It is April 30, 2026. The IRS has officially closed the filing season with its expanded “Direct File” system. For the first time, millions of taxpayers bypassed commercial software, and the data insights are shifting IRS audit priorities for the next quarter.
- The Trend: The IRS now has real-time data on gig-economy income that was previously under-reported.
- The Impact: LLCs that rely heavily on 1099 contractors will face automated “mismatch” notices starting in May 2026.
- The Shark Insight: “The IRS just built its own ‘data lake.’ If your LLC’s payments to contractors don’t match what they reported through Direct File, an automated flag is already on your file. Cross-reference your 1099-K forms immediately.”