Taxpayer Advocate Service Releases Mid-Year Report, Cites Persistent Issues

IRS employee abuses

“The IRS continues to fail hardworking American taxpayers because of inefficiency and targeting. Biased audit practices and politicized enforcement are hurting both businesses and individuals.”

In its biannual report to Congress last week, the National Taxpayer Advocate Service (TAS) detailed the IRS's performance during the 2025 filing season and outlined challenges and objectives for 2026. Unsurprisingly, TAS reported the prevalence of issues that have plagued the IRS for years. Issues like refund delays for identity theft victims and Employee Retention Credit claim processing persisted throughout the 2025 filing season, and, as the report details, even greater issues will arise ahead of 2026 if key reforms are not instituted.

Modernization is one of the most pressing issues yet to be addressed. The lack of automation grounds the problem, and despite the agency’s commitment to enhancing its capabilities, there is nothing to show for these efforts. Lack of adequate technology impedes every facet of service, from untimely delays to vague and miscalculated audits. The IRS cannot improve the taxpayer experience with outdated systems incompatible with the modern world.

The report, in its objectives for 2026, details the need to improve the FOIA request process, of particular note to AIA. AIA’s FOIA request has been stonewalled by the IRS and is still pending. The agency brazenly misses deadlines and fails to communicate meaningful updates. This lack of transparency is a primary concern of AIA.

AIA is committed to holding the IRS accountable to its stated mission of providing “top quality service” and serving taxpayers with fairness.

Read the full report here.

If you, or someone you know, has experienced a specific IRS abuse and wish to flag the instance for potential inclusion in future Abuses of the Week, contact us with the details at the following email: info@irsaccountability.org.