It’s tax season — and even though there are new tax savings under the One Big Beautiful Bill Act (OBBBA), seeing a refund in your account may take longer this year.
With 27% fewer IRS employees in 2026 than last year, delays in processing the expected 164 million returns could be imminent. So, how will the IRS slow down affect your refund?
Read more: 4 ways the One Big Beautiful Bill Act can lower your taxes
The IRS started in 2025 with 102,000 employees and ended with about 74,000. The most affected departments were Direct File which saw a 88% reduction in staff and Online Services which was reduced by 100%, along with many other departments which lost large percentages of staff.
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The small business/self-employed department, which helps small businesses and self-employed taxpayers understand their tax obligations, has been cut by more than 37%.
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The taxpayer services department, which helps taxpayers understand and comply with tax laws, was cut by 21%.
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The information technology (IT) department, which assists employees with IT services and solutions, has been reduced by 25%.
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Departments responsible for processing original and amended tax returns, resolving tax errors and fraud, assisting taxpayers by telephone and in person, and updating computer systems faced a 17 percent reduction in staff.
Traditionally, the IRS hires seasonal workers to fill certain positions, but in late 2025 the government shutdown and changes to the hiring process delayed that.
As of December 2025, the department that processes initial and amended returns and resolves tax errors was down to 2% of the staff it planned to hire. Even if they can hire more workers, the hike lasts up to 80 days, keeping them out of this year’s tax filing season.
The biggest impact on taxpayers – and refunds – involves customer service, with significant reductions in the number of staff who answer about 100 million phone calls and deal with millions of correspondence with taxpayers.
The department that helps taxpayers by phone and in person has managed to hire 66% of the staff it needs this tax season. And even if you get someone on the phone, that IRS employee may not be able to answer your questions. Due to time constraints, the IRS adjusted the training of these new employees, so now, they only screen calls, answer basic questions, and refer taxpayers to another department.
The One Big Beautiful Bill Act makes more than 100 changes to the tax code, further complicating the processing of tax returns. Erin M. Collins, national taxpayer advocate, said in her 2025 Annual Report to Congress: “Although the OBBB Act favors taxpayers because it increases the eligibility of certain deductions and benefits, the deductions and benefits are subject to difficult eligibility rules, income limits, and categories that will be difficult for taxpayers to understand and accurately understand the taxpayers. filing period.”
Many people will have questions about the OBBBA changes and try to reach out to the IRS for guidance. With reduced staffing, taxpayers may not get the help they need, which can cause errors on returns and delay refunds.
The impact of tax arrears and the effort to eliminate paperwork
A backlog of two million returns from previous filing years may delay the processing of this year’s returns. While the IRS kept thousands of employees on the job during the government shutdown in October and November of 2025, they didn’t make much progress in the backlog.
Additionally, there has been a push to end paper returns and move files electronically, but the effort has been delayed by staff losses. The automated processes that are expected to be in place to convert the submitted documents to electronics have not been finalized, which may cause delays for taxpayers.
Read more: Here’s how to file a paper return
According to the latest IRS filing season statistics, use of the IRS website increased more than 49% over the same period last year. With fewer employees, online tools may be your best bet for tax-related information. Here are some options:
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Let us help you: This page has information and links for things like how to file a return, how to amend one, how to pay, and much more.
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How to file your taxes: Step-by-step: You’ll find guidance on the filing process, as well as links to request an extension, get the latest tax changes, and where to go to file.
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Interactive Tax Assistant: You can search for articles about filing requirements, forms, deductions, credits, and more.
Filing electronically and receiving any refund via direct deposit is the fastest way to get your money. The IRS says most refunds are issued within 21 days and will go directly into a bank account. The agency also acknowledges that some will take longer and require further review.
You can check the status of your refund in three ways:
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Where’s My Refund?: You’ll need your Social Security number or tax ID number, expected refund amount, tax year, and your filing status before you can submit a request. The information on the website should be available within 24 hours after the IRS receives the e-filed return and four weeks after receiving the paper return.
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IRS2Go mobile app: You can also get free access to tax software and other help through the app.
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Individual IRS Online Account: After setting up an account, this will show balances, payments, tax records, and other information.
Read more: Where is my tax return? 4 reasons the IRS might be holding you back.
Staff shortages may delay some refunds, but the IRS still expects most to be issued within 21 days from the date of the email.
You can check the status of your refund online. Have your Social Security number or tax ID number, expected refund amount, tax year, and your status for manual filing. The information on the website should be available within 24 hours after the IRS receives the e-filed return and four weeks after receiving the paper return.
Normally, the IRS hires more employees to help with tax filing, but that process has been disrupted this season for several reasons, including the government shutdown in late 2025.
