The IRS tax-filing season opens Monday, Jan. 26, 2026, and this year, there are some important changes to note.

For starters, Direct File is gone -- but the Free File program remains.

Direct File was the e-filing program that allowed "eligible taxpayers to file their federal individual income tax return online directly with the IRS at no direct cost to the user," according to the Treasury Department's October 2025 report to Congress, "Report on the Replacement of Direct File" (tinyurl.com/56bubek8). Launched as a pilot program in 2023, Direct File was available to taxpayers in 25 states for tax year 2024, and nearly 300,000 returns were filed.

However, that was not enough. Direct File "had low overall participation and relatively high costs and burdens on the federal government, compared to other free filing options," reported the Treasury Department, citing a cost of at least $41 million for tax year 2024.

Meanwhile, the Free File e-filing program is very much alive. Free File debuted in 2003 and has eight private-sector partners offering guided tax software products for tax year 2025. To qualify, you must have an adjusted gross income (AGI) of $89,000 or less (tinyurl.com/mpt5uder). Note, however, that each of the tax partners also sets its own eligibility requirements.

According to the Internal Revenue Service Data Book 2024, released in May 2025 (tinyurl.com/m4v5933k), 3.1 million taxpayers used the Free File program for fiscal year 2024.

If you are above the $89,000 AGI mark, you can use Free File Fillable Forms -- electronic versions of IRS paper forms. The forms "are ideal for individuals who are comfortable preparing their own taxes using IRS instructions and publications," the IRS stated (tinyurl.com/4u3ak822).

The IRS expects to get around 164 million individual income tax returns in 2026, with most taxpayers filing electronically (tinyurl.com/fuubsbd7). The filing deadline for 2025 tax-year returns is April 15, 2026.

There is also a new schedule this year: Schedule 1-A (tinyurl.com/3ktpwact). This form deals with recently enacted tax deductions: no taxes on tips, overtime or car loan interest, and an enhanced deduction for seniors.

The IRS also recommends taxpayers visit the IRS.gov website for more information if they receive either of the following forms: 1099-K or 1099-DA.

Form 1099-DA is used to report digital asset proceeds from broker transactions. You can find the instructions at the IRS webpage "About Form 1099-DA" (tinyurl.com/epyh4ytf).

Form 1099-K is used for "payments you received for goods or services during the year" involving payment apps or online marketplaces (aka third party settlement organizations), or payments through credit, debit or gift cards. The IRS webpage "Understanding Your Form 1099-K" provides more details (tinyurl.com/bdfzzbsr).

If you need assistance in preparing your taxes, the IRS offers a number of resources:

-- A directory of federal tax preparers with credentials can be accessed through the IRS webpage "Need someone to prepare your tax return?" (tinyurl.com/4us2d4yj);

-- The IRS offers taxpayer assistance at its "Contact your local IRS Office" webpage (tinyurl.com/45wv4apx);

-- IRS-certified volunteers can be found at the "Free tax preparation for qualifying taxpayers" webpage (tinyurl.com/5n973dzb).

If you file and expect a refund, the "Where's My Refund?" IRS webpage will have details of your status generally around 24 hours after e-filing or after four weeks if you file a paper return (tinyurl.com/mw7pc48z). Note that the IRS is phasing out paper tax-refund checks (due to the 2025 Presidential Executive Order 14247, "Modernizing Payments To and From America's Bank Account" -- tinyurl.com/7zcxfa5h) and encourages you to establish a bank account (if you don't have one) if you are expecting a tax refund.

On another tax-related matter, the Federal Trade Commission recently released a warning about phone scams that claim you owe back taxes. The scammers say they are from an official-sounding agency and claim that you haven't paid your taxes. They offer to connect you with a "tax resolution officer" and "help you apply for an 'IRS liability reduction program'" while seeking to charge you fees or steal your personal information (tinyurl.com/sf6bf3jh).

The FTC reminds taxpayers that the IRS's "first contact with you will always come by mail, not by phone."

Find out more about efforts to combat fraud at the IRS webpage "Tax Scams" (tinyurl.com/3np2swtf).

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When an investment "problem" surfaces, wouldn't it be nice to speak with someone about it? When a regulator needs perspective on investor behavior, wouldn't engaging with investors help?

Both interests are being served through the U.S. Securities and Exchange Commission's (SEC) Office of the Investor Advocate (OIAD), created in 2014 under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (tinyurl.com/2djam3xx).

The OIAD "is statutorily mandated to assist retail investors, identify problems that investors may have, analyze the potential impacts on investors of rules or regulations, and make proposals to the [Securities and Exchange] Commission (SEC) to promote the interests of investors."

To accomplish those goals, OIAD benefits from the "unique perspectives" of individual investors. "Among those whom OIAD especially seeks to hear from are older investors, new investors, veterans, military, and military spouses, affinity-connected investors, investors from rural and non-metro areas, historically underserved and/or Native American communities, crypto and non-traditional finance investors, investors with disabilities, investors with innovative approaches to investing, and investors with varying levels of exposure to capital markets," states the Fiscal Year 2025 Office of the Investor Advocate Report on Activities (tinyurl.com/mrymb77a).

The report also points out that the OIAD partners with other divisions and agencies "to hear directly from investors regarding the impact that potential rules and regulations have on investors may have with products and services." The goal is "to further institutionalize stakeholder (i.e., investor) input into all stages of the [SEC's] operations."

You can contact the OIAD at 202-551-3302 (tinyurl.com/3dkefyua).

The Investor Advocate also appoints the SEC Ombuds (www.sec.gov/ombuds). The SEC Ombuds, formally known as ombudsman, serves as "an independent, neutral office created to assist retail investors and other members of the public in resolving concerns, questions and complaints about the SEC, self-regulatory organizations (SROs) such as FINRA and the exchanges such as the NYSE that are subject to SEC oversight."

In fiscal 2025, Ombuds "received and processed" nearly 2,500 matters, including requests for "assistance and information regarding fraud," "investor account matters" and questions or complaints about investment products, according to the annual OIAD report.

The Ombuds is not authorized to represent an investor; instead, the Ombuds refers investor inquiries as follows:

-- If there are credible allegations of securities violations, the information is referred to the SEC's Division of Examinations and Enforcement. The public can submit suspected violations at the SEC webpage "Report Possible Securities Law Violations" -- tinyurl.com/m5jz9t72.

-- If there are reports of fraudsters "impersonating the SEC or misappropriating the SEC's seal," the SEC's Office of the General Counsel and Office of Inspector General are notified. Reports can be filed at the SEC OIG Web Submission page -- tinyurl.com/53a6znjz.

-- If an investor seeks help with personal investments or an investment account, he or she is referred to the SEC's Office of Investor Education and Assistance (OIEA). OIEA has a stake in financial literacy education, including maintaining an educational website called Investor.gov for individual investors. The SEC webpage "Report a Problem with an Investment Account or Financial Professional" can be used by investors to file a complaint (tinyurl.com/2f7yh2vk).

What is the Ombuds' goal? "In all cases, we endeavor to make sure the investor receives a clear response from the SEC regarding their concerns and that such concerns are elevated to the attention of the Investor Advocate and other interested parties within the [SEC]." The Ombuds reports to the Investor Advocate, who in turn reports to the chairman of the SEC.

That's a very valuable service. If your investment issue escalates to a lawsuit or arbitration, however, you'll need to retain a lawyer. The Ombuds won't "advocate on behalf of any individual."

What can you expect? The Ombuds team "will listen to your concerns, review the information you provide, and conduct tailored research to identify appropriate procedures, options, and resources available to you."

That's a very good start.

You can contact the Ombuds using the Ombudsman Matter Management System at omms.sec.gov. You also can call (toll-free) 877-732-2001, or write to Ombudsman@sec.gov.

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What happens if you receive an inheritance you did not expect, especially a large inheritance?

When someone becomes wealthy abruptly, they could suffer from "sudden wealth syndrome," a term used by Dr. Stephen Goldbart, a psychologist and co-founder of the Money, Meaning & Choices Institute, to describe the challenges and struggles people face when they instantly become wealthy (tinyurl.com/4yvj2sxc).

That large inheritance could trigger changes in a person's state of mind. Dr. Claudia M. Elsig, the founder of the private CALDA Clinic in Switzerland, lists potential changes in her blog "Sudden Wealth Syndrome: The Impact of Money on Mental Health" (tinyurl.com/5xrf8fha):

-- Identity crisis: A person who unexpectedly becomes wealthy can "feel unclear about the role they serve in the world and what their next steps should be."

-- Financial imposter syndrome: A person "finds it hard to accept that they can now buy things they couldn't afford."

-- Guilt and anxiety: "Some can feel undeserving of their windfall or guilty if the money comes at the expense of others." (Example: Unequal shares of an inheritance.)

-- Fear and paranoia: "A person might feel suspicious of friends, family and financial advisers or quickly fear losing their newly acquired fortune."

-- Destructive behaviors: "Some wealth adopters proudly wear their fortune like a medal and spend it frivolously. They feel powerful and love the freedom money brings."

-- The relationship curse: "Most people underestimate how sudden wealth will impact them individually, but even more so how it will affect relationships with friends and family."

None of these states is desirable. The question is whether someone can avoid them. Can someone anticipate something that is unexpected? Is just having an awareness of these possibilities enough? Or, is there a way to avoid sudden wealth syndrome, even if you unexpectedly inherit wealth?

If experiencing the syndrome, there is some guidance from "Sudden Wealth: Avoiding the Twelve Deadly Mistakes," a white paper issued by TGS Financial Advisors (tinyurl.com/3zs89ey4):

-- "Establish a 'decision-free zone' for a specific time period, during which you will consider your options, seek advice, and evaluate your emotional reactions to your new wealth."

-- "Make explicit and deliberate choices between competing priorities." One example: "Is it more important to live in a larger home, or retire at a younger age?"

-- "Establish an amount you will allow yourself to spend without guilt, and spend it." The white paper suggests a figure of 5% of after-tax new wealth as a starting point.

-- Make sure you do reviews of your financial situation. "Spending money is easy. Protecting, accumulating, and growing capital is hard."

-- "Hire smart advisers." That makes sense. What don't you want to do? "Do not learn by making costly mistakes yourself, with your own money." Instead, "obtain guidance from experts who have seen those mistakes before, and can help you to avoid them."

Food for thought ...

One more point: In my world of working with high-net-worth families, I can share that even if an inheritance of a large dollar amount is unexpected (amounts are normally not shared), that does not necessarily lead to sudden wealth syndrome.

The reason is pretty straightforward: Families that involve future inheritors in financial discussions they have with their investment counsel help avoid this type of syndrome.

If you are the future benefactor, remember that you always have the option of educating potential inheritors well before an inheritance arrives. It's not about the dollar amount or even the possibility of an inheritance that is important. What's important is the opportunity to share knowledge of risk and reward, and to role-model prudent decision-making. That's best accomplished with a family approach to money management that prepares a child or grandchild to see his or her own "future self" as a prudent decision-maker.

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