In brief
The National Taxpayer Advocate, Erin M. Collins, has highlighted impending difficulties for taxpayers during the 2026 tax filing season, owing to a 27% workforce reduction at the IRS and new tax laws enforced under the Trump administration. Although most taxpayers are expected to file without delays, support for those facing issues remains a concern. IRS officials express confidence in managing the filing season effectively despite these challenges.
WASHINGTON (AP) — The national taxpayer advocate is cautioning that the 2026 tax filing season may pose significant challenges for taxpayers. This warning comes amid an exodus of IRS workers and notable changes in tax laws since the Trump administration began.
In her annual report to Congress, National Taxpayer Advocate Erin M. Collins emphasized the stark differences in the IRS landscape compared to previous years. Although the agency processed returns effectively in 2025, the absence of a competent workforce will test its capabilities in 2026.
The IRS is confronting a reduction of 27% of its workforce, unexpected leadership turnover, and extensive tax law changes, which were mandated by recent legislation, Collins noted.
Collins conveyed cautious optimism, stating most taxpayers should be able to file returns and receive refunds without significant delay. However, the efficacy of the filing season will depend heavily on the IRS's ability to assist the millions who may encounter problems.
Concerns are further articulated by Diana M. Tengesdal, the deputy inspector general for audit at the Treasury Inspector General for Tax Administration. She pointed to insufficient staffing numbers and the backlog of unprocessed tax returns which could hinder the IRS's performance.
As the filing season commenced, IRS leaders, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, expressed confidence in the IRS's readiness, citing a new leadership structure aimed at addressing future hurdles.
Despite promises of substantial tax refunds as part of the Republican administration's approach to the ongoing affordability crisis, challenges remain. The IRS enters the 2026 tax filing season with about 74,000 employees, a significant drop from the approximately 102,000 who were employed at the beginning of 2025, due to layoffs and firings.
While over 165 million individual income tax returns were processed in 2025, the effectiveness of the upcoming season remains uncertain as many experienced customer service workers have left the agency. Collins concluded, stating that the success of the tax season will rest on how effectively the IRS can provide assistance to its users.
