The IRS will begin accepting 2025 income tax returns on Jan. 26, opening a filing season complicated by a 26% reduction in agency staffing and retroactive tax law changes in Republicans’ spending package enacted last summer. The deadline to file and avoid penalties and interest remains April 15. The agency expects to receive roughly 164 million individual income tax returns, on par with last year.
The agency’s own independent watchdog has warned that the staffing losses — from 102,113 workers at the end of the Biden administration to 75,702, according to the National Taxpayer Advocate — combined with new and retroactive tax law provisions, could make the 2026 season rocky for filers and the agency alike.
Workforce concerns
“With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season,” said Erin M. Collins, who leads the National Taxpayer Advocate, the organization assigned to protect taxpayers’ rights.
The June 2025 National Taxpayer Advocate report to Congress first raised the warning. Workforce reductions were spurred by planned layoffs and buyouts connected to Elon Musk’s Department of Government Efficiency. IRS employees who worked the 2025 filing season were barred from accepting buyout offers until after the April 15, 2025, filing deadline.
Agency response
IRS Chief Executive Officer Frank Bisignano, who was named to that position in October and also serves as commissioner of the Social Security Administration, said the agency is prepared to handle the volume. “The IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public,” Bisignano said. “At the same time, IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season.”
Acting IRS Commissioner Scott Bessent, in a news release, said: “President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025. I am confident in our ability to deliver results and drive growth for businesses and consumers alike.” Bessent has also said on several occasions that the effects of Republican tax law will result in larger refunds in 2026. The average refund last year was $3,167, according to IRS data.
New tax law provisions
The IRS will also be responsible for implementing major provisions of the Republican tax and spending package signed into law last summer. Several provisions in that law retroactively affect the 2025 tax year, which the AP reported is likely to generate more questions from filers and required the IRS to update tax forms ahead of the Jan. 26 start.