The IRS opened the 2026 tax filing season on January 26, expecting roughly 164 million individual returns, but early processing numbers suggest refund delays could hit harder than usual this year. According to the latest IRS data, returns processed fell 12.3% compared with the same period last year, even as the average refund climbed 10.9% to $2,290 from $2,065. The IRS received 22.351 million returns through February 6, a 5.2% drop from the 23.589 million received by the same point in 2025, but processing output declined more significantly. Six weeks is roughly triple the standard 21-day electronic refund window, creating substantial delays for filers who rely on refunds to cover spring rent, utilities, or debt payments. The fix is straightforward: enter accurate routing and account numbers when filing, and double-check them before submission. Taxpayers without traditional bank accounts can explore low-cost options through the FDIC's GetBanked initiative or similar programs offered by local credit unions.
The Internal Revenue Service has expanded its 2025 Dirty Dozen list of tax scams to include 'ghost' tax return preparers who promise huge refunds but disappear without signing returns or providing traceable identification. According to the IRS, these paid preparers charge fees based on refund size rather than return complexity, refuse to sign finished products, and insist on cash payments without receipts. The scheme shifts full legal liability onto taxpayers while preparers pocket fees and walk away, exploiting gaps in the IRS directory system where legitimate preparers without additional credentials don't appear in search results. Taxpayers who unknowingly file fraudulent returns typically discover the problem only when an IRS letter or audit arrives months later, leaving them responsible for fabricated deductions or credits they never authorized. Filing early acts as a defensive move against identity-based refund fraud - once a legitimate return is on file, a criminal attempting to file first with the same Social Security number is more likely to be blocked.
The Income Tax Department has issued a stern warning to taxpayers about a surge in refund-related fraud attempts, according to reports from The Times of India. The department cautioned that scammers are exploiting delays and heightened expectations around tax refunds through fake emails, phone calls and SMS messages. In a message posted on X, the department urged taxpayers not to share one-time passwords (OTPs), bank details or personal information in response to unsolicited communications claiming to be from tax authorities. The warning comes as tax season presents a particularly vulnerable period when businesses are distracted and processing large volumes of financial transactions. Setting up direct deposit before filing removes the single largest controllable delay in the refund process and aligns with the IRS's broader push toward digital payments.
The W-2 scam represents a particularly devastating threat during tax season, targeting small businesses through sophisticated social engineering attacks. According to security experts, cybercriminals spoof email addresses or use nearly identical domain names that are just one letter different from legitimate company emails. The scam involves an urgent email from someone claiming to be a CEO or senior executive, requesting copies of all employee W-2 forms for an accountant meeting. The message appears legitimate because it's sent during tax season, requests reasonable documents that get shared internally, and includes natural urgency about busy schedules. Employees want to help, especially when they believe the boss is asking, making this one of the most successful social engineering attacks targeting businesses each year. For businesses, the key protection is establishing a 'No W-2s via Email' rule - making it absolute policy that sensitive payroll documents never leave the organization via email attachment. Verify every sensitive request through a second channel - even if it appears to come from someone you know.
Taxpayers receiving fraudulent messages can report them at webmanager@incometax.gov.in and copy to incident@cert-in.org.in, as reported by The Times of India. For assistance, taxpayers may contact the helpline numbers: 1800 103 0025 or 080-46122000. The department also advised that individuals who suspect unauthorised access to their e-filing accounts should immediately report the matter to police or cybercrime authorities through cybercrime.gov.in. For businesses, the key protection is establishing a 'No W-2s via Email' rule - making it absolute policy that sensitive payroll documents never leave the organization via email attachment. Verify every sensitive request through a second channel - even if it appears to come from someone you know. Implement multi-factor authentication on payroll systems to provide the last line of defense against phishing attacks. The IRS encourages taxpayers to verify tax information directly by logging in to their account at www.IRS.gov or by calling the IRS at 800-829-1040, and warns that federal agencies never request payment via wire transfer, cryptocurrency, or gift card.