Tax Watchdog Erin M. Collins Warns IRS Faces 2026 Filing Strains
Erin M. Collins says the IRS workforce is down 27% and complex 2025 tax law changes may hinder help for taxpayers during the 2026 filing season.
Overview
National Taxpayer Advocate Erin M. Collins released her annual report to Congress on Jan. 28, 2026, saying the IRS faces challenges from a 27% workforce reduction and complex tax law changes retroactive to 2025.
The 2026 filing season began Jan. 26, 2026, and Collins warned that success will hinge on how well the IRS assists millions of taxpayers amid more than 100 retroactive tax changes, according to the report.
IRS CEO Frank Bisignano and Treasury Secretary Scott Bessent said they expect a smooth filing season and Bisignano announced an executive reorganization to the agency’s roughly 74,000 employees, while TIGTA deputy Diana M. Tengesdal raised staffing and backlog concerns.
The IRS workforce fell from about 102,000 at the start of 2025 to roughly 74,000 by year-end, a 27% decline that included an estimated 22% drop in customer service representatives, officials said.
An executive order phasing out paper refund checks will generally deliver refunds electronically and the IRS may hold refunds for up to six weeks for taxpayers who do not provide direct deposit, Collins warned.
Analysis
Center-leaning sources frame this story as a cautionary institutional crisis by foregrounding watchdog warnings and quantifying staffing losses (e.g., '27% reduction'), while still including reassurances from IRS leaders. Editorial choices — lede placement, emphasizing leadership turnover and law changes, and selective emphasis on staffing metrics — create a risk-focused narrative despite balancing quotes.
Sources (3)
FAQ
The reduction from about 102,000 employees at the start of 2025 to roughly 74,000 by year-end resulted from a series of firings, layoffs, and buyouts under the Trump administration and the Department of Government Efficiency.
Over 100 retroactive tax changes from the 'One Big Beautiful Bill' Act, signed into law on July 4, 2025, require significant IRS programming, guidance, form changes, and taxpayer education.
Customer service representatives dropped by 22%, leaving fewer and less experienced staff to handle over 100 million phone calls and millions of correspondence pieces annually.
An executive order is phasing out paper refund checks, shifting to electronic delivery, with potential holds of up to six weeks for those not providing direct deposit information.
IRS CEO Frank Bisignano announced a reorganization of executive leadership to about 74,000 employees and expressed confidence in a successful filing season, while Treasury Secretary Scott Bessent promised substantial tax refunds.
History
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