IRS did better than expected in tax season after slashing staff, except on the phone, watchdog says

The IRS performed better than expected in processing refunds during the 2026 tax season despite significant staff reductions but struggled with phone support, particularly for identity theft victims. The IRS reduced its workforce from 102,000 to 74,000 employees, and only 19% of calls to identity theft lines were answered, with victims waiting nearly two years for assistance.