The Internal Revenue Service (IRS) processed tax refunds more efficiently than anticipated during the 2026 tax season, even after substantial workforce reductions. However, the agency’s ability to provide human assistance, particularly via telephone, fell significantly short, according to a report from the national taxpayer advocate.
Despite the challenges, the majority of taxpayers successfully filed their returns and received refunds without major delays. Technology improvements and automation played a key role in preventing widespread issues, the report released Wednesday found.
The IRS workforce experienced a significant decline, starting 2025 with approximately 102,000 employees and ending with about 74,000. These layoffs and firings were attributed to the Department of Government Efficiency. A previous measure in the prior year had prevented IRS employees from accepting buyouts until after the filing deadline, leading to a greater exodus of customer service staff this year.
Challenges in Taxpayer Assistance
While overall performance was better than expected, the IRS struggled with phone support. Only 59% of calls to major accounts management lines were answered. Taxpayers on compliance lines faced even greater difficulty, with only a 34% answer rate. The situation was most dire for victims of identity theft, who could only get through 19% of the time.
For victims of identity theft, the wait for assistance remains a protracted issue. The report indicates that more than 500,000 identity theft victims are currently experiencing average case resolution times of around 20 months, with processing times approaching 600 days.
Erin M. Collins, who leads the independent watchdog agency for the IRS, warned earlier in the year that the 2026 tax filing season could present difficulties for taxpayers encountering issues due to the significant reduction in IRS staff since the start of the Trump administration.