WASHINGTON (AP) — The anticipated challenges for taxpayers during the 2026 tax filing season are underscored by the significant reduction in IRS staff since the Trump administration. National Taxpayer Advocate Erin M. Collins's annual report to Congress has raised flags about the IRS’s preparedness this season.
Collins, who flagged previously successful processing of returns in 2025, acknowledged that the IRS now faces a drastically different situation as it enters 2026. The agency is dealing with a workforce cut of 27%, coupled with changes in tax regulations stemming from recent Republican legislation.
While Collins reassured that most taxpayers might still file their returns without delays, she cautioned that the IRS’s success this season hinges on its ability to assist those who encounter problems.
The tax filing season for 2026 started this week, with IRS leadership optimistic about having a smooth process. Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano expressed confidence in the restructured leadership within the agency aimed at handling the inevitable tax-related inquiries of taxpayers effectively.
However, concerns proliferate from various IRS watchdogs regarding the operational preparedness of the agency. Diana M. Tengesdal, from the Treasury Inspector General for Tax Administration, alerted that the IRS continues to navigate staffing issues and a backlog of unresolved taxpayer correspondence and tax returns.
The dramatic reduction in staff, from about 102,000 employees at the beginning of 2025 to approximately 74,000 employees now, raises questions about the IRS's ability to deliver adequate services to taxpayers requesting assistance.
Despite historical processing of over 165 million tax returns in the previous filing year, stakeholders worry that the IRS's efficiency this season could be compromised.
