📅 Deadline Alert: For tax year 2026 (returns filed in 2027), most individuals—including immigrants who are U.S. tax residents under the Green Card Test or Substantial Presence Test—must file their federal return and pay any balance due by April 15, 2027. Missing the deadline can trigger late-filing penalties, late-payment penalties, and interest, and it can also delay tax refunds.
As of February 12, 2026, many families are hearing that refunds could rise under the One Big, Beautiful Bill (OBBB). That can be true. It also creates a trap: larger expected refunds often lead people to file quickly, even when forms are missing. The IRS’s automated error and document-matching systems can still freeze or slow refunds, and they can generate IRS audits or “audit-like” notices.
A refund is simply an overpayment of tax, often from wage withholding or estimated payments. A bigger refund does not always mean your total tax went down. It can also mean withholding went up, credits changed, or income timing shifted.
This guide explains what may push refunds higher for tax year 2026, why refund timing can slip, and what to do if an IRS letter arrives. For core residency rules, start with IRS Publication 519 (U.S. Tax Guide for Aliens) at irs.gov/pub/irs-pdf/p519.pdf.
Deadline summary (tax year 2026, filed in 2027)
| Tax event | Who it affects | Deadline | Extension available | What happens if you miss it |
|---|---|---|---|---|
| File Form 1040 / 1040-NR and pay tax due | Most individuals | April 15, 2027 | Yes, file Form 4868 to extend filing to October 15, 2027 | Late-filing penalty, late-payment penalty, interest; refund delays |
| Estimated tax payments (quarterly) | Self-employed, investors, some visa holders without withholding | Apr 15 / Jun 15 / Sep 15, 2026; Jan 15, 2027 | No (payment due dates do not extend) | Underpayment penalty risk |
| FBAR (FinCEN 114) reporting foreign accounts | U.S. persons with foreign accounts over threshold | April 15, 2027 (auto-extends to Oct 15, 2027) | Automatic to Oct 15 | Civil penalties for non-filing |
Disaster relief can change deadlines. The IRS posts official extensions by location at irs.gov/newsroom.
Expected refund increases for tax year 2026 (filed in 2027)
OBBB-related changes may increase refunds for some households because the law can change both (1) the final tax calculation and (2) how much is prepaid through withholding. Retroactive features can also create gaps between what employers withheld early in the year and what the final rules allow on the return.
Refund timing still follows old rules. Most error-free e-filed returns with direct deposit are issued faster than paper returns. Refunds slow down when the IRS must verify identity, manually review entries, or reconcile missing forms. Common delay points include:
- Missing W-2s or 1099s (or entering different amounts than the IRS received)
- Claiming credits without required schedules
- Paper filing, math errors, or inconsistent names/SSNs/ITINs
Distribution also matters. Some middle-income and upper-income filers may see larger changes than lower-income filers. That does not mean every household will. Your refund depends on filing status, withholding, credits, and deductions.
Key OBBB drivers and their real-world filing impact
Several OBBB provisions can move refunds, but eligibility and documentation determine whether the IRS accepts the return as filed.
- Higher standard deduction: When the standard deduction rises, many filers stay with it instead of itemizing. That can lower taxable income, but it does not guarantee a larger refund. Withholding and credits still drive the final “refund vs. amount owed” result.
- SALT deduction mechanics: If state and local tax deductions become more available for some households, the effect tends to be larger for people with higher property taxes and state income taxes. Phase-outs can reduce the benefit at higher income levels.
- No tax on overtime or tips (documentation matters): This is where refund delays can show up. Keep paystubs and year-end wage statements. Make sure what you report matches what your employer reports. Mismatches are exactly what IRS matching programs flag.
- Senior-related deductions/adjustments: If you or a parent qualifies, confirm the amounts on year-end statements. Enter them correctly on the return.
- State tax impact: Federal changes may not carry into state returns. Your state may still tax items that the federal return excludes.
Filing season timing and why “file early” can backfire
The IRS usually opens e-filing in late January. Filing early can help fraud prevention, but only if you have complete forms. Many immigrants receive additional documents later, such as:
- Brokerage Forms 1099 (often corrected)
- Partnership K-1s
- Foreign bank or investment annual statements
An extension (Form 4868) gives more time to file, not more time to pay. Pay what you reasonably expect by the April deadline to reduce penalties and interest. Official filing guidance and forms are at irs.gov/forms-pubs.
IRS audits, notices, and the mismatch problem (especially for immigrants)
Most returns are not examined, but review risk is real. The IRS matches what you file against third-party reports: W-2, 1099, 1098, and others. A mismatch can trigger a notice asking for proof, or it can adjust the return.
Patterns that often cause refund holds or IRS letters include:
- Omitted income (a missing 1099 is common)
- Missing schedules (for self-employment, credits, or investments)
- Unusually large deductions relative to income
- Paper return errors and unsigned returns
Extensions do not raise audit risk. They do increase risk if taxpayers treat them as “extra time to pay.”
Foreign reporting is another frequent pitfall. If you become a U.S. tax resident, you may have worldwide reporting duties.
| Filing status (living in U.S.) | FBAR threshold (FinCEN 114) | Form 8938 threshold (end of year) | Form 8938 threshold (any time) |
|---|---|---|---|
| Single / Married filing separately | $10,000 aggregate | $50,000 | $75,000 |
| Married filing jointly | $10,000 aggregate | $100,000 | $150,000 |
Form 8938 is a FATCA form filed with the tax return. FBAR is filed separately. See the IRS international portal at irs.gov/individuals/international-taxpayers.
⚠️ Warning: Do not “guess” numbers to speed up a refund. If the IRS cannot match income or support a deduction, it can freeze the refund and later assess tax, penalties, and interest.
If you get an IRS letter and records are missing
Start with the basics:
- Read the notice and note the response deadline.
- Confirm the tax year and the issue being questioned.
- Respond with organized documents, not a pile of receipts.
If you are missing records, reconstruct them with bank and credit card statements, employer payroll portals, invoices, mileage logs, calendars, and email confirmations. Reasonable explanations can help clarify facts, but unsupported claims are often reduced or disallowed.
Bring in a CPA, EA, or tax attorney when the amounts are large, foreign reporting is involved, or you are unsure how to respond. Representation can improve how documents are presented and how issues are negotiated.
Who may benefit most—and how to keep refunds moving
Refund increases tied to OBBB are more likely to be noticed by middle- and upper-income households and by workers with overtime or tips. The bigger the numbers and the more complex the return, the more filing precision matters.
Before you file for tax year 2026:
- Reconcile every W-2 and 1099 to what you enter on the return.
- Confirm your residency status under Publication 519 rules.
- Keep a single folder for wage statements, paystubs, and foreign account year-end summaries.
- E-file and choose direct deposit when possible.
- If you need time, file Form 4868 and pay by April 15, 2027.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.
