GAO finds IRS processed 98% of 2026 returns amid staffing shortfalls

The Government Accountability Office reports the Internal Revenue Service processed about 98 percent of the 177 million individual and business returns received during the 2026 filing season, matching the rate from the prior year. The filing season ran from January 26, 2026, to April 15, 2026.

Paper return processing slowed markedly. On average, an individual paper return took about a month to process, about twice as long as last year. The IRS sent about half of paper returns to outside vendors for scanning and electronic submission, but the reduced staffing and unavailable processing systems delayed updates.

Refund issuance was also delayed for taxpayers who did not provide direct-deposit information. As of early May 2026, the agency sent about 4.2 million notices requesting banking details; taxpayers who did not respond within 30 days would receive a paper-check refund after 6 weeks.

Customer-service metrics shifted toward self-service. The IRS received about 3 million fewer calls than last year (about 28 million), but automation answered a higher share of calls - 41 percent versus 34 percent previously. Customer-service representatives answered about 2 million fewer telephone calls, and average wait time rose to 8 minutes from 3 minutes in 2025. In-person service declined by about 15 percent, with 626,000 taxpayers served compared to 740,000 the year before.

The GAO study, GAO-26-109074, provides preliminary observations on IRS performance and includes interviews with agency officials. For further details, contact Jessica Lucas-Judy at [email protected].