American taxpayers are facing delayed returns and slower than usual service this tax season, and employees without direct tax experience are being reassigned on an unvoluntary basis in an effort to prepare for this year’s tax season, according to a warning from the Internal Revenue Service (IRS) Inspector General.

The reduction in IRS staffing – down nearly 20 percent since this time last year – as well as leadership turnover and delays resulting from the government shutdown are contributing to the concerns voiced in reports by the National Taxpayer Advocate and the Treasury Inspector General for Tax Administration (TIGTA). The coming tax season is also more complicated due to massive tax law changes required by the One Big Beautiful Bill.

A readiness memo issued by Diana M. Tengesdal, Deputy Inspector General for Audit, reads, “Specifically, the key filing season programs lost approximately 8,300 (17 percent) employees. These programs are responsible for processing original and amended tax returns, resolving tax return errors, assisting taxpayers on the telephone and in-person, stopping tax-related fraud before refunds are issued, and updating IRS computer systems.”

The report identifies several initiatives the IRS is implementing to offset staffing losses, including:

• The Zero Paper Initiative, converting incoming paper tax returns, correspondence and more into a digital format to reduce processing times and lower costs;
• Automated processing of Forms 1040X and others; and,
• Development of Taxpayer 360 to make it faster and easier for employees to assist taxpayers.

However, they also warn these initiatives may not benefit the 2026 filing season.