Tax season 2026 brings updated federal requirements, new state mandates, and revised filing procedures. Your software needs to handle all of them.
This checklist covers the essential compliance checks tax professionals should complete before accepting clients this season. Use it to verify your systems are current and configured correctly.
Federal Payroll and Tax System Updates
The IRS released updated withholding tables effective January 1, 2026. Your tax software must reflect these changes to calculate accurate refunds and liabilities.
Key federal updates to verify:
- New IRS withholding tables for 2026
- Updated W-4 processing guidance
- Revised W-2 benefit reporting requirements
- Adjusted benefit limits for retirement and health accounts
- Non-discrimination testing parameters
Higher benefit limits this year make compliance testing more complex. Software that handled 2025 calculations correctly may produce errors with 2026 limits if not properly updated.
Check your software version against the vendor's release notes. Most providers issued compliance patches in late December 2025 or early January 2026. If your system hasn't updated automatically, download the latest version manually.
State-Specific Filing Requirements
State compliance varies significantly. Some states approve specific software versions for filing. Others have implemented new electronic filing mandates.
Texas franchise tax filers: The Texas Comptroller maintains an approved software list for 2026. Approved providers include:
- Advanced Tax Solutions LLC (MyTaxPrepOffice Ver. 17.0)
- CCH Inc. (Prosystem FX Ver. 17.0)
Verify your software appears on the current approved list before filing. Note that amended returns must be submitted on printed forms, not electronically. If your software doesn't automatically print "AMENDED" on forms, add this designation manually.
States with new electronic filing mandates for 2026:
- Georgia
- Idaho
- Iowa
- Louisiana
If you file in these states, confirm your software supports their electronic filing specifications. Paper filing may no longer be accepted for certain return types.
Software Version Verification Checklist
Complete these verification steps before processing any 2026 returns:
Step 1: Check current version number
Open your tax software and locate the version information. This typically appears in the Help menu under "About" or in Settings.
Step 2: Compare against vendor requirements
Visit your software vendor's website and confirm your version number matches the current 2026-compliant release.
Step 3: Review update history
Check that all patches since your last update have been applied. Missing intermediate updates can cause calculation errors.
Step 4: Verify state module updates
State-specific modules often update separately from the core software. Confirm each state you file in has current forms and calculations.
Step 5: Test transmission capability
Run a test transmission to the IRS and relevant state agencies. Verify your EFIN credentials are active and properly linked.
Electronic Filing Infrastructure
E-file requirements continue expanding. The IRS mandates electronic filing for preparers who file more than 10 returns annually. Many states have lower thresholds or universal e-file requirements.
Verify these e-file components:
| Component | Status Check |
|---|---|
| EFIN | Active and linked to software |
| PTIN | Renewed for 2026 |
| State credentials | Current for each filing state |
| Bank products | Configured if offering refund transfers |
| Transmission tests | Passed for federal and state |
If you operate without your own EFIN, confirm your ERO services agreement is current. TIG Tax Pros offers ERO services for preparers who need filing capability without obtaining their own credentials.
Compliance Fee Changes
Several states increased filing fees for 2026. Budget accordingly.
Tennessee: Corporation annual report fees increased from $20 to $300. This significant jump affects clients with Tennessee business filings.
Other states have implemented or increased:
- Mandatory e-file fees
- Late filing penalties
- Registration renewal costs
Update your fee schedules to reflect these changes. Clients may need advance notice of increased costs.
Security and Data Protection Configuration
Tax software security settings require annual review. The IRS Security Summit guidelines specify minimum protections for tax professional systems.
Required security configurations:
- Multi-factor authentication enabled
- Automatic session timeout (15 minutes or less)
- Encrypted data storage
- Secure transmission protocols
- Access logging activated
Review your software's security settings against current identity theft protection standards. Data breaches result in IRS penalties, reputational damage, and potential practice suspension.
Testing Procedures Before Go-Live
Run these tests before processing actual client returns:
Calculation verification:
- Enter a sample return with common deductions
- Calculate manually or with a secondary source
- Compare results
- Document any discrepancies
Form generation:
- Generate each form type you commonly file
- Verify all fields populate correctly
- Check for formatting errors
- Confirm barcode generation (where applicable)
Transmission testing:
- Submit test return to IRS
- Submit test returns to each state you file
- Verify acknowledgment receipt
- Confirm rejection handling works properly
Bank product testing (if applicable):
- Process a test refund transfer setup
- Verify bank routing information
- Confirm fee calculations
- Test disbursement options
Software Feature Gaps
Your current software may lack features needed for 2026 compliance. Common gaps include:
- Cryptocurrency transaction reporting
- New energy credit calculations
- Updated depreciation schedules
- State-specific pass-through entity tax elections
If your software doesn't support forms or calculations you need, consider upgrading. TIG Tax Pros offers software options configured for current compliance requirements.
Deadline Reference
Key dates for the 2026 filing season:
| Deadline | Date |
|---|---|
| IRS begins accepting returns | Late January 2026 |
| Individual return deadline | April 15, 2026 |
| Extension deadline | October 15, 2026 |
| Estimated tax Q1 | April 15, 2026 |
| Estimated tax Q2 | June 15, 2026 |
State deadlines vary. Verify each state's filing calendar for returns you prepare.
Quick Compliance Checklist Summary
Use this condensed checklist for rapid verification:
- Software updated to 2026-compliant version
- Federal withholding tables current
- State modules updated for each filing jurisdiction
- EFIN active and linked
- PTIN renewed
- State credentials current
- Security settings configured per IRS guidelines
- Test transmissions completed
- Fee schedules updated
- Staff trained on 2026 changes
Complete all items before accepting 2026 returns. Missing any element risks rejected filings, calculation errors, or compliance penalties.
Next Steps
If your software fails any compliance check:
- Contact your vendor for immediate updates
- Delay client intake until systems are verified
- Consider alternative software if updates are unavailable
- Document all verification steps for your records
Tax software readiness directly affects filing accuracy and client satisfaction. Complete this compliance check now. Address gaps before workload increases.