IRS Faces Challenges in 2026 Tax Season Due to Workforce Cuts and New Laws

National Taxpayer Advocate warns of potential disruptions for taxpayers seeking assistance

Jan. 28, 2026 at 11:23am

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The national taxpayer advocate has cautioned that the 2026 tax filing season is likely to present significant challenges for taxpayers due to a 27% reduction in the IRS workforce, leadership turnover, and the implementation of complex new tax laws. While the IRS was able to process returns in 2025 without major disruptions, the advocate warns that the 'success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems'.

Why it matters

The IRS workforce reductions and new tax law changes could lead to delays and difficulties for many taxpayers trying to file their returns and receive their refunds. This raises concerns about the IRS's ability to provide adequate customer service and support during the upcoming tax season.

The details

According to the report from National Taxpayer Advocate Erin M. Collins, the IRS is 'simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes' mandated by a Republican tax and spending measure signed into law last summer. While the IRS leadership has expressed confidence in the agency's preparedness, other IRS watchdogs have outlined major concerns about staffing levels and unprocessed returns from the previous year.

  • The 2026 tax filing season began on Monday, January 27, 2026.
  • The National Taxpayer Advocate released her annual report to Congress on Wednesday, January 29, 2026.

The players

Erin M. Collins

The National Taxpayer Advocate, who released a report warning of challenges for the 2026 tax filing season.

Scott Bessent

The Treasury Secretary, who has promised 'substantial tax refunds' as part of the Republican administration's solution to an ongoing affordability crisis.

Frank Bisignano

The IRS CEO, who announced new priorities and a reorganization of IRS executive leadership in a letter to the agency's 74,000 employees.

Diana M. Tengesdal

The deputy inspector general for audit at the Treasury Inspector General for Tax Administration, who outlined major concerns about IRS staffing levels and unprocessed returns.

Donald Trump

The former president whose administration signed into law the tax and spending measure that is leading to the complex new tax law changes.

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What they’re saying

“The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes”

— Erin M. Collins, National Taxpayer Advocate

“I'm confident that with this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public.”

— Frank Bisignano, IRS CEO

“Substantial tax refunds”

— Scott Bessent, Treasury Secretary

What’s next

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The takeaway

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