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Summary:
For the 2026 filing season, the IRS insists most people who e-file simple returns with direct deposit will receive refunds quickly. Behind that message, the agency’s own National Taxpayer Advocate flags a different reality: a 27% workforce cut, retroactive tax law changes, and ongoing delays for anyone with a problematic return or dispute. New deductions created by the One Big Beautiful Bill Act are highly technical, which could heighten audit risk and refund holds for wage earners, businesses, and high-income taxpayers.
Tax season in America runs on a familiar script: promises from Washington, pressure on taxpayers, and an IRS that wields broad power with uneven execution. The 2026 filing season raises the stakes. The IRS’s own National Taxpayer Advocate is warning that when something goes wrong this year, the system may grind even slower while the government keeps full leverage over your money.
The Official Line: “Smooth” for Simple Returns
In its 2025 Annual Report to Congress, the National Taxpayer Advocate reports that taxpayers “generally fared well” last year and predicts that most people who e-file, use direct deposit, and escape IRS filters will see quick processing and timely refunds.
The IRS processed more than 165 million individual returns in 2025. About 94% came in electronically, and 63% of filers received refunds averaging $3,167. Yet 3.6 million refunds ran beyond standard processing times, with e-filers waiting around seven weeks and paper filers waiting about 14.
When Something Goes Wrong, Expect Friction
The same report describes hundreds of thousands of identity theft victims waiting more than 21 months for case resolution, delays that the Advocate called “unconscionable.” Those delays hit lower-income taxpayers especially hard, but the risk reaches anyone whose return trips an IRS system flag.
The IRS cut its total workforce by about 27% in 2025, with meaningful losses in Taxpayer Services, Appeals, Small Business/Self-Employed, and even the Taxpayer Advocate Service itself. Customer service representatives, who answer phones and work cases, dropped by about 22%. Fewer, less experienced employees now stand between taxpayers and issues like frozen refunds, audit notices, and collection actions.
Disputes, Delays, and the Fine Print on Your Rights
The report highlights long processing times for amended returns: over 13 months on average for business amended returns and more than five months for individuals. When the IRS disallows refund claims, it often sends notices that are unclear and fail to spell out key court deadlines. Taxpayers risk forfeiting refunds because the notice from the government leaves out critical timing information.
Meanwhile, the IRS is outsourcing scanning of millions of paper-filed returns to private contractors, despite a recent history of a contractor stealing sensitive taxpayer data. The Taxpayer Advocate warns of new operational and confidentiality risks created by the “Zero Paper Initiative.” That matters for anyone facing audits, adjustments, or investigations built on IRS records that may come from third-party scanning.
Protect Your Money Before the IRS Takes the First Step
If your 2026 filing triggers an audit, a frozen refund, aggressive collection, or even a criminal inquiry, you face a government agency with shrinking service capacity and expanding rulebooks. Leaving it to phone calls, online accounts, or form letters cedes control to the IRS.
Weisberg Kainen Mark represents taxpayers in civil and criminal tax disputes, including audits, tax litigation, voluntary disclosure, business and payroll tax issues, IRS collection alternatives, and white-collar investigations. For help protecting your money and your record in this year’s tax season, call (305) 374-5544.
FAQ: 2026 Tax Season & IRS Problems
How do the new 2025 tax law changes affect audit risk?
New deductions tied to tips, overtime, auto loan interest, and higher state and local tax limits require precise eligibility. Errors, unsupported positions, or aggressive claims may draw IRS attention, especially for small businesses and higher-income filers who already sit in higher audit-risk categories.
What should I do if I get an unclear IRS notice or refund disallowance?
Treat every notice as time-sensitive and keep the envelope and all pages. Because IRS letters often omit crucial deadlines, speak with a tax controversy attorney promptly to evaluate your options before you lose rights to challenge the government’s position.
Weisberg Kainen Mark, PL
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