GAO found IRS processed about 98 percent of 177 million returns in the 2026 filing season, matching last year's rate, but paper returns took roughly twice as long due to unavailable systems and reduced staffing.
Following a 2025 executive order phasing out paper check refunds, IRS sent 4.2 million notices asking taxpayers for direct deposit information, delaying refunds for those who didn't respond.
Customer service cratered: average phone wait time jumped from 3 to 8 minutes, IRS answered 2 million fewer calls, and in-person visits dropped 15 percent as offices thinned out.
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