Concerns have been rising about whether the IRS will be prepared for the upcoming tax season. Lawmakers and oversight officials are warning that major cuts to the IRS budget and staff might affect how the agency enforces laws and helps taxpayers, specifically those with lower incomes. Additionally, Senate Democrats led by Ron Wyden said in a letter to Treasury Secretary Scott Bessent that funding would most likely lead to more automated audits and less experienced agents handling complex cases that involve wealthy individuals and large companies. 

The senators stated, “As we debate funding levels, no one has to theorize about the likely effects of steep budget cuts on IRS enforcement.” They pointed to previous periods when lower funding resulted in fewer audits of millionaires and corporations. They also warned that, based on past experience, enforcement could shift toward simpler audits that target working Americans.

According to Accounting Today, the Treasury Inspector General for Tax Administration (TIGTA) released a memo outlining concerns before the filing season. TIGTA said IRS staffing is back to late 2021 levels, but backlogs of unprocessed returns and taxpayer correspondence have grown. The memo warned that these delays could mean slower refunds and higher interest costs, noting the IRS paid over $2.6 billion in interest on delayed refunds last year.

Both the senators and TIGTA also expressed concerns about the IRS relying more on artificial intelligence to address staff shortages. They questioned if these systems can truly replace trained staff without shifting enforcement priorities or making service worse during an already challenging filing season.