill a sense of urgency and panic in their victims.

An example of an IRS impersonation scam is when a scammer makes a threatening phone call. They'll pretend to be an IRS agent and scare the victim by telling them that they will be under arrest or sued if they don't pay a "back tax" debt via wire transfer or a prepaid debit card.

Remember: The IRS will never threaten to arrest or deport taxpayers, nor will they demand immediate payment.

Is It Always Necessary to Hire an IRS Attorney? 

No. You don't always have to hire an IRS attorney for every IRS notice or letter you receive, as many of these are resolvable with "basic" fixes (e.g., updating your bank account info if you get a CP53E notice).

It's advisable, however, to hire an experienced IRS attorney for criminal investigations that involve accusations (e.g., fraud or tax evasion). The same goes for situations involving field audits or audits for significant amounts of unreported income or fraudulent deductions.

Don't Let the Tax Season Intimidate You

While the number of taxpayers who might get IRS notices or letters may increase this 2026 tax season due to factors like new laws, staffing shortages, and scams, you shouldn't feel intimidated every time this season comes.

If you're not confident about doing your own taxes, partner with a qualified tax professional. If you find yourself facing a very complex tax matter, hire an IRS attorney.

Keep yourself in the loop of the latest local and national news, or explore other related reads by checking out the rest of our news platform.

This article was prepared by an independent contributor and helps us continue to deliver quality news and information.