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North America
National Taxpayer Advocate Erin Collins has warned that the upcoming tax season will present greater challenges for taxpayers due to significant staffing reductions and complex tax law changes. In her annual report to Congress, Ms. Collins noted that the IRS's workforce decreased by 27% from 102,000 to 74,000 employees, impacting taxpayer services. "Entering 2026, the landscape is markedly different," Ms. Collins stated, highlighting the simultaneous challenges of reduced staff and the implementation of new tax laws from the One Big Beautiful Bill Act. While most taxpayers are expected to receive refunds on time, those needing extra assistance may face difficulties, especially as the IRS phases out paper checks. The report emphasizes the need for improved taxpayer service and efficient processing to avoid delays and confusion during the filing season.
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