Trump's Budget Bill Could Complicate 2026 Tax Filing Season After Irs Cuts, Watchdog Warns

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trumps 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, an independent watchdog reported Wednesday.

The IRS workforce has fallen from 102,113 workers to 75,702 over the past year, according to the latest National Taxpayer Advocate report to Congress. The report Wednesday offered the first official numbers on the IRS job losses associated with Elon Musk's Department of Government Efficiency.

Most of the employees took the "fork in the road" resignation offer from DOGE rather than waiting to get laid off.

Some of the findings from the report:

Taxpayers will likely see effects of staffing reductions