It’s tax season — and while there are new tax savings under the Big Beautiful Bill Act (OBBBA), it may take longer this year to see a refund in your account.
With 27% fewer IRS employees in 2026 than last year, delays in processing an expected 164 million returns may be on the horizon. So, how will less IRS staff affect your return?
Read more: 4 Ways A Big Beautiful Bill Can Lower Your Taxes
The IRS started with 102,000 employees in 2025 and ended with about 74,000. The hardest hit departments were Direct File with an 88% reduction in staff and Online Services with a 100% reduction, with many other departments losing large percentages of staff.
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The Small Business/Self-Employed Division, which helps small business and self-employed taxpayers understand their tax obligations, has been cut by more than 37%.
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The Taxpayer Services Division, which helps taxpayers understand and comply with tax laws, was cut by 21%.
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The information technology (IT) department, which helps employees with IT services and solutions, has been cut by 25%.
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Departments responsible for processing original and amended tax returns, resolving tax return errors and fraud, assisting taxpayers by telephone and in person, and updating computer systems are facing a 17 percent reduction in staff.
Traditionally, the IRS has hired seasonal workers to fill some positions, but the government shutdown and hiring process changes in late 2025 are delaying that.
By December 2025, the department that processes original and amended returns and resolves tax return errors has employed only 2% of its planned staff. Even if they can hire more workers, onboarding takes up to 80 days, keeping them out of this year’s tax-filing season.
The biggest impact on taxpayers — and refunds — involves customer service, with huge cuts in the number of employees who answer about 100 million phone calls and deal with millions of taxpayer letters and cases.
The department that helps taxpayers over the phone and in person was only able to get 66% of the employees it needs this tax season. And even if you get someone on the phone, an IRS employee may not be able to answer your questions. Due to time constraints, the IRS changed the training for these new employees, so now, they just screen calls, answer basic questions, and transfer taxpayers to another department.
The Big Beautiful Bill made more than 100 changes to the tax code, making the tax return process even more complicated. Erin M. Collins, National Taxpayer Advocate, said in her 2025 Annual Report to Congress: “While the OBBB Act is generally favorable to taxpayers in that it expands eligibility for certain deductions and benefits, the deductions and benefits are subject to complex eligibility rules, income limits, and difficulties for many taxpayers to understand. Especially during filing season.
Many people will have questions about the OBBBA changes and try to reach out to the IRS for guidance. With staff shortages, taxpayers may not get the help they need, which can lead to errors in filing returns and delayed returns.
Impact of tax returns and efforts to eliminate paper returns
The backlog of 2 million returns from previous filing years may slow this year’s return process. While the IRS kept thousands of employees on the job during the government shutdown in October and November 2025, they haven’t made much progress on the backlog.
In addition, efforts have been made to eliminate paper returns and filers to file electronically, but these efforts have been delayed due to the loss of manpower. The automated processes expected to be in place to convert paper files to electronic have not been completed, which could cause delays for taxpayers.
Read more: Here’s how to return the paper
According to statistics from the latest IRS filing season, IRS website usage is up 49% from the same time last year. With staff downsizing, online tools may be your best bet for tax-related information. Here are some options:
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Let us help you: This page has information and links about things like filing a return, how to amend, how to pay, and more.
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How to File Your Taxes: Step-by-Step: You’ll find a guide to the filing process, and links to request an extension, find the latest tax changes and where to file.
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Interactive Tax Assistant: You can search for articles on filing requirements, forms, deductions, credits and more.
Filing electronically and receiving your refund via direct deposit is the fastest way to get your money. The IRS says most refunds are issued within 21 days and go directly into a bank account. The agency also acknowledges that some will take longer and require additional review.
You can track the status of your refund in three ways:
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Where’s my refund?: You’ll need your Social Security number or tax identification number, the amount of your refund, the tax year, and your filing status before you can submit your request. Information on the website is due 24 hours after the IRS receives the mail return and four weeks after the paper return is received.
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IRS2Go Mobile App: You can also get free access to tax software and other help through the app.
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IRS Individual Online Account: After setting up the account, it will display balances, payments, tax records, and other information.
Read more: Where is my tax return? 4 Reasons the IRS May Withhold It
Staff shortages may delay some returns, but the IRS still expects most to be issued within 21 days of the e-filing date.
You can check the status of your refund online. Have your Social Security number or tax identification number, expected refund amount, tax year, and your filing status handy. Information on the website is due 24 hours after the IRS receives the mail return and four weeks after the paper return is received.
Normally, the IRS hires extra workers to help during tax filing season, but that process has been disrupted this season for several reasons, including the government shutdown in late 2025.
