Wait, Who Is the National Taxpayer Advocate?

The Erin Collins (a dear colleague and friend). Think of her as the IRS’s internal watchdog for you, the taxpayer. She’s independent, brutally honest, and just dropped a 60+ page “Mid-Year Report to Congress” about how the 2025 tax season went—and what’s coming for 2026.

Spoiler: This next season could get rough. (Side note: I told everyone so)

First, the (limited) Good News

2025 went better than expected:

• Over 141 million tax returns filed.

• 95%+ were e-filed.

• 62% of folks got refunds.

• The IRS even got ahead on processing some credits.

Honestly? Not bad. I bet the field examination side can’t say that.

Now for the Warning Flags

The Advocate didn’t hold back. Erin never does. She believes it is every employees responsibility to speak-up and be heard. Here's what has her sounding the alarm:

1. IRS Cuts & DRP Causedduction Employees

Yep, nearly one in four employees is gone—some via buyouts, others just burnt out and done.

• Key teams like IT and taxpayer services were hit hardest.

• That means fewer hands to answer calls, fix tech bugs, and process returns.

• If Congress passes new tax laws (which it might—retroactively!), the IRS will have to update forms, train people, and launch new systems… with way fewer people.

  
  

Not ideal.

2. Identity Theft Cases Still Taking Forever

• Over 2.1 million returns were flagged by fraud filters.

• 387,000 identity theft victims are still stuck in the system.

• On average? It’s taking 20 months to resolve.

Imagine waiting almost two years for your refund because your return got flagged. Erin Collins says we’ve got to do better—her office is pushing to cut it down to 4 months. Fingers crossed.

3. New Tax Laws May Hit Mid-Season

Congress is toying with tax changes that could be retroactive to January 2025.

Translation: you could file your taxes early… only to learn the rules changed after you hit “submit.”

If this sounds like a mess—it is. The Advocate is waving a red flag to lawmakers: Don’t make the IRS change horses midstream with a skeleton crew.

Now, I have personally lived through retroactive tax law changes with limited to no notice. Can we remember ACA, TCJA, now potentially a OBB-BA? The truth is the IRS will be severely handicapped in implementation, the opening of filing season could be delayed, and more and more amended returns to be filed…. Ok OK… Starting 10/1, I won’t be complaining about the last one – but the other two… disaster.

4. Tech’s Getting Better… Slowly

Some bright-ish spots:

• IRS is digitizing more returns (this means scanning paper).

• Secure messaging and online accounts are improving (this means at one point they were pointless, but getting better).

• But the Advocate says we’re still way behind where we should be (the political savvy way of saying it).

  
  

She’s pushing for “digital-first” tools so people can upload docs, get help faster, and stop relying on snail mail or faxes (yes, still a thing at the IRS). I actually was surprised only some forms can be filed by “digital fax”.  I keep thinking – when ExFed Tax is over the start-up phase – and open to paying customers – will I have to buy a fax machine?

Anyhow. . .

So What Does This Mean for You?

If you’re a taxpayer (or should be and haven't been), here’s what to do next:

• File early—especially if you usually get a refund. Beat the backlog.

• Double-check your identity info. A small mismatch can trigger fraud flags.

• Stay tuned for late-breaking tax law changes—don’t assume the 2025 rules will hold (or let us handle it for the 2025 filing period).

• Use your IRS online account—secure messaging may be your best friend this year (or let us handle it.)

  
  

The most important needs its own little heading...

Hire a licensed CPA—preferably one with a law degree or deep IRS experience. 

Look—2026 is shaping up to be anything but simple. If you’ve got:

• Side gigs, business income, or multiple state tax

• Delayed refunds, pending credits, or past-due returns

• Questions about ERC claims, penalties, or filing status

  
  

…you need more than just a TurboTax session, google, and a prayer. You need someone who’s walked the walk.

They’ll know how to:

• Spot red flags before the IRS does

• Navigate identity verification

• React quickly to retroactive law changes

• Defend you in case of audits or errors

  
  

Because let’s be honest: the IRS used to eat amateurs for breakfast. Not because they were always right, but because the taxpayers didn’t know any better. Now through IRS cuts, they’re short-staffed, overworked and glitchy—but still serious about enforcement.

Final Word from the Tax Trenches

We’ve been on both sides—inside the IRS and now out here with you. And this report? It's a warning shot.

The 2026 filing season will favor the informed, the early, and the well-represented.

So, get ready,

Get organized,

And get yourself an exfed who knows how to play chess—not checkers.