The IRS lost a third of its staff. Here’s what that means for your case.

Between January 2025 and January 2026, more than 31,000 IRS employees left — about 30% of the workforce. The watchdogs say the damage shows up in backlogs, phone lines, and refund delays. Here’s how to navigate it.

The numbers are stark. Between January 2025 and January 2026, roughly 31,000 IRS employees left through buyouts, resignations, and layoffs — about 30% of the workforce. The Treasury Inspector General for Tax Administration found the agency was authorized to hire 1,900 submission-processing employees for the 2026 filing season but onboarded only about 800 — a 58% shortfall. The division that answers taxpayer questions missed its hiring goal by 34%.

What taxpayers actually feel

• Processing inventories hit 2.4 million by late February, and nearly 75% of amended returns were classified as over-aged — past standard processing times.
• The National Taxpayer Advocate reports the IRS answered 21% of calls this filing season (down from 25%), with a 14-minute average wait.
• Fully staffed Taxpayer Assistance Centers fell from 102 to 42.
• Paper returns and amended returns are the slowest lanes. One Ohio couple profiled this summer waited five months for a refund.

What this means if you owe — or are owed

Two things can be true at once: the agency is slower, and your obligations haven’t changed. Interest and penalties keep accruing while your letter sits in a pile. If you’re waiting on a refund, e-filing with direct deposit is your fastest route. If you owe, don’t let the backlog become your strategy — unfiled returns and unpaid balances don’t improve with age, and the IRS’s enforcement tools still work fine. And if you’re in an active dispute — an audit, a levy threat, a payment plan — don’t assume silence means safety. Correspondence backlogs have slowed Collection Due Process hearings and installment agreement processing too. A filed request protects your rights even while the queue crawls; an unfiled one doesn’t.

How to protect yourself in the slow lane

• E-file everything. Paper is where returns go to wait.
• Pay electronically. IRS Direct Pay is free and creates a confirmation number — no “lost check” disputes.
• Track, don’t guess. “Where’s My Refund” and your IRS online account show real status; the phone line is a 14-minute gamble.
• Keep copies of everything you send. If the IRS loses your response in a backlog, your proof of mailing is your leverage.
• Don’t ignore notices. Deadlines on IRS letters are statutory — the agency’s staffing problems don’t extend yours.

Alex Volkov, CPA is a New York-licensed CPA with over two decades in accounting, focused on resolving IRS tax problems — back taxes, liens, levies, garnishments, and audits — for individuals and businesses nationwide.