‘Less people and better results:’ IRS CEO says filing season goals met after 27% staffing cut

Key Points:

• The IRS reported a successful 2026 filing season, processing over 134 million individual tax returns and issuing more than 80 million refunds, with 98% of returns filed electronically and over 90% of electronic filers receiving refunds within 21 days.
• Despite losing 27% of its workforce under the Trump administration and falling short of hiring goals, the IRS claims improved performance through technology modernization, reassigning about 1,500 IT and HR employees to frontline filing duties, and increasing online taxpayer support.
• IRS CEO Frank Bisignano emphasized the agency's transformation toward digital services, noting a 60% increase in website visits and a decrease in phone inquiries, while also acknowledging challenges such as miscalculated overtime wages and delays for about 1.5 million taxpayers receiving paper check refunds.
• Congressional Democrats criticized staffing cuts for harming customer service and enforcement, while Republicans highlighted the smooth filing season; Bisignano defended the agency's enforcement revenue increase of 12% despite reduced personnel.
• The IRS discontinued its Direct File platform, citing redundancy and cost concerns, and is pursuing further modernization efforts to create a more digital IRS, with preparations for the next filing season already underway.