National Taxpayer Advocate Erin M. Collins today released the 2025 Annual Report to Congress, acknowledging improvements in IRS taxpayer service but also highlighting upcoming challenges, particularly delays in processing amended returns and confusion surrounding the phasing out of paper refund checks.
“Over the past five years, I have had the opportunity to closely observe the extraordinary amount of planning, coordination, and sustained effort required each year to deliver a successful filing season. Filing season is not a single event; it is a year-round undertaking that depends on the alignment of technology, staffing, training, legal guidance, and operational execution across the IRS that begins six to 12 months before the start of the filing season. When this alignment works well, taxpayers experience predictability and timely service. When it does not, the consequences are immediate and sometimes financially devastating.”
Reduced Staffing and Tax Law Changes Create Challenges
In her preface, she emphasizes challenges ahead for the IRS such as reduced staffing and significant tax law changes. Collins writes, “As the IRS considers its hiring model, it should emphasize process improvements and strategic investments in technology that improve the taxpayer experience, reduce unnecessary burden, and ensure staffing resources are aligned with mission-critical functions that support both compliance and fair treatment of taxpayers.”
Most Serious Problems
By law, the report must identify the ten most serious problems taxpayers face in their dealings with the IRS and make administrative and legislative recommendations to address those problems. Two of the most critical issues noted are:
- Refund delays and unclear and confusing disallowance notices harm taxpayers and jeopardize their rights to administrative and judicial review.
- Outdated paper processes and procurement delays harm taxpayers.
In addition to refund and processing delays, the report identifies eight other serious taxpayer problems, including:
- The IRS does not accurately measure the quality of its telephone service.
- Online accounts for tax professionals lack critical functionality required to effectively represent taxpayers.
- Systemic failures undermine taxpayer rights to representation, due process, and quality service.
Legislative Recommendations: the Purple Book
The National Taxpayer Advocate’s 2026 Purple Book proposes 71 legislative recommendations intended to strengthen taxpayer rights and improve tax administration. Among the recommendations:
- Authorize the IRS to establish minimum competency standards for federal tax return preparers and revoke the identification numbers of sanctioned preparers.
- Expand the U.S. Tax Court’s jurisdiction to hear refund cases.
- Enable the Low Income Taxpayer Clinic Program to assist more taxpayers in controversies with the IRS.
- Require the IRS to timely process claims for refund or credit.
- Allow taxpayers to claim the Child Tax Credit and Earned Income Tax Credit for a child who meets all statutory requirements except having a Social Security number by the due date of the tax return.
Other Report Highlights
This year’s report also contains:
- A taxpayer rights and service assessment that presents performance measures and other relevant data;
- A description of TAS’s case advocacy and systemic advocacy operations; and
- A discussion of the ten federal tax issues most frequently litigated in court last year.
Visit https://www.taxpayeradvocate.irs.gov/AnnualReport2025 for more information.
About the Taxpayer Advocate Service
The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Learn more at TaxpayerAdvocate.irs.gov or call 877-777-4778. Get updates on tax topics by following TAS on social media at: facebook.com/YourVoiceAtIRS, X.com/YourVoiceatIRS, Linkedin.com/company/taxpayer-advocate-service, and YouTube.com/TASNTA.