The 2026 tax filing season opened this week under a cloud of uncertainty. The Internal Revenue Service, which started 2025 with approximately 102,000 employees, now operates with roughly 74,000—a 26% reduction driven by the Department of Government Efficiency's aggressive workforce restructuring. The National Taxpayer Advocate is warning that taxpayers who encounter problems could face significant delays.

"The IRS is simultaneously confronting a reduction of 27% of its workforce, leadership turnover, and the implementation of extensive and complex tax law changes," the Taxpayer Advocate noted in a mid-year report to Congress. "There are risks to this year's filing season."

Understanding the Workforce Reduction

The IRS workforce cuts occurred in waves throughout 2025, accelerating after DOGE personnel were granted access to agency systems in the spring. The reductions included:

  • Voluntary buyouts: Thousands of experienced employees accepted early retirement or separation packages
  • Involuntary separations: Additional employees were laid off as part of restructuring
  • Hiring freeze: Normal replacement hiring was halted, accelerating natural attrition
  • Contractor reductions: Third-party support for customer service and IT was scaled back

The timing proved particularly problematic. Many customer service workers who handled taxpayer inquiries last year have now departed, leaving a significant gap in the agency's ability to respond to questions and resolve issues.

What This Means for Taxpayers

For the majority of filers—those with straightforward returns who file electronically and receive direct deposit—the impact may be minimal. The IRS's automated systems can process routine returns without human intervention, and electronic filers typically receive refunds within 21 days.

The challenges emerge when something goes wrong:

  • Phone wait times: Taxpayers who call the IRS help line may face extended waits or disconnections
  • Correspondence delays: Paper mail to the IRS could take longer to process than in previous years
  • Complex return issues: Returns flagged for review may sit longer before resolution
  • Identity theft cases: Victims of tax-related identity theft could face extended delays in resolving fraudulent filings

"Taxpayers might want to lower their expectations and prepare for unanswered phone calls to the IRS and delays in tax refunds."

— Janet Holtzblatt, Urban-Brookings Tax Policy Center

New Tax Law Complications

Compounding the workforce challenges, the 2026 filing season is the first under the "One Big Beautiful Bill" passed last year. The legislation includes significant changes that both taxpayers and IRS systems must navigate:

  • Expanded standard deduction: Higher amounts for all filing statuses
  • Modified child tax credit: Changes to income thresholds and phase-outs
  • New deductions: Tip income and overtime exemptions for eligible workers
  • SALT cap changes: Modified state and local tax deduction limits

Tax professionals report that the combination of new rules and reduced IRS support has created confusion. Taxpayers with unusual situations may struggle to find definitive guidance, and practitioners face longer waits when seeking clarification from the agency.

DOGE at the IRS: Security Concerns

Beyond workforce reductions, the presence of DOGE personnel at the IRS has raised concerns about taxpayer data security. Senators from both parties have written to Treasury Secretary Bessent expressing alarm about non-IRS employees potentially accessing sensitive tax information.

The concerns include:

  • Data access: Reports that DOGE personnel have accessed IRS systems containing taxpayer information
  • System integrity: Worries that changes to IRS technology could inadvertently disrupt refund processing
  • Privacy protections: Questions about whether proper safeguards exist for sensitive financial data

Treasury has defended the DOGE presence as necessary for identifying inefficiencies and waste, but the concerns have not been fully addressed.

Refund Timing Expectations

Despite the challenges, the IRS maintains that most refunds will be issued on normal timelines. The agency's official guidance states:

  • Electronic filers: Refunds typically within 21 days of accepted return
  • Paper filers: 6-8 weeks for processing, potentially longer this year
  • Returns requiring review: Variable timing, could be extended compared to prior years

For taxpayers anxious about their refunds, the "Where's My Refund?" tool on IRS.gov remains the most reliable way to track status. The tool updates daily for most returns.

Protecting Yourself This Tax Season

Given the circumstances, tax professionals recommend several strategies to minimize potential problems:

File electronically: E-filed returns process faster and have lower error rates than paper returns. The IRS can typically verify information and issue refunds without human review.

Choose direct deposit: Paper checks face additional delays for printing and mailing. Direct deposit puts refunds in your account faster.

Double-check everything: Errors trigger manual review, which could mean significant delays this year. Verify Social Security numbers, income figures, and calculations before submitting.

File early: Getting your return in before peak season reduces the chance of delays. The filing deadline is April 15, 2026, but waiting until the last minute increases risk.

Document thoroughly: Keep copies of all forms and supporting documents. If questions arise, you'll need this information readily available.

Be patient: If you do need to contact the IRS, expect longer wait times. The agency recommends online tools and resources before calling.

The Bigger Picture

The 2026 filing season serves as a real-world test of DOGE's premise that federal agencies can operate effectively with substantially fewer workers. Critics argue the workforce cuts were too deep, too fast, potentially compromising core agency functions. Supporters contend the IRS was overstaffed and that technology can compensate for fewer humans.

For the approximately 150 million individual tax returns expected this year, the answer will emerge over coming months. If refunds flow smoothly and problems get resolved, DOGE's approach gains validation. If widespread delays and service failures materialize, the human cost of efficiency initiatives becomes harder to ignore.

Either way, this year's tax season will be unlike any in recent memory—a high-stakes experiment affecting virtually every American household.