Summary
The IRS is facing challenges for the 2026 tax season due to a 27% reduction in workforce and complex new tax laws. National Taxpayer Advocate Erin M. Collins warned that these issues might make filing more difficult for taxpayers. The IRS processed over 165 million tax returns in 2025, with most being filed electronically.
Key Facts
- The IRS is starting the 2026 tax season with about 74,000 employees, down from 102,000 at the beginning of the previous year.
- The IRS processed more than 165 million individual returns in 2025, with roughly 94% filed electronically.
- The average tax refund in 2025 was $3,167 for about 104 million people.
- Delays were experienced by 3.6 million taxpayers last year, with e-filed returns taking about seven weeks and paper returns 14 weeks to process.
- The One Big Beautiful Bill Act introduced complex new eligibility rules for deductions and benefits, potentially causing errors.
- Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano say the IRS is prepared, but internal reports highlight concerns about unprocessed returns and staff shortages.
- Collins emphasized the importance of quick and effective IRS assistance for taxpayers facing problems due to these issues.
