WASHINGTON – The 2026 federal tax season commences on January 26, marking the date when the Internal Revenue Service (IRS) begins to accept and process tax returns for the 2025 income year. Taxpayers across the United States are reminded that the annual filing deadline to submit returns and avoid penalties and interest is April 15.
Typically, most American citizens and permanent residents who earn above a prescribed income threshold are required to file a federal tax return each year. Preparations for the current season are under way amid an evolving environment for the IRS, affected by workforce reductions and recent legislative tax modifications.
The IRS has encountered significant workforce attrition, with tens of thousands of employees departing through planned layoffs and buyouts. These staffing changes coincide with directives associated with the Department of Government Efficiency, instituted under Elon Musk's leadership. Despite these challenges, IRS Chief Executive Officer Frank Bisignano, appointed in October, expressed confidence in the agency’s personnel and technological preparedness.
“The IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public,” Bisignano stated. He further noted, “IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season.”
Bisignano concurrently serves as commissioner of the Social Security Administration, balancing dual leadership roles within federal agencies.
The introduction of major provisions from a tax and spending package approved by Republicans last summer adds complexity to this filing cycle. Certain elements of this legislation apply retroactively to the 2025 tax year, necessitating IRS updates to tax forms and likely prompting additional inquiries from taxpayers seeking clarity on their returns.
Acting IRS Commissioner Scott Bessent affirmed the agency’s commitment, saying, “President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025. I am confident in our ability to deliver results and drive growth for businesses and consumers alike.”
For this filing season, IRS projections estimate the receipt of approximately 164 million individual income tax returns—consistent with last year’s volume. According to IRS data, the average tax refund issued previously was $3,167. Bessent mentioned that the forthcoming tax law changes are expected to result in larger average refunds in 2026.
In its June report to Congress, the National Taxpayer Advocate highlighted a substantial workforce decline at the IRS, noting a drop from 102,113 employees at the conclusion of the Biden administration to 75,702 currently. The agency’s official website does not currently reflect up-to-date staffing figures.
Importantly, IRS staff engaged in the previous tax season were restricted from accepting Trump administration buyout offers until after the April 15 deadline in 2025, a measure intended to minimize disruption during peak filing periods.
Despite these precautions, the National Taxpayer Advocate’s report issued a cautionary note on the upcoming season’s outlook: “With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season.” Erin M. Collins, who leads the body charged with defending taxpayers’ rights, underscored the potential for operational challenges as a result.