The 2026 tax season presents unprecedented challenges for tax professionals. With over 13 million returns suspended during the 2025 filing season and significant IRS staffing reductions, processing delays have become the norm rather than the exception. Tax preparers need practical solutions to maintain client satisfaction and keep their businesses running smoothly.
Understanding the Current Processing Environment
The IRS has eliminated paper refund checks entirely as of September 30, 2025. All refunds now process electronically, making digital filing and direct deposit essential rather than optional. This shift, combined with reduced staffing across IRS departments, creates a perfect storm for processing delays.
The Taxpayer Advocate Service lost 25% of its workforce in 2025, while the Appeals office saw a 28% reduction in staff. These cuts directly impact processing times and make it nearly impossible for taxpayers to reach IRS personnel when issues arise.
Electronic filing remains the fastest option, with refunds typically issued within 21 days of acceptance when paired with direct deposit. Paper returns face significant delays due to manual data entry and verification requirements.
The ERO Service Solution
Electronic Return Originator (ERO) services provide tax preparers without an Electronic Filing Identification Number (EFIN) access to electronic filing capabilities. These services act as intermediaries, allowing small practices to offer the same fast processing times as larger firms with their own EFIN.
ERO services handle the technical aspects of electronic transmission, leaving tax preparers free to focus on client service and business growth. This arrangement particularly benefits new practitioners who haven't yet qualified for their own EFIN or seasonal preparers who don't file enough returns to justify the EFIN application process.
Key benefits include immediate access to electronic filing, reduced administrative overhead, and the ability to offer clients faster refund processing without significant upfront investment in technology infrastructure.
Selecting the Right ERO Partner
Not all ERO services operate equally. Look for providers that offer transparent pricing, reliable transmission schedules, and comprehensive support during peak filing periods. The best ERO partners provide multiple daily transmission windows, ensuring returns reach the IRS quickly regardless of when they're submitted.
Verify that your chosen ERO service maintains proper IRS authorization and carries adequate professional liability coverage. Request references from other tax preparers and review their track record for handling technical issues and IRS communications.
Consider services that bundle additional features like tax software, client management tools, or marketing support. These integrated solutions can streamline operations and reduce the number of vendor relationships you need to manage.
Client Communication Strategies
Transparent communication prevents client frustration and builds trust during uncertain processing times. Establish clear expectations from the initial consultation through refund receipt.
Explain the current IRS processing environment during intake appointments. Most clients don't understand the difference between return acceptance and refund processing. Use simple language to describe how returns move through IRS systems and why delays occur.
Provide written timelines that reflect realistic processing expectations rather than best-case scenarios. Include information about factors that commonly trigger additional review, such as claiming certain tax credits or filing amendments.
Set up automated status updates through your software or ERO service. Regular communication reduces phone calls and demonstrates proactive client service even when refunds experience delays.
Managing Expectations Without an EFIN
Tax preparers without their own EFIN can still provide excellent service by partnering with reliable ERO providers. Focus on the services you control rather than dwelling on limitations.
Emphasize accuracy and thoroughness in return preparation. While you may not control transmission timing, you can ensure returns are error-free and complete before submission. This reduces the likelihood of processing delays caused by IRS inquiries or corrections.
Offer value-added services that differentiate your practice. Tax planning, bookkeeping support, or year-round consultation services create client relationships that extend beyond filing season and reduce dependence on refund timing for client satisfaction.
Build relationships with multiple ERO services to ensure backup options during peak periods. Having alternative transmission channels prevents service disruptions that could delay client returns.
Practical Implementation Steps
Start by evaluating current client communication practices. Review last year's client interactions to identify common questions and concerns about refund timing. Use this information to develop proactive communication templates and FAQ documents.
Research ERO service options early in the season. Compare pricing structures, transmission schedules, and support offerings. Don't wait until peak filing period to establish new vendor relationships.
Create a refund tracking system that works with your chosen ERO service. Many providers offer client portals or status update systems. Integrate these tools into your standard client service procedures.
Develop contingency plans for processing delays. Know how to handle situations where refunds take longer than expected or returns require additional IRS review. Having established procedures reduces stress for both staff and clients when delays occur.
Technology Integration Solutions
Modern ERO services integrate seamlessly with popular tax software platforms. This integration eliminates manual data entry and reduces transmission errors that can cause processing delays.
Choose ERO partners that support your existing software rather than forcing platform changes. Switching tax software mid-season creates unnecessary complications and learning curves for staff.
Implement document management systems that work with your ERO service. Electronic document storage and retrieval become essential when the IRS requests additional information or documentation for flagged returns.
Consider cloud-based solutions that allow secure access from multiple locations. This flexibility becomes valuable when working with clients remotely or managing returns from different office locations.
Quality Control Measures
Establish review procedures that catch common errors before transmission. Simple mistakes like incorrect bank account numbers or missing signatures cause processing delays that ERO services cannot prevent.
Train staff to verify direct deposit information with clients before filing. Bank account errors are among the most common causes of refund delays and require manual intervention to resolve.
Implement checklists for different return types. Complex returns with multiple schedules or forms require additional attention to ensure all components transmit correctly through ERO systems.
Document all client interactions and return details. Complete records become essential if the IRS contacts your office about specific returns during processing reviews.
Building Long-Term Client Relationships
Focus on services that create value beyond refund processing speed. Tax planning, quarterly estimated payment calculations, and business consulting services build client loyalty that transcends filing season challenges.
Develop educational content that helps clients understand tax planning opportunities throughout the year. Regular communication about tax law changes or planning strategies keeps your services relevant during off-peak periods.
Create referral programs that reward clients for bringing new business. Strong referral networks reduce dependence on seasonal marketing and build sustainable practice growth.
Consider offering bookkeeping or payroll services that generate year-round revenue. These services create multiple client touchpoints and reduce the pressure to compete solely on refund processing speed.
Preparing for Peak Season Challenges
Establish relationships with backup ERO services before filing season begins. Having multiple transmission options prevents service disruptions during peak periods when technical issues are most likely to occur.
Create detailed procedures for handling IRS notices and correspondence. Staff should know exactly how to respond when clients receive processing notices or refund delay notifications.
Develop realistic capacity planning that accounts for current processing delays. If refunds take longer to process, clients may contact your office more frequently seeking updates. Plan staffing levels accordingly.
Stock up on necessary supplies and ensure all software licensing remains current. Technical problems during peak season cost valuable time and create client service issues that damage your reputation.
The 2026 tax season requires proactive planning and realistic expectations. ERO services provide small practices with access to electronic filing capabilities, but success depends on choosing the right partners and managing client relationships effectively. Focus on accuracy, communication, and value-added services to maintain client satisfaction regardless of IRS processing delays.