Economy

Tax Season Begins with Scam Alerts and Watchdog Warnings Over IRS Challenges

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Jan 28, 2026

THE BARE STORY

As the IRS begins accepting 2025 tax returns, National Taxpayer Advocate Erin Collins has warned Congress that the 2026 filing season may present "greater challenges" for some taxpayers compared to the previous year. In her annual report, Collins attributed potential difficulties to a 27% reduction in the IRS workforce, leadership turnover, and the implementation of complex tax law changes enacted by President Donald Trump. While Collins noted that the process should remain "seamless" for those filing error-free electronic returns with direct deposit, she expressed concern regarding the agency's ability to assist filers who encounter problems.

In contrast to the watchdog's concerns, IRS Chief Executive Officer Frank Bisignano stated earlier this month that the agency is prepared to assist taxpayers. However, a separate report from the Treasury Inspector General for Tax Administration (TIGTA) echoed concerns about readiness amid staffing cuts, suggesting a greater reliance on self-service tools. Experts cited in the reports also noted that some filers might receive larger refunds this year due to 2025 tax cuts, as the IRS did not update tax withholding tables following the midyear changes.

Simultaneously, the Federal Trade Commission (FTC) has issued alerts regarding "phishing" and "smishing" scams designed to steal personal data. The FTC warned of fraudulent emails, texts, and phone calls posing as government agencies claiming to process refunds or demanding payment for back taxes. Officials emphasized that the IRS and state tax offices do not initiate contact through digital messages or social media to request personal information. Filers are advised to report suspicious communications and verify legitimate refund status using the official IRS "Where's My Refund" tool.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Reduced staffing levels may hinder taxpayer support National Taxpayer Advocate Erin Collins warned that a 27% reduction in the IRS workforce could contribute to a challenging filing season. This perspective is supported by a separate report from the Treasury Inspector General for Tax Administration (TIGTA), which echoed concerns about the agency's readiness amidst these staffing cuts.

• Leadership turnover and new laws add complexity Collins identified leadership turnover within the agency and the implementation of complex tax law changes enacted by President Donald Trump as factors that could create difficulties. These structural and legislative shifts are cited as primary reasons why the 2026 filing season may present greater challenges than the previous year.

• Personal assistance could be difficult to access While automated processes may work well, Collins expressed specific concern regarding the agency's ability to assist filers who encounter problems with their returns. Additionally, the TIGTA report suggested that due to staffing issues, there may be a greater reliance on self-service tools rather than direct support.

How it may affect me

As a U.S. reader:

• You could receive a larger tax refund than anticipated this filing season because the IRS did not update withholding tables to reflect midyear 2025 tax cuts.

• You may encounter difficulties receiving personal assistance due to a 27% workforce reduction, potentially forcing a greater reliance on self-service tools for problem resolution.

• You should remain vigilant against phishing and smishing scams, as fraudsters may pose as government agencies demanding payments or personal data via email, text, or phone.

• Your filing process will likely remain seamless if you submit error-free electronic returns with direct deposit, avoiding potential delays caused by complex new tax laws.

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