Taxpayers may face issues this 2026 tax season after IRS layoffs and new laws, a watchdog warns
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Taxpayers may face issues this 2026 tax season after IRS layoffs and new laws, a watchdog warns
"She finds that while the IRS was able to process returns in 2025 without major disruptions, "entering 2026, the landscape is markedly different." "The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes" mandated by Republicans' tax and spending measure that President Donald Trump signed into law last summer."
"Collins says most taxpayers should be able to file their returns and receive their refunds without delay, but she notes "the success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems." The tax filing season began on Monday, and agency leaders, including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, have said they expect a smooth season."
National Taxpayer Advocate Erin M. Collins warns the 2026 filing season will present challenges because the IRS has lost 27% of its workforce, experienced leadership turnover, and must implement extensive, complex tax law changes from the recent Republican tax and spending measure. Most taxpayers should be able to file and receive refunds without delay. The critical issue is how the IRS will assist the millions of taxpayers who encounter problems during filing. Agency leaders including Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano have expressed confidence in a smooth season and promised substantial tax refunds as part of the administration's affordability plan.
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