Taxpayers could face significant hurdles during the 2026 tax filing season after the Internal Revenue Service (IRS) reduced its workforce by more than one-quarter in the past year, according to a new report delivered to Congress.

Opinion: Plante Moran's Brett Bissonnette says that encouraging e-filing, expanding tax services, and showing some kindness can help tax practitioners navigate the large staffing reductions in the IRS' Taxpayer Services Division.

The IRS has already lost more than 26,000 employees this year—and the administration’s latest budget proposal would shrink the agency even further. Meanwhile, more than half of the Inflation Reduction Act’s original IRS funding has been clawed back through congressional rescissions.

Under the new 'One Big Beautiful Bill,' the IRS is permanently ending the moving expense deduction for most taxpayers after December 31, 2025, with exceptions for some government workers.

Following over 260,000 federal job losses since January, new budget plans propose eliminating an additional 107,000 roles.

Explore the impact of potential federal layoffs on the unemployment system, focusing on IRS and U.S. jobs. Is job security at risk? What does this mean for the job market?

The Trump administration set out to cut thousands of jobs at the IRS this year, aided by Elon Musk’s Department ... “Now, maybe the cuts to staffing alone may not have had a huge impact on the filing season if all else held equal,” said Alex ...

The budget bill championed by Trump could complicate next year’s tax filing season after the IRS lost one-quarter of its employees through staffing cuts. That's what an independent watchdog says ...