I had to read the report twice to absorb all of the good news from the IRS in its Newswire published October 29, 2026, which is the best report I have read from the IRS in my 20+ years as a tax practitioner.
For fiscal year 2026, the IRS collected the highest tax revenue in history and delivered record high refunds to more people, and faster than ever before.
When discussing dollars in the trillions, a fraction of a percent, such as one-tenth of one percent, is still an astronomical number. For example, one-tenth of one percent of one trillion dollars is $1 billion dollars.
In fiscal year 2026, the IRS collected almost five percent more in taxes than it had the prior year, collecting a record-setting $5.6 trillion dollars. This represents most of the money that supports the U.S. government’s operations.
Significantly, the average tax rate paid by taxpayers declined for all income levels for tax returns filed in 2026 (for tax year 2025). The overall average tax rate fell to 12.6 percent, a decrease of four percent from 2025.
More people filed returns electronically; more people filed returns showing a refund due; the refunds due were higher than before; and 90 percent of the refunds were issued within 21 days!
Security and taxpayer privacy were maintained and improved, and a new online fraud refer system was launched for taxpayers to report suspected tax fraud, scams, tax evasions, and other tax-related illegal activity, here.
Another notable success is the nearly 70 million Trump Accounts open for children, $1,000 for each child born between January 1, 2025 through December 31, 2028. Significantly, additional funds have been added to those accounts by family, friends, the U.S. government, and general donors to almost 40% of the accounts. These contributions represent significant investments in our future generation for a strong financial foundation by the time they reach age 18.
While there are many things to complain about or find fault with, which news media is consistent in highlighting, this IRS report has meaningful positive news for the financial state of our country, and it’s worth noting.
