February 3, 2026
IRS readiness questioned for 2026 tax season amid workforce cuts
TIGTA warns IRS backlog at 129% of pre-pandemic levels; phone service goal drops to 70%
IRS entered 2026 tax season with approximately 74,000 employees, down from over 102,000 in 2025. The 27% reduction came from Trump administration hiring freezes and early retirement incentives. The staffing cuts affected both frontline customer service and technical support positions.
The Treasury Inspector General for Tax Administration warned in a January 28, 2026 report that the staffing cuts could delay processing and correspondence. TIGTA specifically noted that reduced workforce might extend refund processing times and increase wait times for taxpayer assistance.
Tax season opened January 26, 2026 with extended call-center hours and new digital tools. The IRS expanded its online chat support and mobile app features to compensate for reduced phone support. The agency also hired seasonal workers to handle peak demand periods.
Analysts projected $100 billion increase in refunds for 2026, adding pressure to the strained system. The higher refund expectations came from changes in tax withholding rules and expanded child tax credits. More Americans expected larger refunds, increasing call volume and processing demands.
IRS Commissioner Danny Werfel assured the Senate Finance Committee on January 15, 2026 that preparations were on track despite challenges. He testified that the agency had implemented new efficiency measures and technology upgrades to maintain service levels with fewer staff.
The National Treasury Employees Union filed a grievance in January 2026 over the staffing cuts. The union argued that the reductions violated the collective bargaining agreement and would harm taxpayer services. They demanded restoration of funding for critical positions.
The IRS also faced new challenges implementing the 2025 tax law changes. The agency had to update systems and train remaining staff on new provisions while dealing with staffing shortages. This created additional pressure on an already strained workforce.
People, bills, and sources
Danny Werfel
IRS Commissioner
J. Russell George
Treasury Inspector General for Tax Administration
Ron Wyden
Senator (D-OR)
Mike Crapo
Senator (R-ID)
Tony Reardon
National Treasury Employees Union President
What you can do
1
civic action
Contact your representatives about IRS funding and taxpayer services
Urge your representatives to support adequate IRS funding for timely tax return processing and customer service. Explain that proper funding helps all taxpayers get refunds quickly and get assistance when needed.
find your representative at congress.gov
My name is [Name] and I am a constituent from [City]. I am calling about IRS funding for taxpayer services. With tax season here, I am concerned that staffing cuts could delay refunds and reduce customer service. Can you tell me where the senator stands on ensuring adequate IRS funding for taxpayer assistance?
2
understanding
Use IRS digital tools and file early to avoid delays
Take advantage of new IRS online tools and file your tax return early in the season. Early filing helps you get refunds faster and reduces pressure on the strained system during peak periods.
I am calling to get information about using IRS digital tools to file my taxes early this year. With the staffing issues, I want to make sure I use the online systems effectively and avoid any delays in getting my refund.
3
civic action
Support organizations that help taxpayers navigate the system
Donate to or volunteer with organizations that provide free tax preparation assistance and help low-income taxpayers navigate complex tax issues. These groups become even more important when IRS services are strained.
info@unitedway.org
I am calling to support United Way free tax preparation programs. With IRS staffing cuts, community tax assistance programs are more important than ever for helping people file taxes and get refunds they deserve.