How the IRS Performed During Tax Season

Dow Jones06-24

Tax refunds flowed smoothly for most Americans, but there were some notable speed bumps during this year's filing season, according to a new report.

"For millions of taxpayers, the filing season was frustrating, confusing and financially disruptive," wrote Erin Collins, the national taxpayer advocate inside the IRS.

The agency faced a tough task: implementing a new tax law with 27% fewer employees than in 2025. Still, Collins described the season as largely successful.

Here are some highlights:

Refunds. For taxpayers who filed electronically and requested direct deposit, the IRS provided a "smooth, seamless experience," Collins wrote. The IRS sent more than 90 million refunds, up 5%, and the agency paid out 17% more in dollars. That was largely due to tax-law changes.

Telephone Service. The IRS received 4% fewer telephone calls-and about 20% fewer people reached a representative. Average hold time increased to 14 minutes from nine minutes.

Paper Checks. The IRS sent 2.2 million paper checks through mid-May, down from 8.4 million in 2025. The agency's cost-cutting effort to push people toward direct deposit slowed down checks, and Collins warned of the negative impact on lower-income households.

Backlogs. The IRS ended the filing season with longer paperwork backlogs than in 2025. For example, it had 1.3 million unprocessed pieces of account adjustment and correspondence as of mid-April, up from 749,000 a year earlier.

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