The National Taxpayer Advocate reported, that most individual taxpayers experienced a smooth filing process during the 2025 tax year, but warned that the 2026 filing season may present greater challenges for taxpayers who encounter problems. The report attributed these concerns to a significant reduction in IRS staffing, leadership turnover and the implementation of numerous complex tax law changes that apply retroactively.
The report stated that individuals who filed electronically and selected direct deposit generally received refunds without delay. However, individuals filing paper returns or affected by identity theft or errors faced longer processing times and limited access to assistance. The report also identified new deductions for tips, overtime pay and auto loan interest, which contain detailed eligibility rules that may increase confusion, raise IRS call volumes and delay refunds.
