St. Joseph News-Press, Mo.
(TNS)
WASHINGTON (News-Press NOW) — The Internal Revenue Service reported record tax collections and increased refunds for American taxpayers in fiscal year 2026, while expanding digital services and strengthening efforts to prevent tax fraud.
According to an Oct. 29 report from the agency, the IRS collected $5.6 trillion in taxes during the fiscal year, an increase of nearly 5% from 2025. The agency also reported higher refunds and lower average federal income tax rates following the passage of President Donald Trump’s Working Families Tax Cuts legislation.
Based on individual income tax returns filed through mid-July, the overall average federal income tax rate for tax year 2025 fell to 12.6%, a 4% decrease from the previous year. The IRS reported declines across all income categories.
Taxpayers also received larger refunds during the 2026 filing season. The total dollar amount of refunds claimed increased 17% from the previous year, while the average refund rose 11%. The total amount of refunds distributed increased by more than 20%, according to the agency.
About 90% of taxpayers who filed electronically received their refunds within 21 days.
IRS CEO Frank Bisignano attributed the results in part to the administration’s tax legislation and efforts to modernize the agency.
“With our dedicated workforce, we delivered a successful tax filing season and continue to transform the IRS into a Digital-First agency that provides the best possible experience for taxpayers, improves collections, and safeguards privacy,” Bisignano said.
Digital services see increased use
The IRS reported significant growth in the use of its online services during 2026, as more taxpayers turned to digital platforms to manage their accounts, track refunds and make payments.
The agency’s website recorded more than 954 million visits, while taxpayers used its “Where’s My Refund?” tool nearly 469 million times.
Individual IRS online accounts grew to approximately 37.6 million users, a 34% increase from the previous year. Those accounts recorded 224 million logins, while payments made through the system rose 57% to more than $133.6 billion.
The agency also launched a new mobile application, allowing taxpayers to securely access account information and other services from their phones. More than 140,000 users downloaded the app during its first five days.
Direct deposit refunds increased by 12% compared with 2025, reflecting the agency’s continued move away from paper checks.
The IRS also expanded its efforts to digitize paper tax returns, reporting that more than 90% of Form 940 returns and more than 80% of Form 941 returns were processed electronically.
Fraud prevention and taxpayer protection
The IRS reported protecting approximately $38 billion in tax revenue from identity theft-related refund fraud during fiscal year 2026.
The agency credited improved fraud detection systems and its partnership with state tax agencies and private-sector organizations through the Security Summit initiative.
Additional measures included expanded public education campaigns to help individuals, businesses and tax professionals identify scams and protect sensitive financial information.
The IRS also introduced a new online fraud reporting option, allowing taxpayers to confidentially report suspected tax evasion, scams and other tax-related illegal activity.
Reports can be submitted through the agency’s website at IRS.gov/SubmitATip.
New investment accounts for children
The IRS also highlighted the implementation of Trump Accounts, a new type of tax-advantaged investment account for children established under the Working Families Tax Cuts legislation.
According to the agency, nearly 70 million accounts have been established for eligible children under age 18, with approximately 27 million receiving contributions from families, friends, donors or the federal government.
Children born between Jan. 1, 2025, and Dec. 31, 2028, may qualify for a one-time $1,000 federal contribution to their accounts.
The program is intended to provide children with a foundation for long-term savings and investment.
The IRS said its efforts in 2026 reflect a broader strategy to improve taxpayer services, modernize agency operations and strengthen the collection and protection of federal revenue.
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© 2026 the St. Joseph News-Press (St. Joseph, Mo.). Visit www.newspressnow.com. Distributed by Tribune Content Agency LLC.
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Tags: Income Taxes, IRS, tax refunds, tax returns, tax revenue, Taxes
