IRS Under Pressure: Refund Delays, Staffing Issues, and Chatbot Concerns

The 2026 tax filing season has gone relatively smoothly for many taxpayers, according to the IRS National Taxpayer Advocate. Most taxpayers were able to file their returns and receive their refunds without significant delays. That’s notable considering the IRS has been dealing with staffing reductions, leadership changes, outdated technology, and other challenges that could have affected the agency’s ability to process returns efficiently. However, not everyone has had the same experience.

Some Taxpayers Are Still Waiting Months for Refunds

Certain taxpayers are seeing their refunds delayed for months because their returns are being flagged by IRS screening systems.

This can include:

• Victims of identity theft

• Taxpayers who don't provide bank account information for direct deposit

• People who make errors on their tax returns

• Taxpayers whose returns require additional review

For taxpayers dealing with these issues, getting answers from the IRS can be another challenge. In many cases, people who call the IRS may have difficulty reaching a live representative who can help resolve their problem.

The IRS is also still experiencing delays in processing paper correspondence from taxpayers.

Are IRS Chatbots Giving Accurate Information?

Another concern involves the IRS's use of chat applications and chatbots to assist taxpayers. The Treasury Department's inspectors found that the IRS does not currently have sufficient performance measures to determine how accurate or effective these tools are. In other words, there are concerns about whether taxpayers may sometimes receive incorrect or incomplete information—but the IRS doesn't currently have a reliable system for measuring the problem. The review focused on chat applications used within the IRS's automated collection system, which handles taxpayer questions involving issues such as unpaid balances and delinquent tax returns. Despite the lack of established performance measurements, the IRS continued using these tools and expanded their use in 2025, eventually making them a permanent part of its operations.

What Did Inspectors Find?

Treasury inspectors identified several discrepancies in the information provided through these chat applications that the IRS was unable to explain. The IRS has said it plans to develop a process to evaluate the accuracy and completeness of its chat tools using both measurable performance data and qualitative reviews.

The Bottom Line

While the 2026 filing season has been relatively smooth for many taxpayers, some people are still experiencing significant refund and correspondence delays. At the same time, the IRS is increasingly relying on automated tools to handle taxpayer questions. Until the agency has stronger systems in place to measure the accuracy of those tools, taxpayers may want to be cautious about relying solely on automated responses when dealing with complicated tax issues. If you're dealing with a delayed refund, identity theft issue, or another tax problem that hasn't been resolved, consider contacting a tax professional who can help you understand your options and determine what steps to take next.