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IRS did better than expected in tax season after slashing staff, except on the phone, watchdog says
Technology and automation helped the agency avoid a meltdown, but phone service remained weak and more than 500,000 identity-theft victims faced long waits.
The IRS performed better than expected during the 2026 tax season, successfully issuing refunds despite significant workforce reductions, according to a report released Wednesday.
Following layoffs directed by the Department of Government Efficiency, the agency's workforce shrank from about 102,000 to about 74,000 employees last year, led by Elon Musk.
Despite Technology improvements preventing total meltdown, phone support struggled; only 59% of major account calls were answered, while Identity theft victims face resolution times of roughly 20 months.
Erin Collins, who leads the IRS's independent watchdog, warned that Taxpayers needing human help were left behind, as compliance and Identity theft lines answered just 34% and 19% of calls.
Service gaps remain a longstanding agency issue; earlier this year, Collins warned that worker exodus would continue presenting challenges for Taxpayers encountering filing problems.