If you have been paying attention to the news about the IRS in the recent past, you are likely to have mixed emotions. On the positive side, the agency has been making major personnel reductions, losing over 25,000 employees in 2025. On the negative side, the IRS is presently actively seeking to plug major holes ahead of the next 2026 filing season. Allow me to break down what is happening and what could happen to taxpayers like you.
Massive staff cutback and its implications
In the earlier part of this year, the Internal Revenue Service saw a string of early retirements and terminations as part of a broader initiative of the Department of Government Efficiency (DOGE) to streamline federal agencies. While the aim was to make the government more efficient, the reality has turned out to be far more complex. As of May 2025, the IRS lost approximately 25,700 workers.
That is an enormous number for an agency that processes millions of tax returns each year. Naturally, experts started raising warning alarms, indicating the reduction of such a massive workforce will have an impact on service levels amid the peak tax season. The majority feared extended wait times for taxpayer assistance, delayed processing of returns, and slower responses to inquiries.
IRS seeks to reverse the trend
Now the better news. According to the Washington Post and the Journal of Accountancy stories, the IRS is moving toward recalling some of its workers. Those who have taken early retirement or deferred resignation are being offered a chance to return to work for the agency, especially in jobs regarded as key.
The Federal News Network reports that the IRS wants to bring back 700 officials and agents who once left the agency. Internal memos indicate that IRS management acknowledged that they “laid off too many people” and are now implementing procedures to fill gaps in key positions. This includes not only rehiring, but detailing, reassignments, and deep hiring to have mission-critical capabilities available.
Challenges ahead for 2026
Despite these actions, the IRS still has actual issues ahead as it enters the next tax season. The agency has experienced leadership turnover in abundance. Billy Long left the agency barely two months following his confirmation, for instance, and Scott Bessent is now acting commissioner—the seventh to lead the IRS in 2025. Most recently, Bessent replaced three top executives who oversaw online tax services and tax-exempt organizations, with promises of more turnover at the top.
All this is coming at a moment when it’s most important. The IRS is also weighing public feedback about free tax-filing services like the widely used Free File program. There’s ongoing debate about whether the service should be provided by the government or the private sector. Any interruption to the program would affect millions of taxpayers who rely on it every year.
What This Means for Taxpayers
So what does it mean to you? The IRS attempt at bringing in main positions and rehiring experienced employees is a positive move.
But still, the agency has a short window. Even with 700 employees returning and more in the pipeline, the IRS will have to juggle staff problems, leadership changes, and the flood of calls and filings that come during tax season. Experts warn that service breakdowns are still a risk, especially for complex tax issues or for people who need one-on-one assistance.
Looking ahead
The IRS is cognizant of the stakes. By acting to backfill openings and add to its workforce, the agency is going out of its way to stabilize operations and not leave taxpayers waiting. It’s too early to have a clear sense of just how smooth the 2026 tax season will be, but the IRS’s proactive steps are a sign the agency is committed to serving the public despite last year’s missteps.
For you taxpayers out there, it’s a reminder to stay current, file early if you are able, and explore online resources offered by the IRS. By doing so, you can prevent delays and make your filing easier.
The IRS has likely had a rough year in 2025, but the effort to recall employees and plug critical gaps is appreciated. Provided all goes according to schedule, you may find that doing your taxes next year is a smoother, more responsive process.
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