IRS Challenges Loom Over Tax Season 2026
The 2026 tax filing season is shaping up to be a challenging one for taxpayers, according to the national taxpayer advocate, Erin M. Collins. Her annual report to Congress highlights a perfect storm of issues that could disrupt the process. With a 27% reduction in the IRS workforce, leadership turnover, and complex tax law changes, the agency is facing a tough road ahead.
Despite the potential hurdles, Collins reassures that most taxpayers should be able to file their returns and receive refunds without delay. However, she emphasizes that the success of the filing season will depend on the IRS's ability to assist those who encounter problems. With the season already underway, agency leaders, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, are confident in a smooth process.
Bessent and others in the Trump administration have promised substantial tax refunds to address the affordability crisis. However, other IRS watchdogs have raised concerns. Diana M. Tengesdal, deputy inspector general for audit, pointed to staffing issues and unprocessed tax returns, suggesting that initiatives to modernize tax administration may not be enough to overcome these challenges during the 2026 filing season.
The IRS began 2025 with 102,000 employees and ended with 74,000 after layoffs. Despite efforts to modernize, the agency is still grappling with the aftermath of workforce reductions. The 2025 tax season saw 165 million individual income tax returns processed, with 94% submitted electronically, and an average refund of $3,167.
As the 2026 tax season unfolds, taxpayers can expect a mix of challenges and support. While the IRS works to navigate the complexities, taxpayers should be prepared for potential delays and seek assistance when needed.
