Tax season this year went…surprisingly well, all things considered. Even though the IRS lost thousands of personnel and went through a revolving door of commissioners, 2025 still had “one of the most successful filing seasons in recent memory,” National Taxpayer Advocate Erin M. Collins wrote in her recent midyear report to Congress. The IRS processed more than 98% of individual tax returns, and achieved an 87% Level of Service on its phone lines, up from 63% last season. Heck, even CPAs said things went well overall. So the agency’s out of the woods, right? Not exactly. The IRS stands to lose around 26% of its workforce this year, Collins wrote, going from around 102,000 employees to less than 76,000. The full impact of the job cuts has yet to be felt, as many departing employees took deferred resignations and won’t leave until September. And the IRS is set to lose around 20% of its appropriated funding from Congress, which, coupled with decreased IRA funding, means a 37% budget cut altogether, Collins wrote. On top of this, the new budget bill just passed—and the IRS typically receives a higher volume of calls in years with tax law changes. Collins recommends the IRS hire “essential filing season employees” such as customer service representatives and processing personnel by the end of this summer so they can be trained in time for busy season ’26. “Especially in the short term,” she wrote, “the number of total IRS employees is less important than the number of trained employees.” Click here for more on the challenges the IRS is facing in 2026.—CV |