January 26 marks the beginning of the 2026 tax filing season, when the IRS will start accepting and processing tax returns for the year 2025. Taxpayers must submit their returns by the April 15 deadline to avoid penalties and interest.
The tax season requires U.S. citizens and permanent residents to file a tax return if their income exceeds a certain threshold for the previous year. However, tax experts and independent IRS watchdogs have expressed concerns that this year’s filing process may face challenges due to a significant reduction in the number of tax collection workers. This reduction was influenced by planned layoffs and buyouts which were part of initiatives proposed by Elon Musk’s Department of Government Efficiency.
IRS Chief Executive Officer Frank Bisignano, appointed in October, reassured the public of the agency’s commitment, stating, “The IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public.” Bisignano also emphasized that the IRS has updated its information systems to handle new tax laws effectively, aiming for a smooth processing of returns this filing season.
The IRS will be tasked with implementing key provisions from a recently signed tax and spending package that affects the 2025 tax year, likely increasing inquiries from taxpayers as the agency updates forms accordingly. Acting IRS Commissioner Scott Bessent noted that the Trump administration is focused on creating a successful tax filing season for 2025 and expressed confidence in the IRS’s ability to deliver favorable results for both businesses and consumers.
The agency anticipates receiving around 164 million individual income tax returns this year, maintaining figures similar to the prior year. Historical IRS data indicates that the average tax refund was $3,167, and Bessent has mentioned that the adjustments in Republican tax law may lead to larger refunds in 2026.
According to a report from the National Taxpayer Advocate released in June, the IRS’s workforce has drastically decreased from 102,113 employees during the Biden administration to just 75,702 now. This report cautions that with a 26% reduction in staff and substantial tax law changes approaching, the 2026 tax filing season could experience difficulties.
With the new leadership at the IRS aiming for a seamless processing experience amidst these challenges, there remains hope that improvements in the system will benefit taxpayers this season.