If you’ve tried to contact the IRS lately, you’ve probably felt some frustration firsthand: long hold times, dropped calls, delayed correspondence, and unclear answers. And for us, as a tax firm, we are also encountering the same roadblocks and challenges. And unfortunately, the situation won’t be improving anytime soon.
Between recent staffing cuts at the IRS and the rollout of the One Big Beautiful Bill (OBBB) – now being referred to by lawmakers as the Working Families Tax Cuts – the IRS is facing unprecedented challenges heading into the 2026 tax filing season.
Here’s what’s going on, why it matters, and how you can get ahead of it.
The One Big Beautiful Bill (OBBB) / Working Families Tax Cuts
One major factor disrupting this filing season is the passage of the One Big Beautiful Bill (OBBB), now officially known as the Working Families Tax Cuts.
This legislation is the most sweeping rewrite of individual and small business tax rules since the Tax Cuts and Jobs Act (TCJA). It includes a wide range of updates that the IRS must now integrate into its online systems before tax season can begin.
These updates require major form redesigns, software reprogramming, and internal system testing, all of which take time, and will be challenging with reduced federal staffing numbers.
To address these issues, IRS Commissioner Billy Long has already warned that the 2026 filing season may not open until around Presidents Day (February 17, 2026) – nearly a month later than usual.
To read more about how the Working Families Tax cut may affect you, read our blog post here. To watch a recorded webinar on the topic, you can visit our YouTube. We have a presentation tailored for businesses as well as one focused on the provisions impacting individuals.
IRS Staffing Struggles Compound the Problem
The IRS is, and for a long time, has been strained beyond its needs. Over the past year, it lost between 25,000–26,000 employees, roughly one quarter of its workforce.
- Taxpayer Services (customer support, call centers, correspondence) have been hardest hit.
- IT staff, who handle updates to forms and systems, were reduced by over 2,000 employees.
The agency has since paused planned layoffs and begun rehiring efforts, but it’s unclear whether these changes will be in place soon enough to stabilize operations before filing season begins.
What This Means for Taxpayers
Even under normal circumstances, the IRS takes time to update its systems after new laws are passed. But this year, expect the process to move more slowly than usual.
You May See:
- A delayed start to filing season (likely mid-February)
- Longer refund turnaround times
- Increased processing errors or IRS notices as new systems roll out
- Slower resolution of correspondence or disputes
If you depend on an early refund or need IRS verification (like transcript requests or EIN applications), plan for extra time.
How You Can Prepare Now
Even though much is outside your control, there are ways to minimize the impact of these disruptions.
- Get Organized Early
Start gathering your documents now: W-2s, 1099s, K-1s, bank and brokerage statements, property records, and charitable contribution receipts. If you’re a new client, please bring a copy of last year’s return so we can compare data and avoid missing any carryovers or prior year details.
- Notify Us of Major Life Changes
Let us know early about major life events such as marriage, divorce, birth/adoption, selling a home, starting a business, or large income changes. These events often affect your filing status, deductions, or credit eligibility, and proactive planning helps prevent errors or amendments later.
- Expect Limited IRS Response Times
If you receive an IRS notice or need clarification, response times will likely be slower than usual. Please forward any IRS letters to us immediately so we get them into the IRS processing queue sooner rather than later.
Track Your Refund or Return
You can always track your refund status directly:
- IRS Refund Status: irs.gov/wheres-my-refund
- Call: 1-800-829-1040 (Individuals) or 1-800-829-4933 (Businesses)
- Connecticut Refund Status: portal.ct.gov/drs/individuals/individual-tax-page/status-of-refund
- Call: 860-297-5962, select Income Tax
You can also find these links anytime under Client Tools → Refund Status on our website.
The best thing you can do? Be proactive. Gather your documentation early, stay organized, and keep communications open. Even in a chaotic year, early tax preparation can help keep your tax season experience run smoothly and keep your stress level to the lowest possible!
