IRS Points Extension Filers to Online Tools as Paper Processing Slows

Summary

The Internal Revenue Service is steering taxpayers toward its expanding suite of online services on IRS.gov, which now cover many common tax tasks end to end. In a pair of August 2026 reminders, the IRS also urged taxpayers who requested an extension to file their 2025 federal return to do so as soon as possible rather than waiting until the October 15 deadline, noting that IRS Free File remains available to extension filers this summer. Separately, a government report covered by the Journal of Accountancy found that while the 2026 filing season ran normally for most taxpayers, those who filed paper returns or relied on paper refund checks experienced delays tied to a smaller IRS workforce and technology problems. Taken together, the announcements underline a practical shift: digital channels are now the fastest and most reliable route through the IRS system, and paper remains the slow lane.

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Our Take

For cross-border filers, the practical takeaways are straightforward. E-filing sidesteps the paper-processing bottlenecks documented in the report, and direct deposit for any refund avoids the delays that paper checks are now subject to. Extension filers — including US citizens in Canada and Canadian residents with US filing obligations who requested more time — face a real October 15 deadline, and the IRS is explicitly encouraging them to act now rather than wait. Before relying on IRS Free File or other online tools, filers should read the eligibility and scope notes carefully, since the tools do not cover every situation. Those expecting a refund should also confirm that the IRS has current bank account details on file for direct deposit. Where extension, estimated payment, and cross-border credit rules interact, the details matter more than usual, and a conversation with a CPA familiar with both sides of the border is the right next step for anyone uncertain how the pieces fit together.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.