After 32 years of IRS work — and more than $100 million in resolved tax debt — I've seen just about every version of the problem you're dealing with. I'm Darrin Mish, a tax attorney in Tampa. Here's what you should know.
The IRS just released the 2027 tax numbers: a bigger standard deduction and higher brackets. Tax Attorney Darrin Mish explains why the number that matters if you owe is the new balance you could create next year, the surprise adoption credit refunds the IRS can keep, and the deadline for businesses that file 1099s.
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Transcript
The IRS just announced your tax numbers for 2027. A bigger standard deduction. Higher brackets. And if you owe the IRS money, those numbers can help you, or they can sink your payment plan. It depends on what you do in January.
Good morning. It’s Monday, and this is IRS Monday. I’m Tax Attorney Darrin Mish. Every Monday, I take the IRS news, cut out the noise, and tell you what actually matters if you owe the IRS or you think you might. Three things today: the new 2027 tax numbers and what they mean if you owe, surprise refunds the IRS is sending out right now, and a deadline for any business that files 1099s.
The 2027 tax numbers
Let’s go. On November 5, 2026, the IRS released its inflation adjustments for tax year 2027. That’s the return you’ll file in 2028. But your paycheck in January feels it first.
Start with the standard deduction. For 2027, it’s $16,600 if you’re single. That’s up $500. It’s $33,200 for married couples filing jointly. That’s up $1,000. And it’s $24,925 for head of household.
The brackets moved up too. The top rate stays at 37 percent. For 2027, it starts at $661,375 for single filers. For married couples filing jointly, it starts at $793,650.
A few more. The annual gift exclusion goes up to $20,000 per person. The estate tax exclusion goes up to $15.48 million. And the maximum earned income credit, for a family with three or more kids, is $8,496.
The number that matters if you owe
So what does this mean for you? If you owe the IRS, the number that matters isn’t on the list. It’s the new balance you could create next year.
In my experience, the fastest way to blow up a payment plan is to owe again. Most payment plans will require you to file every return on time and pay every new tax on time. An offer in compromise comes with the same promise, for years. Add a new balance, and the IRS can say the deal is off. Then you’re back to square one, with the old debt and the new one.
What to do? When your first paycheck of 2027 shows up, look at it. If you’re self-employed, look at your estimated payments. The IRS has a free Tax Withholding Estimator on IRS.gov. Use it in January. Make sure enough is coming out so you don’t owe in April. A small refund is a lot cheaper than a broken payment plan.
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Quick hit: surprise adoption credit refunds
Now, the quick hits. Number one, surprise refunds. On October 16, 2026, the IRS said it started sending automatic refunds to people who claimed an adoption tax credit carryforward. Treasury changed how it reads the new tax law. For 2025 only, carryforwards from 2020 through 2024 can make more of the credit refundable, up to $5,000 per child.
The IRS says it has already sent more than 50,000 of those refunds. Most people don’t need to do anything. You don’t need to amend your return. You’ll get a notice in the mail.
Read that notice carefully. The IRS says it will tell you whether the money came to you, or whether it went to pay another tax or non-tax debt. So if you owe back taxes, or certain other government debts, the refund may never reach you. Don’t spend it until you see the notice.
Quick hit: the IRS FIRE system is closing
Number two, if your business files 1099s electronically, the system you’ve been using is going away. The IRS FIRE system takes its last filings on November 19, 2026, at 3 p.m. Starting in 2027, those returns go through a new IRS system called IRIS. Interesting name, by the way.
Your old FIRE login doesn’t carry over. You need the new IRIS access, and getting it takes time. If you wait until January, you could have 1099s due and no way to file them, and late 1099s come with a penalty for every form. Apply now, or make sure whoever files your 1099s already has.
This week’s takeaway
Here’s this week’s takeaway. First, the 2027 numbers are out. Use them to set up your withholding in January, so you don’t create a new balance. A new balance can cost you your payment plan. Second, if the IRS owes you a refund and you owe the IRS, the IRS pays itself first.
If you’re behind and you don’t know where you stand, that’s what we’re here for. Go to getirshelp.com or call my office at 813-229-7100. If you want IRS Monday in your inbox every week, sign up at getirshelp.com/irs-monday.
If you owe the IRS and you don’t know where to start, watch this one next.
I’ll see you next Monday, and thanks for watching.