In brief
The IRS, beginning the 2026 tax season, must navigate a significant workforce reduction and a complex implementation of new tax laws. As National Taxpayer Advocate Erin M. Collins reports, although taxpayers are expected to file and receive refunds without delays, the agency's ability to assist those encountering difficulties remains critical. With around 74,000 employees, the IRS has already faced challenges from unprocessed tax returns and prior layoffs amidst ongoing efficiency reforms. Expectations for a smooth season are under scrutiny as taxpayer service enhancement remains in focus.
WASHINGTON (AP) — The national taxpayer advocate is warning that the 2026 tax filing season is likely to present challenges for taxpayers. This comes in light of a significant reduction in IRS workforce since the onset of the Trump administration.
National Taxpayer Advocate Erin M. Collins released her annual report to Congress, highlighting that while the IRS was able to manage filings in 2025 without major interruptions, “the landscape is markedly different” as we enter 2026.
Collins pointed out, “The IRS is confronting a reduction of 27% of its workforce alongside major leadership changes and the need to implement complicated tax law changes,” which were introduced by Republicans’ tax and spending measure signed into law last summer.
While most taxpayers should experience smooth filings and refund processes, Collins stressed that the definition of success for the 2026 filing season hinges on how effectively the IRS can assist those who encounter issues.
The IRS started the tax year 2026 amid significant scrutiny over its operations and potential bottlenecks. Agency officials, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, have asserted confidence for the impending season. Bisignano announced restructuring plans intended to bolster IRS leadership, expressing optimism about the agency's capacity to deliver an effective filing season.
Despite this optimism, challenges remain with several IRS watchdogs voicing concerns regarding staffing levels and unprocessed returns, which continue to linger from previous seasons. Diana M. Tengesdal, deputy inspector general for audit, issued a caution indicating that staffing has reverted to levels seen in October 2021, leading to fears that restructuring initiatives may not yield immediate benefits for this season.
As the IRS gears up to process millions of returns, the focus will remain on addressing unprocessed taxpayer queries and ensuring a seamless filing experience. In 2025, the IRS processed over 165 million returns, with the majority of submissions taking place electronically, and refunds averaged at about $3,167.