Watchdog warns IRS faces severe readiness gaps for 2026 tax season after DOGE cuts

A government watchdog issued warnings in early February that the IRS faced significant challenges for the 2026 tax filing season after DOGE-directed cuts eliminated approximately 27% of the agency's workforce over the prior year. The recently passed FY2026 appropriations bill imposed a 12% cut to IRS base funding, the largest in history. With roughly 1,500 HR and IT workers reassigned to process returns — and their training not completing until after April 15 — agency insiders warned of backlogs and data security risks.