Tax work has always required patience, judgment and a steady hand. What is different today is the speed of change and the pressure that comes with it. Over the past year I have spent a lot of time talking with firms, inhouse tax leaders, software providers and the large online communities where professionals now trade advice and frustrations in real time. Certain themes appear again and again. None of them are theoretical. All of them already shape daily work.
Be forewarned: I will not dwell on the concern many of us have already expressed regarding the impact of IRS staff reductions, budget cuts and leadership shifts on the upcoming tax season. That story will continue to unfold through 2026, nor will I discuss the infusion of private equity into the accounting firm space. Here I focus instead on the broader, structural challenges and practical steps tax teams must address.
Here are the other, broader issues I hear that matter a great deal to tax professionals through 2026.
Rules keep changing, and the data burden keeps growing
Every tax professional, whether in a firm or a company, is dealing with rules that shift faster than systems can keep up. Large global reforms get the headlines, but the real pressure comes from something less dramatic. Agencies want more detail than ever. They want cleaner reconciliations. They want numbers that tie out across filings, financial statements and payroll. They want data that many organizations never had to collect before.
This creates a simple but stubborn problem. Most tax teams do not fully control the systems they depend on. Key data lives in accounting, payroll, procurement or overseas subsidiaries where formats differ, and documentation standards vary. When rules change, tax teams must scramble to connect dots that were never meant to be connected.
What helps is a shift in mindset. Instead of treating each new rule as a one-off project, build a standing process that identifies who owns which data, how it is validated and when it is refreshed. Clear ownership cuts down the late-season scramble and reduces the risk of missing information. It also gives leaders a way to turn vague requirements into concrete steps.
Government guidance is slower, and audit expectations are higher
Many tax agencies are stretched. Staff turnover, outdated systems and shifting budgets slow the release of guidance. When guidance is slow, professionals must make judgment calls without the comfort of clear answers. At the same time, the audits that do happen are far more detailed. Agencies rely on analytics, cross checks and document requests that run wider and deeper than in the past.
Tax professionals feel this tension daily. Clients and executives want certainty. Agencies want airtight support. The middle ground can feel uncomfortable.
A practical response is to invest more in documentation upfront. Write down why a position makes sense, which facts support it, and which alternatives were considered. This does not have to be a long memo. It just needs to show clear thought. When agencies ask questions later, you have the story ready. When guidance eventually arrives, you can adjust without starting from scratch.
AI is moving faster than the controls around it
Conversations across LinkedIn, X, Substack and Reddit make one thing clear. Many tax professionals use generative AI tools every day, sometimes with structure, sometimes without it. They use it to summarize documents, draft emails, produce checklists and research common questions. The gains in speed are real. The risks are real, too.
The risk is not so much that AI will replace tax professionals. The risk is that people will trust an answer that is not fully accurate or will paste sensitive information into a system that should not have it. Firms and companies are just now writing rules for how these tools should be used. Many of those rules are vague or unenforced.
The solution is a simple set of guardrails. Treat every AI output as a first draft, not a finished product. Keep sensitive information out of any tool you cannot fully control. Require human review for anything tied to a tax filing, an audit response or a legal position. And store the prompts used for any AI-assisted work, so the reasoning can be traced later.
AI is a helpful assistant. It is not a substitute for professional judgment.
Burnout is rising because tax work has become nonstop
One topic comes up everywhere online: exhaustion. The filing season feels longer. Off-season advisory work is heavier. Clients expect near-instant responses. In-house teams face the same demands but with fewer people and shrinking budgets. Many professionals say they are "always on," even outside peak months.
This is not sustainable. Teams need stronger operations, not more late nights. A clear playbook helps. Write down who does what, when deadlines hit, and how the team communicates during crunch periods. Crosstrain so no task rests on one person. Use temporary help early, before problems snowball. And keep a short list of work that can be paused when the load spikes.
These steps sound simple, but they reduce stress and protect quality. They also make the work easier for new hires at a time when attracting talent is a challenge.
Tax decisions are now part of a company's public reputation
Tax was once a behind-the-scenes function. Today it is on the front page. Investors, employees, and customers look at a company's tax profile as part of its identity. They notice inconsistencies between public statements and tax outcomes. They question planning that looks aggressive or opaque.
Tax professionals now play a role that feels closer to brand management. They must explain "why", not just "what". Boards want clear language that shows how tax choices fit the company's values and risk tolerance. Public disclosures need to be consistent. And when questions arise, companies must be ready with understandable answers.
The good news is that transparency builds trust. A simple narrative that explains the company's tax approach, the controls behind it and the tradeoffs involved go a long way. This is not about public relations. It's about clarity.
The overlooked opportunities
Amid the pressure, there are practical opportunities that deserve more attention.
Better tax data practices: Many headaches come from scattered or inconsistent data. A small investment in standard formats, naming rules and documentation can cut hours of reconciliation work.
Scenario planning: Tax teams often run numbers for expected outcomes but rarely test worst-case or unusual scenarios. Running these tests once or twice a year prepares teams for audits and surprises.
Shared resources across the profession: Online communities show how much people rely on one another. There is room for firms and corporate teams to develop shared templates, checklists and training materials that raise quality and reduce duplicated effort.
Looking ahead
Through 2026, the work will not get easier. Rules will continue to shift. Audits will stay intense. Technology will accelerate. Data demands will grow. What will make the difference is not perfect foresight but strong habits. Clear documentation. Clean data. Practical controls around AI. A calmer, more repeatable workflow. And honest communication with clients and leadership.
Tax professionals have always been problem solvers. The problems are bigger now, but the mindset remains the same. Focus on what you can control, build systems that hold up under pressure and stay grounded in facts. That is how you can handle the coming year with confidence.
