The Internal Revenue Service has opened the 2026 tax filing season, but a new watchdog memo suggests the agency may face operational strain in the months ahead. According to a report by Forbes, the IRS is beginning the season under pressure from staffing cuts, large backlogs and technology delays.
In a recent memorandum, the Treasury Inspector General for Tax Administration (TIGTA) warned that the filing season will start under “strained conditions,” shaped by reduced staffing, hiring and training delays, and incomplete modernization efforts. The IRS expects to receive around 164 million individual federal income tax returns for tax year 2025 ahead of the April 15 deadline.
Backlogs still well above normal
As of December 2025, the IRS had roughly two million individual return items in inventory, including amended returns, paper-filed returns, and taxpayer correspondence, as per TIGTA. That figure is 129% higher than pre-pandemic levels.
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The backlog includes more than 500,000 amended returns and nearly 300,000 paper returns. TIGTA cautioned that these delays pose a “substantial risk” of slower processing and refunds during the 2026 filing season, potentially increasing government interest costs on delayed refunds.
Staffing shortages and slow hiring
Workforce reductions have compounded those challenges. As of October 2025, overall IRS staffing had declined by about 19% which is roughly 19,000 employees — following funding clawbacks and internal cuts.
In the Submission Processing division, which handles original and amended returns, staffing was down 17% compared to October 2021.
Although the IRS received approval to hire 2,200 employees for the 2026 filing season, only 50 had been onboarded by late December 2025, according to TIGTA.
Training can take 60 to 80 days, meaning many hires may not be fully prepared during peak filing weeks.
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Service levels and tech readiness in question
The IRS plans to lower its telephone service level goal to 70% for 2026, down from 85% in recent years. TIGTA noted the agency has not achieved a 70% service level since 2022.
The memo also flagged a roughly 16% decline in IT staffing, raising concerns that key system updates may not be fully tested before the filing season begins.
While modernization initiatives are underway, TIGTA warned that many improvements will not be realized in time to materially improve the taxpayer experience this year.