{"id":334428,"date":"2026-01-28T10:43:09","date_gmt":"2026-01-28T15:43:09","guid":{"rendered":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/irs-faces-challenges-in-2026-tax-season-due-to-workforce-cuts-new-laws-watchdog"},"modified":"2026-01-28T10:43:15","modified_gmt":"2026-01-28T15:43:15","slug":"irs-faces-challenges-in-2026-tax-season-due-to-workforce-cuts-new-laws-watchdog","status":"publish","type":"post","link":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/irs-faces-challenges-in-2026-tax-season-due-to-workforce-cuts-new-laws-watchdog","title":{"rendered":"IRS faces challenges in 2026 tax season because of workforce cuts, new legal guidelines: Watchdog"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div data-testid=\"prism-article-body\">\n<p class=\"EkqkG IGXmU nlgHS yuUao MvWXB TjIXL aGjvy ebVHC \"><span class=\"oyrPY qlwaB AGxeB \">WASHINGTON &#8212; <\/span>The national taxpayer advocate is cautioning that <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/treasury-irs-tax-season-fd379f43d501d064cdad046eb32fb9f6\">the 2026 tax filing season<\/a> is likely to present challenges for taxpayers who encounter problems with filing their taxes given the exodus of IRS workers since the start of the Trump administration. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">National Taxpayer Advocate Erin M. Collins released her annual report to Congress on Wednesday, two days after the start of the 2026 season. She finds that while <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/hub\/internal-revenue-service\">the IRS<\/a> was able to process returns in 2025 without major disruptions, \u201centering 2026, the landscape is markedly different.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cThe IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes\u201d mandated by <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/what-is-republican-trump-tax-bill-f65be44e1050431a601320197322551b\">Republicans&#8217; tax and spending measure<\/a> that President Donald Trump signed into law last summer, Collins said in her report.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Collins says most taxpayers should be able to file their returns and receive their refunds without delay, but she notes \u201cthe success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The tax filing season began on Monday, and agency leaders, including <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/bessent-confirmed-treasury-secretary-2ca8eb1c882d094b032584adf1a95c48\">Treasury Secretary Scott Bessent<\/a> and <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/social-security-irs-bessent-bisignano-e58cfaf2c88299e728d9783c8f5476fa\">IRS CEO Frank Bisignano<\/a>, have said they expect a smooth season. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Bisignano last week announced <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/treasury-irs-tax-season-fd379f43d501d064cdad046eb32fb9f6\">new priorities and a reorganization<\/a> of IRS executive leadership in a letter addressed to the agency\u2019s 74,000 employees, saying that he is \u201cconfident that with this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Bessent as well as others in Trump&#8217;s second administration have also promised American taxpayers \u201csubstantial tax refunds,\u201d as part of the Republican administration&#8217;s solution to an ongoing affordability crisis.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Still, other IRS watchdogs have outlined major concerns at the start of the 2026 tax season.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Diana M. Tengesdal, deputy inspector general for audit at the Treasury Inspector General for Tax Administration, wrote a letter to IRS leadership on Monday and pointed to IRS staffing at October 2021 levels, combined with thousands of unprocessed tax returns and taxpayer correspondence. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The IRS started 2025 with about 102,000 employees and finished with about 74,000 after a series of firings and layoffs brought on by the Department of Government Efficiency. While last year IRS employees involved in <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/article\/irs-tax-season-direct-file-refund-31fcb0c4466e8ef286952d3e22b9c277\">the 2025 tax season<\/a> were not allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, this year many of those customer service workers have left. <\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Tengesdal&#8217;s office says despite new efforts to modernize tax administration, \u201cinitiatives to offset staffing losses may not yield expected benefits during the 2026 Filing Season.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">More than 165 million individual income tax returns were processed in 2025, with 94% submitted electronically. The average refund was $3,167.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">___<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC eTIW sUzSN \">Follow the AP&#8217;s coverage of the IRS at <a class=\"zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE \" data-testid=\"prism-linkbase\" href=\"https:\/\/apnews.com\/hub\/internal-revenue-service\">https:\/\/apnews.com\/hub\/internal-revenue-service<\/a>.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/abcnews.go.com\/US\/wireStory\/irs-faces-stiff-challenges-2026-tax-season-due-129634415\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON &#8212; The national taxpayer advocate is cautioning that the 2026 tax filing season is likely to present challenges for taxpayers who encounter problems with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":334431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[434,1674,12576,12574,12575,12573,7790,9358,10826,4914,636],"class_list":["post-334428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ceo","tag-congress","tag-division-of-authorities-effectivity","tag-erin-m-collins","tag-frank-bisignano","tag-nationwide-taxpayer-advocate","tag-republican-administration","tag-scott-bessent","tag-treasury-secretary","tag-trump-administration","tag-washington"],"_links":{"self":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/334428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/comments?post=334428"}],"version-history":[{"count":2,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/334428\/revisions"}],"predecessor-version":[{"id":334430,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/334428\/revisions\/334430"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/media\/334431"}],"wp:attachment":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/media?parent=334428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/categories?post=334428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/tags?post=334428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}