In brief
In her annual report, National Taxpayer Advocate Erin M. Collins highlighted the potential difficulties for taxpayers in the 2026 season due to a 27% reduction in IRS staff and significant tax law changes. Despite assurances from IRS leadership for a smooth filing process, concerns remain over the agency's capacity to assist taxpayers effectively. With many returning workers from the previous season leaving, officials are bracing for a challenging environment that may impact the processing of returns and refunds.
WASHINGTON (AP) — The national taxpayer advocate is cautioning that the 2026 tax filing season is likely to present challenges for taxpayers who encounter problems with filing their taxes given the exodus of IRS workers since the start of the Trump administration.
National Taxpayer Advocate Erin M. Collins released her annual report to Congress on Wednesday, which comes just days before the official start of the 2026 tax season. She indicated that while the IRS was capable of processing returns in 2025 without major disruptions, the landscape looks markedly different entering 2026.
“The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes,” Collins warned, referring to the recent Republican tax and spending measure that was signed into law last summer.
Although most taxpayers are expected to file their returns and receive refunds without delay, Collins emphasized that “the success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems.”
The tax filing season began on Monday, with Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano expressing optimism about a smooth proceeding. Bisignano announced the restructuring of IRS leadership to better handle the upcoming demands. He expressed confidence in the new team's preparedness for a successful tax filing season.
However, significant concerns linger among IRS watchdogs. Diana M. Tengesdal, the deputy inspector general for audit at the Treasury Inspector General for Tax Administration, has highlighted issues such as IRS staffing levels reverting to those of October 2021 amid increasing unprocessed tax returns and correspondence from taxpayers.
The IRS ended the previous year with approximately 74,000 employees after numerous layoffs and job losses, which has raised alarms about its ability to efficiently support taxpayers in the upcoming season. With new efforts to modernize operations and adapt to tax law changes, the agency may struggle to meet expectations.
Despite processing more than 165 million individual income tax returns in 2025, with an impressive 94% submitted electronically and an average refund of $3,167, the forthcoming filing season appears to be a cause for concern based on staffing cuts and operational challenges.
