The IRS staff shortages have become a growing concern as a new government watchdog report warns of serious risks to the next tax filing season. The Treasury Inspector General for Tax Administration (TIGTA) released an alarming update stating that the Internal Revenue Service (IRS) is facing significant human resource challenges that could delay tax return processing and customer service for millions of Americans in the upcoming 2026 tax season.
This news comes at a time when the IRS is under pressure to modernize its systems, improve taxpayer experiences, and implement major new programs funded by the Inflation Reduction Act (IRA). But with ongoing attrition, slow hiring rates, and increased responsibilities, the IRS may not be fully prepared for the next round of tax returns.
What the Report Says About IRS Staff Shortages
The recent TIGTA report paints a concerning picture of the IRS workforce. It outlines how staffing shortages could result in delayed tax refunds, increased call wait times, and decreased efficiency in handling taxpayer issues. According to the report:
- Over 12,000 IRS employees are eligible to retire in the next year.
- Hiring has not kept pace with the rate of staff departures.
- Critical positions in customer service and return processing remain unfilled.
- The agency may not meet its goals for improving taxpayer service.
This combination of challenges could severely impact the upcoming tax season and beyond.
Why the IRS Is Losing Staff So Quickly
There are several reasons behind the growing IRS staff shortages. First, the agency has a high number of aging workers. A significant portion of its workforce is eligible for retirement, and many are choosing to leave due to increased workloads and stress.
Second, the IRS faces difficulties in hiring and retaining qualified talent. The federal hiring process is slow, and competitive private sector wages make it harder to attract experienced professionals, especially in IT and data roles.
Third, the IRS has been stretched thin over the last few years due to the pandemic, emergency relief programs, and expanded enforcement initiatives. Many employees have burned out after years of increased demands and limited resources.
The Ripple Effect on Taxpayers
IRS staff shortages don’t just affect the agency — they affect everyday taxpayers in very real ways. Here’s how:
1. Delayed Tax Refunds
If fewer employees are available to process returns, taxpayers could experience delays in receiving their refunds. In 2023 and 2024, millions of Americans waited weeks or even months for their money. That trend could continue or worsen in 2026.
2. Longer Wait Times for Support
Customer service call centers are already overwhelmed. IRS agents have struggled to answer calls quickly, with average wait times sometimes exceeding an hour. A smaller workforce could result in even slower responses.
3. Backlogs of Unprocessed Returns
The IRS still deals with backlog issues from past seasons. In 2024, the agency carried over millions of unprocessed paper returns. Without more staff, the IRS may be unable to reduce this backlog, leading to compounding delays.
4. Errors in Return Processing
A rushed or understaffed workforce is more likely to make mistakes. This increases the chances of tax return errors, incorrect notices, and rework — further slowing the process for everyone.
The Bigger Picture: Technology and Funding Still Aren’t Enough
In 2022, the Biden administration passed the Inflation Reduction Act, allocating nearly $80 billion to the IRS over 10 years. The goal was to modernize technology, improve customer service, and boost enforcement. While that funding has been partially reduced by political pushback, it remains a significant investment.
However, money alone won’t fix the staffing problem.
- Technology upgrades take time to implement and still require trained professionals to manage.
- Automated systems cannot replace human judgment for complex tax issues.
- Recruitment efforts must be faster and more competitive to fill vital roles.
TIGTA’s report emphasizes that without solving the human capital crisis, even the best funding and technology may fall short of expectations.
A Look at the Numbers
Here are some of the key figures that reveal the depth of the staffing crisis:
- IRS workforce dropped by nearly 23% between 2010 and 2020.
- The agency’s 2025 hiring goal is 10,000 new employees, but it hired less than half that number in 2024.
- Over 35% of current IRS employees are over the age of 55, indicating a looming wave of retirements.
- Only 13% of IRS job offers result in actual hires, often due to slow onboarding or competition from the private sector.
These numbers highlight a mismatch between what the IRS needs and what it currently has.
IRS Response and What They’re Doing About It
The IRS has acknowledged the challenge. In response to the TIGTA report, an IRS spokesperson said they are “making aggressive efforts to recruit and retain top talent” and working to streamline hiring processes. Some steps include:
- Launching fast-track hiring events to bring in employees more quickly.
- Offering remote work opportunities to attract a wider applicant pool.
- Investing in training programs to upskill existing employees.
- Creating employee incentives and recognition programs to reduce turnover.
However, experts warn that unless these efforts are dramatically scaled up and fully funded, they may not be enough before the next tax filing season begins.
Congressional Debate and Political Pressure
The topic of IRS staffing and funding has become deeply political. While Democrats argue for increased funding and support to improve IRS services, many Republicans have pushed back, citing concerns about government overreach and wasteful spending.
In fact, a portion of the IRS funding from the Inflation Reduction Act has already been clawed back as part of broader budget negotiations. That rollback could further complicate hiring and retention efforts.
This political tug-of-war adds uncertainty to the IRS’s future staffing plans and undermines long-term strategic goals.
What Can Taxpayers Expect in the 2026 Filing Season?
If the IRS staff shortages are not addressed quickly, taxpayers should prepare for a challenging 2026 tax season. Here’s what may be in store:
- Expect longer delays for both paper and e-filed returns.
- Be prepared for extended wait times if calling the IRS.
- Consider filing early to get ahead of the rush.
- Use IRS online tools as much as possible to avoid delays.
- Double-check your return for accuracy to reduce the need for human intervention.
Tax professionals also advise staying updated with IRS announcements and using reputable tax software to streamline the filing process.
Looking Ahead: What Needs to Change
To prevent a full-blown crisis in the next tax season, experts suggest several urgent actions:
1. Modernize the Hiring Process
The IRS must accelerate its federal hiring system. This could involve new legislation allowing fast-track hiring or streamlining current civil service requirements.
2. Increase Salaries for High-Demand Roles
The agency should offer competitive wages for IT, data analytics, and auditing roles — fields where the private sector outbids the IRS.
3. Focus on Retention
It’s not enough to hire — the IRS must keep skilled workers. This means addressing job satisfaction, burnout, and career development.
4. Expand Remote Work
By allowing more remote positions, the IRS can tap into talent across the country, not just in Washington, D.C., or other field offices.
5. Stable, Long-Term Funding
The agency needs consistent funding to plan and build a reliable workforce, not just short bursts of investment tied to political negotiations.
Final Thoughts
The IRS staff shortages represent more than just an internal problem — they are a national issue that affects every taxpayer. With millions depending on timely refunds and accurate return processing, the consequences of underfunding and understaffing are far-reaching.
The TIGTA report is a wake-up call for both policymakers and the public. The upcoming tax filing season could become one of the most difficult in years unless immediate and serious action is taken to rebuild the IRS workforce.
For taxpayers, the best course of action is to stay informed, prepare early, and be patient — because unless the staffing gap is closed soon, the 2026 tax season could be filled with uncertainty and delays.
