Tax season is upon us, but this year, getting a refund from the IRS might take longer than usual. With the implementation of the One Big Beautiful Bill Act (OBBBA) bringing new tax savings, the IRS is facing challenges due to understaffing. In fact, there are 27% fewer IRS employees in 2026 compared to the previous year, which could lead to delays in processing the expected 164 million tax returns.
The IRS started 2025 with 102,000 employees but finished the year with only about 74,000 employees. Departments like Direct File and Online Services were hit the hardest, with significant reductions in staff. For example, the Small business/self-employed department saw a reduction of over 37%, while the Taxpayer services department was reduced by 21%. Additionally, the Information technology (IT) department faced a 25% reduction in staff.
Traditionally, the IRS hires seasonal workers to help during the tax filing season. However, due to the late 2025 government shutdown and changes in the hiring process, the onboarding of new employees has been delayed. As of December 2025, the department responsible for processing returns and resolving errors had only onboarded 2% of the planned hires, with onboarding taking up to 80 days.
The impact of understaffing is most evident in customer service, where cuts have been made in the number of employees available to answer calls and handle taxpayer correspondence. This could result in delays, errors on returns, and further delays in refunds.
The OBBBA made over 100 changes to the tax code, further complicating tax return processing. Erin M. Collins, the national taxpayer advocate, highlighted the challenges of administering these complex changes accurately.
Efforts to eliminate paper returns and encourage electronic filing have also been hampered by workforce losses. Automated processes to convert paper filings to electronic ones have not been completed, potentially causing further delays for taxpayers.
Filing electronically and opting for direct deposit is the fastest way to receive a refund. The IRS states that most refunds are issued within 21 days and are directly deposited into the filer’s bank account. However, some refunds may take longer and require additional review.
To track the status of your refund, you can use online tools provided by the IRS, such as “Where’s My Refund?” or the IRS2Go mobile app. These tools allow you to check the status of your refund by providing basic information like your Social Security number, expected refund amount, tax year, and filing status.
Despite staffing shortages, the IRS still expects to issue most refunds within 21 days of e-filing. Additional workers are usually hired during the tax filing season, but this process has been hindered this year due to various factors, including the government shutdown in late 2025.
