Concerns for Upcoming Tax Filing Season

WASHINGTON — A national taxpayer advocacy group is raising alarms about the upcoming 2026 tax filing season. They cite significant staffing reductions at the Internal Revenue Service (IRS) since the Trump administration took office.

In her annual report to Congress, Tax Advocate Erin M. Collins pointed out that, unlike the smooth processing seen in 2025, the 2026 season is expected to be quite different. “There are substantial challenges ahead,” she noted, referring to multiple factors affecting the agency.

Collins highlighted a 27% decrease in IRS personnel, ongoing leadership changes, and the implementation of complex tax code amendments stemming from a Republican tax and spending package signed by former President Trump last summer.

Despite these issues, Collins suggested that most taxpayers would likely manage to file returns and get refunds without major delays. However, she emphasized the importance of the IRS’s ability to assist those facing difficulties this season.

As the filing season kicks off on Monday, key IRS figures, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, expressed optimism about a smooth process.

Bisignano recently shared updated priorities and a reorganization plan with IRS staff, asserting that the new structure would facilitate a successful filing season.

Bessent and other officials from Trump’s administration have also promised “significant tax refunds” as part of their response to ongoing affordability challenges for American citizens.

Still, apprehensions remain. Diana M. Tengesdal, Deputy Inspector General for Audit at the Treasury Department’s Tax Administration, addressed IRS leadership, outlining worries over staffing numbers and a backlog of unprocessed returns.

In 2025, the IRS began with around 102,000 employees but saw that number drop to about 74,000 due to layoffs and other reductions. Last year, employees involved in tax processing weren’t permitted to take buyouts until after the filing deadline, but many have since left.

Tengesdal’s office remarked that although there are new modernization efforts underway, the anticipated benefits may not materialize during the 2026 filing season.

In the previous year, over 165 million individual income tax returns were processed, with 94% being submitted electronically. The average refund stood at $3,167.