The National Taxpayer Advocate’s latest report to Congress paints a mostly positive picture of the 2025 tax filing season, but warns of real risks ahead. 

According to a release from the taxpayer advocate, the IRS processed about 138 million individual returns this year, with 95 percent filed electronically. More than 62 percent resulted in refunds, and the average refund clocked in at just under $3,000. For most taxpayers, things ran smoothly. But not for everyone.

Looking ahead to 2026, staffing is a major concern. The IRS lost about 26 percent of its workforce between January and June, including deep cuts in its IT and Taxpayer Services divisions. To keep next tax season on track, the report says, the IRS will need to hire and train thousands of new employees in just a few months. 

Collins also recommended prioritizing three tech upgrades: improving online accounts, digitizing paper processes, and consolidating roughly 60 case management systems, changes she said could help the agency meet rising demands without burning its workforce.