2026 Filing Season: Preliminary Observations on IRS Performance | U.S. GAO
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GAO-26-109074
Published: Jul 23, 2026. Publicly Released: Aug 10, 2026.
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Fast Facts
IRS processed about 98% of the 177 million tax returns received during the 2026 tax filing season. But it entered the 2026 season with fewer staff and new tax changes.
Our ongoing work looks at IRS's performance during the 2026 filing season. So far, we've found:
Paper returns took longer to process because IRS didn't have staff to update some IT systems
As paper checks were being phased out, IRS delayed millions of refunds for taxpayers who didn't provide direct deposit information
More taxpayers used self-service options and fewer used in-person IRS services
Fewer customer service staff contributed to fewer calls answered and longer wait times
A paper check from the Department of the Treasury on top of a paper copy of the individual tax return Form 1040.
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Highlights
What GAO Found
The Internal Revenue Service’s (IRS) overall processing performance during the 2026 filing season was similar to 2025. IRS processed about 98 percent of the 177 million individual and business returns that it received during the 2026 filing season—the same percentage as last year. However, according to IRS, unavailable processing systems and reduced staffing delayed paper return processing. IRS said the systems were not available due in part to recent staff losses that delayed programming updates. IRS sent about half of paper returns to outside vendors to scan and submit to IRS electronically, but paper return processing took longer than prior years. For example, on average, it took IRS a month to process an individual paper return—about twice as long as last year.
In addition to paper return processing delays, refund issuance was delayed for some taxpayers. In response to a 2025 executive order, IRS began phasing out paper check refunds. As a result, IRS delayed millions of refunds for taxpayers who did not provide direct deposit information. IRS officials told GAO that, as of early May 2026, they sent about 4.2 million notices to taxpayers requesting banking information to issue their refunds via direct deposit. Taxpayers who did not respond within 30 days would receive a refund by paper check after 6 weeks.
Volumes and Timeliness to Issue Refunds via Paper Check and Direct Deposit, as of Early April, 2024–2026
Note: See figure 3 in GAO-26-109074 for information on comparing data across years.
More taxpayers used self-service options during the 2026 filing...