Trump's Budget Bill Could Complicate 2026 Tax Filing Season After IRS Cuts, Watchdog Warns
- An independent watchdog reported on June 25, 2025, that the IRS workforce in the United States decreased by approximately 25% over the past year.
- The staffing reduction followed a Republican budget proposal cutting IRS funding by 20% next year and stripping Biden-era supplemental funding, causing workforce decline.
- The IRS is managing about 387,000 unresolved identity theft cases as of the 2025 filing season end, with case resolution delays up to 20 months.
- Erin M. Collins stated the 2025 season was successful but warned that prolonged identity theft case resolution times remain unacceptably long, risking a rocky 2026 filing season.
- The workforce cuts and retroactive tax provisions could complicate 2026 filings and impact millions of taxpayers and revenue collection if new legislative measures proceed.
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The budget bill defended by President Donald Trump could complicate next year's tax filing season after the Internal Revenue Service (known as IRS) lost a quarter of its employees due to staff cuts, an independent oversight body reported on Wednesday.

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Trump's budget bill could complicate 2026 tax filing season after IRS cuts, watchdog warns
The budget bill championed by President Donald Trump could complicate next year’s tax filing season after the IRS lost one-quarter of its employees through staffing cuts.
·United States
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Total News Sources42
Leaning Left5Leaning Right3Center26Last UpdatedBias Distribution76% Center
Bias Distribution
- 76% of the sources are Center
76% Center
15%
C 76%
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