This year’s tax season brings some changes, notably under the One Big Beautiful Bill Act (OBBBA). However, you might find that your refund takes a bit longer to arrive this time around.
The IRS is set to have 27% fewer employees by 2026 compared to last year, which could slow down the processing of around 164 million returns. So, what does this mean for the timeline of your refunds?
The agency started 2025 with approximately 102,000 employees, but by year’s end, that number dropped to about 74,000. Some departments faced extreme reductions: Direct File saw layoffs of 88%, Online Services lost all staff, while others suffered considerable cuts as well.
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The small business and self-employed sector, which aids taxpayers in understanding their obligations, experienced a over 37% reduction.
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Taxpayer Services, which helps individuals navigate tax laws, was cut by 21%.
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The IT department, which supports internal services, faced a 25% reduction in workforce.
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The unit that handles original and amended returns, addresses errors, and provides assistance saw a 17% cut.
In the past, the IRS would bring in seasonal workers to handle the rush, but that process was disrupted by the government shutdown and changes to hiring protocols in late 2025.
By December 2025, teams responsible for processing returns had managed to hire only 2% of the staff they required. Even if more employees were brought on board, the onboarding process could extend up to 80 days—well past this tax season’s filing deadlines.
Customer service will have the greatest impact on taxpayers, as a significant number of calls go unanswered—around 100 million each year—as well as countless other inquiries. The staff that are available may not be fully equipped to assist; changes in training mean they can primarily screen calls and answer basic questions.
The OBBBA introduced over 100 modifications to tax regulations, complicating the tax return process further. Erin M. Collins, National Taxpayer Advocate, noted in her report that while the new act generally benefits taxpayers, the complex eligibility criteria can be confusing. This makes it harder for the IRS to manage returns effectively during the filing period.
Given these adjustments, many taxpayers might struggle to get the support they usually rely on, potentially leading to filing mistakes and longer refund delays.
Backlogs and Paper Return Efforts
A backlog of around 2 million returns from previous years also stands to impact this season’s refunds. Despite keeping some staff during the government shutdown in late 2025, progress on this issue has been limited.
Efforts to transition to all-electronic submissions have also lagged due to staff shortages. The automation processes meant to streamline this conversion have yet to be finalized, which could further delay services.
IRS website traffic has surged by more than 49% compared to last year, so utilizing online resources might be the quickest way to reach your tax-related information this season.
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This page contains useful links on filing and amending your return.
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A step-by-step guide outlines how to file your taxes, request extensions, and keep up with tax changes.
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The Interactive Tax Assistant can provide you with articles about deductions, credits, and other filing requirements.
Applying online and opting for direct deposit remains the fastest route to receiving your refund, with most anticipated within 21 days, although some cases may take longer due to the nature of the claims.
You can track the status of your refund through various options:
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Online tracking requires your Social Security number, expected refund amount, tax year, and filing status. Information typically becomes available 24 hours after electronic submissions and four weeks after paper filings.
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The IRS2Go mobile app is available for additional tax-related help and provides access to necessary tools.
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Setting up an IRS Individual Online Account allows you to monitor your balance, payments, and records.
Despite the staffing issues, the IRS generally still anticipates issuing most refunds within 21 days post electronic filing. However, be aware that these expectations might shift.
If you want to check your refund status online, remember to have your relevant information ready, as mentioned earlier. Usually, the IRS boosts its staff for the busy tax season, but this year’s circumstances may strain that standard approach.
