Federal News
GAO Warns IRS Workforce Risks
March 17, 2026
The Government Accountability Office (GAO) has issued multiple warnings regarding the Internal Revenue Service's (IRS) significant workforce challenges following the departure of over 17,000 staff members in 2025. This exodus has created severe operational risks, including potential delays in tax processing, backlog management, and modernization efforts. The GAO highlights the IRS's lack of a strategic plan to reduce the backlog of taxpayer correspondence, which remains above pre-pandemic levels, and calls for the establishment of a comprehensive workforce strategy and implementation team to mitigate these risks. IRS leadership acknowledges the challenges but has yet to present a concrete plan to address staffing and operational backlogs, raising concerns about the agency's ability to maintain timely service and effective tax administration during the ongoing filing seasons.
- Why this matters: Procurement professionals should anticipate increased demand for workforce support services, modernization contracts, and technology solutions aimed at backlog reduction and operational efficiency at the IRS.
- The absence of a strategic workforce plan signals potential upcoming solicitations for consulting, staffing augmentation, and IT modernization to stabilize IRS operations.
- Contractors specializing in document processing, customer service platforms, and workforce management technologies may find emerging opportunities as the IRS seeks to address these operational risks.
- Agencies and vendors should prepare for evolving procurement requirements focused on sustaining critical IRS functions amid staffing shortages and modernization uncertainties.
Given the lack of a long-term contract and the fact that increased scanning could affect staffing needs, officials were unsure how much return processing staff there should be for the 2026 filing season.
— IRS officials
The 2025 filing season reached a successful conclusion, and we are now delivering the 2026 filing season, which started without delay on January 26, 2026.
— Frank J. Bisignano, CEO of IRS
Agencies
Internal Revenue Service, Government Accountability Office
Locations
Sources
- IRS Staff Exodus Threatens โSevere Risks,โ GAO Says · meritalk · Mar 17
- IRS Staff Exodus Threatens โSevere Risks,โ GAO Says · meritalk · Mar 17
- IRS has no plan to reduce backlog of taxpayer correspondence, watchdog finds | Federal News Network · Federal News Network · Mar 17
- IRS Staff Exodus Threatens โSevere Risks,โ GAO Says โ MeriTalk · MeriTalk · Mar 17
- IRS has no plan to reduce backlog of taxpayer correspondence, watchdog finds | Federal News Network · Federal News Network · Mar 17