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 3:31pm

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The IRS is expected to face significant challenges in the 2026 tax filing season due to a 27% reduction in its workforce, leadership turnover, and the implementation of complex new tax laws, according to the National Taxpayer Advocate. While most taxpayers should be able to file returns and receive refunds without delay, the agency may struggle to assist the millions who experience problems.

Why it matters

The IRS workforce cuts and new tax laws could create major disruptions for taxpayers seeking assistance, potentially leading to delays in processing returns and refunds. This comes at a time when many Americans are already facing an affordability crisis and relying on timely tax refunds.

The details

The National Taxpayer Advocate's annual report to Congress warns that the 2026 tax filing season will be markedly different from 2025, with the IRS confronting a 27% reduction in its workforce, leadership turnover, and the implementation of extensive new tax laws. While the IRS leadership has expressed confidence in the agency's preparedness, other 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 the annual report warning of challenges for the 2026 tax season.

Scott Bessent

The Treasury Secretary, who has promised American taxpayers "substantial tax refunds" as part of the Republican administration's solution to the 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 and unprocessed returns at the start of the 2026 tax season.

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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

“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

“Initiatives to offset staffing losses may not yield expected benefits during the 2026 Filing Season.”

— Diana M. Tengesdal, Deputy Inspector General for Audit, Treasury Inspector General for Tax Administration

What’s next

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The takeaway

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