The IRS is entering the 2026 tax filing season with about 70,000 employees, down from roughly 93,000 at its 2024 peak, after workforce reductions in 2025. The cuts came as the agency prepared for new tax law changes and continued processing backlogs.
The staffing reductions followed the Department of Government Efficiency initiative and related legislation enacted in late 2024, which set headcount reduction targets across federal agencies. The reductions also rolled back part of the staffing expansion the IRS pursued after the 2022 Inflation Reduction Act funded additional hiring, technology work, and enforcement efforts.
An acting IRS commissioner told the Senate Finance Committee in January 2026 that the agency is prioritizing identity theft and high-dollar fraud while managing reduced staffing. The official said the staffing levels are affecting service capacity during filing season.
Taxpayer service indicators have worsened compared with recent years, according to oversight and watchdog reports cited in public statements. Those reports describe longer phone wait times, a large inventory of unresolved cases, and extended processing times for paper-filed returns.
The IRS has also faced leadership turnover over the past year, with multiple commissioners or acting leaders serving since early 2025. Observers have said the changes have affected continuity during program rollouts and operational planning.
The filing season includes implementation of new tax law provisions described as increasing complexity for some filers. The article cited changes involving deductions, reporting requirements affecting gig workers, and adjustments to certain credits, which can require updates to forms and systems.
Some tax software companies and preparers have reported that rule changes and timing of updates can increase the risk of filing errors. The article cited a TurboTax statement describing higher error rates in testing and attributed the increase to changes in tax rules and synchronization issues.
Enforcement capacity has also been affected, according to outside analyses referenced in the article. It cited audit-rate estimates from Syracuse University’s Transactional Records Access Clearinghouse and projected revenue effects from reduced enforcement discussed by federal budget scorekeepers.
The article also described reductions to IRS modernization funding compared with earlier plans and said some technology initiatives have slowed. It cited examples such as upgrades to legacy systems and modernization efforts tied to fraud detection and case processing.
Several public figures and policy groups have weighed in on the staffing and funding changes, including former officials and advocacy organizations. Their statements have argued that staffing levels affect service, enforcement, and the agency’s ability to implement new tax rules.
For taxpayers, the IRS and third-party observers have warned that returns may take longer to process, particularly paper filings or returns requiring additional review. The article said the Direct File program is available in 30 states for 2026 and noted that taxpayers with more complex situations may still use commercial software or professional preparers.
The filing deadline remains April 15, 2026, and the IRS continues to encourage electronic filing and direct deposit where available. The agency is expected to provide additional guidance during the season as it manages volume and implements changes.