What's happened
The IRS prepares for the 2026 tax season amid staffing reductions and new law changes. Despite projected higher refunds, the agency warns of potential delays and operational hurdles, with leadership reorganizations and a reduced workforce raising concerns about service quality and compliance.
What's behind the headline?
The IRS's current challenges reflect a broader trend of underfunding and politicization that threaten its core functions. The leadership reorganization under CEO Frank Bisignano aims to modernize and improve taxpayer service, but staffing reductions—down from 102,000 to roughly 74,000 employees—pose significant risks. The agency's ability to handle an expected 164 million returns, with higher projected refunds, will depend on effective management and resource allocation. The appointment of whistleblowers and experienced leaders signals an attempt to restore credibility, yet the looming operational hurdles suggest delays and service disruptions are likely. This situation underscores the importance of stable funding and political support for the IRS to fulfill its role effectively, especially as new tax laws increase complexity and compliance demands. The next few months will reveal whether reforms can offset staffing deficits and law changes, or if taxpayers will face longer wait times and reduced service quality.
What the papers say
The Independent reports that the IRS is undergoing a leadership reorganization aimed at improving service amid staffing cuts and new tax law implementation. AP News highlights the agency's preparations for the upcoming tax season, emphasizing the projected increase in refunds and cautioning taxpayers about potential delays. The New York Times provides context on the leadership turmoil and the appointment of Frank Bisignano, noting the challenges posed by staffing reductions and recent political pressures. All sources agree that the IRS faces significant operational hurdles but are optimistic about leadership efforts to modernize and improve taxpayer experience.
How we got here
The IRS has experienced significant staffing cuts since 2025, with about 28,000 employees leaving amid political and administrative turmoil. The agency is also tasked with implementing major tax law changes from a spending package signed last summer, including new relief provisions and deductions. These factors, combined with a leadership shake-up, have raised concerns about the agency's capacity to process millions of returns smoothly in 2026.
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Common question
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What Are the Main Challenges Facing US Law Enforcement and the IRS in 2026?
This year, both US law enforcement agencies and the IRS are navigating significant changes and controversies. From staffing shortages and new laws to public trust issues, these developments impact how these agencies operate and serve the public. Curious about what’s happening and how it might affect you? Below are the key questions and answers about these pressing issues.
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