IRS faces challenges in 2026 tax season due to jobs cuts and new laws
Summary
The IRS is facing challenges for the 2026 tax season due to a significant reduction in its workforce and new tax laws. These changes, combined with leadership turnover, may lead to difficulties in helping taxpayers who encounter problems with their tax filings. Despite this, IRS leaders are confident they can manage the season effectively.Key Facts
- The IRS workforce has decreased by 27% since the start of the Trump administration.
- New and complex tax laws were introduced after President Trump signed a tax measure.
- National Taxpayer Advocate Erin M. Collins reported these challenges to Congress.
- Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano expect a smooth tax season.
- Bisignano announced new priorities and leadership reorganization within the IRS.
- Concerns remain due to staffing at October 2021 levels and unprocessed tax returns.
- The IRS processed over 165 million tax returns in 2025, with 94% filed electronically.
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