The IRS Knows Before You Do: 7 Tax Surprises

that way anymore.By the time many people realize there’s an issue with their 2026 tax return, the IRS already knows. The notice is printed. The clock is running. And penalties may already be accruing.

This is the quiet shift happening right now. Automation, expanded data matching, and new reporting rules mean the IRS often sees problems before taxpayers do.

And for many filers, 2026 is shaping up to be full of surprises.

If you want to avoid panic letters, frozen refunds, or aggressive collection actions, understanding what’s coming is no longer optional.

If you want to prevent an IRS notice before it starts, call (678) 717-9818 or email [email protected] to get Steve Perry, EA on your side now.

Surprise 1: The IRS Has More Third-Party Data Than Ever

Banks, payment platforms, employers, brokers, and marketplaces are sending more detailed information directly to the IRS. This includes income many taxpayers don’t consider taxable or don’t realize is being reported.

If your return doesn’t match what the IRS already has on file, the system flags it automatically. No audit required. No human review needed.

This is how CP2000 notices are generated, and they are increasing in volume every year.

Surprise 2: Refund Delays Are Becoming the Norm

Refund delays are no longer just about identity theft or missing forms. Returns are now routinely held for verification, data mismatches, and automated compliance checks.

Many taxpayers don’t find out there’s a problem until weeks or months later, when a letter arrives asking for documentation, they no longer have readily available.

By then, frustration has already set in.

Surprise 3: Credits Are Under Heavier Scrutiny

Credits remain one of the most common triggers for IRS correspondence. Education credits, family related credits, and other refundable or partially refundable credits are being cross checked more aggressively.

Even legitimate claims can result in delayed processing or requests for proof.

The mistake most taxpayers make is assuming silence means approval.

Surprise 4: “I Fixed It Last Year” Doesn’t Carry Forward

Many people assume that once an issue is resolved, it’s gone for good. Unfortunately, IRS systems don’t always work that cleanly.

A prior year adjustment, balance due, or unresolved discrepancy can surface again, especially when returns are processed in bulk.

This often catches taxpayers off guard because they believe the matter was already handled.

Surprise 5: Self Employed Filers Are Getting Extra Attention

Self-employed income continues to receive increased focus due to underreporting trends identified by the IRS.

This does not mean audits are exploding. It does mean notices, questions, and follow ups are becoming more common, especially when income and expenses don’t align cleanly year after year.

Many business owners don’t realize there’s an issue until the IRS asks for clarification.

Surprise 6: Penalties Add Up Faster Than Expected

Interest compounds daily. Penalties stack. What starts as a manageable issue can quietly grow into something far more expensive if ignored or misunderstood.

One of the costliest mistakes taxpayers make is waiting until a problem feels urgent before acting.

By then, options are severely restricted.

Surprise 7: The Letter Comes Before the Explanation

This is perhaps the most unsettling change.The IRS sends a letter stating what it believes is wrong written in legalese looking much like a demand letter.

Taxpayers are left to figure out what happened, what it means, and how to respond strategically, all while deadlines tick away.

This is where mistakes are made.

Why This Matters Now

Most IRS problems are not caused by fraud or intentional wrongdoing. They’re caused by mismatches, misunderstandings, or timing issues.

But the IRS doesn’t view them emotionally. It views them procedurally.

That’s why having a professional who understands how the IRS thinks, processes returns, and escalates cases matters more than ever.

How Steve Perry, EA Helps

Steve Perry, EA, works with taxpayers who receive IRS letters, face unexpected balances, or want to prevent problems before they start.

He understands how IRS systems flag returns, how notices are generated, and how to respond strategically rather than react emotionally.

Whether you’re dealing with a letter now or want to avoid one altogether, having an enrolled agent who knows the process can make the difference between stress and resolution.

To speak directly with Steve Perry, EA, call (678) 717-9818 or email [email protected].

Message Steve directly on LinkedIn: www.linkedin.com/in/steveperrybtm

The Bottom Line

The IRS doesn’t wait for confusion to clear itself up. It moves forward based on the data it has.

The smartest move taxpayers can make heading into 2026 is understanding what the IRS already knows, and making sure their return tells the same story.

If you’re unsure where you stand, now is the time to find out before the letter arrives.