Mark your calendars, taxpayers! January 26th is the day early birds can officially start filing their 2025 taxes, kicking off the 2026 tax season. But here's where it gets interesting: this year, the IRS faces a perfect storm of challenges that could make filing a bit bumpier than usual. And this is the part most people miss: tens of thousands of IRS employees are gone, thanks to layoffs and buyouts tied to government efficiency reforms. Could this lead to longer wait times or more confusion? Only time will tell.
The IRS isn’t just dealing with staffing shortages—they’re also juggling major changes from the Republicans’ tax and spending package, signed into law last summer. Some of these changes apply retroactively to the 2025 tax year, which means updated forms and likely more questions from taxpayers. Acting IRS Commissioner Scott Bessent remains optimistic, stating, “President Trump is committed to improving the tax filing experience, and we’re confident in delivering results for businesses and consumers.”
But here’s the controversial part: the IRS workforce has shrunk by 26%, dropping from 102,113 employees at the end of the Biden administration to just 75,702, according to the National Taxpayer Advocate’s June report. While IRS employees involved in last year’s tax season couldn’t accept buyouts until after the April 15, 2025 deadline, the impact of these cuts is now front and center. Erin M. Collins, the National Taxpayer Advocate, warns, “With fewer staff and significant tax law changes, next year’s filing season could be rocky.”
The IRS expects to process around 164 million individual tax returns this year, similar to last year’s numbers. But with fewer hands on deck and new rules in play, taxpayers might want to start preparing early. Is the IRS equipped to handle this? Or will 2026 be the year taxpayers feel the strain? Let us know your thoughts in the comments—this is one tax season you won’t want to ignore!
