The IRS Workforce Is Down By 27%. It Could Slow Your Refund

Core Insights - The 2026 tax filing season is expected to be challenging for some taxpayers due to changes in tax law and significant layoffs at the IRS [2][9] - The IRS is facing staffing shortages and leadership instability, which may hinder its ability to assist taxpayers effectively [5][9] Taxpayer Experience - Most taxpayers are anticipated to have a smooth filing experience, but those needing assistance or who file incorrectly may encounter delays [2][3] - The Taxpayer Advocate Service emphasizes the importance of IRS support for taxpayers experiencing issues during the filing season [3] Impact of Tax Law Changes - The "One Big, Beautiful Bill" Act introduced over 100 changes to the tax code, including new deductions and credits, which may lead to increased errors in tax returns [7][9] - Taxpayers may struggle to navigate these changes, potentially resulting in more calls to IRS customer service [9] IRS Operational Challenges - The IRS laid off 27% of its workforce in 2025 and is currently 1,000 employees short of its goal to hire 3,500 new customer service representatives [5][6] - The transition to virtual refunds, with most refunds sent electronically, may complicate the filing process for taxpayers who do not provide direct deposit information [8] Overall Outlook - The combination of staffing shortages, tax law changes, and the shift to virtual refunds is likely to create a more difficult and frustrating filing season for taxpayers and IRS employees alike [10]