Taxpayer Advocacy Group Alerts on 2026 Filing Season Challenges
A national taxpayer advocacy organization is raising concerns about potential difficulties for taxpayers during the 2026 tax filing season, especially for those encountering issues with their returns. Erin M. Collins, in her annual report submitted to Congress on Wednesday—just two days after the season commenced—highlighted the situation. While the IRS managed to process returns in 2025 without significant issues, Collins noted, “Going into 2026, things are markedly different.” She pointed out that the IRS is dealing with a 27% decrease in staff, changes in leadership, and the implementation of intricate tax code updates mandated by the Republican tax and spending bill signed into law by President Trump last summer.
Collins remarked that most taxpayers should still be able to file their returns and receive refunds without major delays. However, she emphasized that “the success of this filing season will depend on how well the IRS helps millions of taxpayers in trouble.” The tax filing season starts on Monday, and leaders from the agency, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, have expressed optimism for a smooth process. In a letter to the IRS workforce last week, Bisignano outlined new priorities along with a reorganization of leadership, stating, “With the creation of this new team, I am confident that the IRS is poised to deliver a successful tax filing season to the American people.”
Meanwhile, Bessent and other officials from Trump’s administration have committed to providing “significant tax refunds” to help address the ongoing affordability crisis faced by citizens. However, additional IRS oversight bodies are raising alarms regarding the 2026 tax season’s kickoff. Diana M. Tengesdal, the Deputy Inspector General for Audit at the Treasury Department, sent a letter to IRS leadership highlighting staffing levels as low as they were in October 2021, along with thousands of state return processes still pending and communication challenges with taxpayers.
In 2025, the IRS began with around 102,000 employees but saw that number drop to about 74,000 due to layoffs and reductions by the Department of Government Efficiency (DOGE). The office of Tengesdal noted that despite attempts to modernize tax administration, “efforts to offset headcount losses may not yield the expected benefits during the 2026 filing season.” Over 165 million individual income tax returns were processed in 2025, with 94% submitted electronically, while the average refund stood at $3,167.
