IRS Excels at Refunds but Fails on Calls, Watchdog Reports

By the Editorial Team · Thursday, June 25, 2026

The IRS managed to process and issue 2026 tax refunds more efficiently than expected despite a nearly 30% reduction in its workforce. However, reduced customer service staffing led to significant difficulties for taxpayers needing direct assistance, with many calls going unanswered.

The Internal Revenue Service successfully processed and issued tax refunds more efficiently than anticipated during the 2026 filing season, despite significant reductions in its workforce, according to a report from the agency's independent watchdog. However, taxpayers seeking direct assistance faced notable challenges due to diminished customer service capacity.

Erin M. Collins, the national taxpayer advocate, highlighted the contrasting experiences of taxpayers in her mid-year assessment. While the majority of filers submitted returns and received refunds without serious delays, those requiring personalized help often encountered difficulties contacting IRS representatives.

The IRS began 2025 with approximately 102,000 employees but concluded the year with about 74,000 after a series of firings and layoffs driven by the Department of Government Efficiency, led by Elon Musk. This reduction followed earlier disruptions during the 2025 season, when IRS workers were barred from accepting buyouts until after the tax deadline, contributing to significant staff attrition, particularly among customer service personnel.

Collins had previously cautioned that the 2026 tax season would pose substantial challenges due to the ongoing workforce decline. Nevertheless, improvements in technology and increased automation played a crucial role in preventing widespread processing failures, enabling smoother handling of the bulk of refund requests.

Despite these operational gains, the IRS struggled substantially with telephone support. The report found that only 59% of calls to major accounts management lines were answered. More specialized lines exhibited even poorer response rates; compliance-related inquiries were connected 34% of the time, while the hotline for identity theft victims had an answer rate of just 19%.

The disparity between processing efficiency and customer service availability underscores ongoing tensions within the agency as it adapts to a smaller workforce. Taxpayers requiring direct assistance remain vulnerable to long wait times or unanswered calls, raising concerns about the IRS's ability to meet all taxpayer needs amid continued staffing challenges.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.