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IRS Reduces Taxpayer Service Targets for 2026 Filing Season: What California Families Need to Know About Tax Compliance and Legal Protection

IRS Reduces Taxpayer Service Targets for 2026 Filing Season: What California Families Need to Know A

If you’re a California resident preparing to file your 2026 taxes, you need to understand how recent changes at the IRS could impact your ability to get help—and what mistakes could cost you if you can’t reach someone when you need guidance.

What’s Happening at the IRS Right Now?

The Internal Revenue Service has lowered its phone service expectations for the 2026 filing season, dropping its target from 85% to 70% of taxpayer calls answered. This comes after the agency lost approximately 19,000 employees—nearly 19% of its workforce—and failed to meet critical hiring goals for frontline staff.

According to a Treasury Inspector General for Tax Administration (TIGTA) report released in January 2026, the IRS is struggling to provide adequate taxpayer assistance at a time when California families need it most.

Why This Matters for California Taxpayers

Here’s what reduced IRS service levels mean for you in practical terms:

  • Longer wait times: Taxpayers are experiencing wait times of 30 minutes to 90 minutes to reach an IRS representative. In some cases, calls are automatically disconnected after extended holds.
  • Delayed callbacks: While the IRS offers callback options, it can take days for the agency to return your call.
  • Fewer in-person options: About 35 of the IRS’s 360 Taxpayer Assistance Centers were closed last month, with availability varying day-to-day.
  • Processing delays: Growing backlogs may delay tax refunds and could result in the IRS paying interest on late refunds.

    • The Real Risk: Guessing on Your Tax Returns

    Former IRS Commissioner Larry Gibbs highlighted a critical concern: “If taxpayers can’t get answers, they guess”. This is particularly problematic during the 2026 filing season because of major tax law changes under the One, Big Beautiful Bill Act passed in summer 2025.

    When California residents guess about tax obligations rather than receiving proper guidance, they risk:

  • Filing incorrect returns that trigger audits
  • Missing deductions or credits they’re entitled to
  • Facing penalties and interest on unpaid taxes
  • Creating complications for estate planning and wealth transfer strategies

    • How Staffing Shortages Are Creating Service Gaps

    The IRS’s hiring challenges are severe:

  • Only 2% of approved submission processing positions were filled by the end of 2025—just 50 new hires out of 2,200 approved positions
  • New hires in accounts management are now only trained to screen calls and answer basic refund questions, not handle complex tax inquiries
  • The agency met only 66% of its hiring goal for employees who answer taxpayer calls

    • Additionally, modernization projects meant to offset these staffing losses aren’t ready. The IRS’s Zero Paper Initiative has only digitized about 4% of paper returns, and the AI-powered Taxpayer 360 project is delayed with users reporting significant bugs.

    What This Means for Estate Planning and Asset Protection

    For California families engaged in estate planning, trust administration, or probate matters, reduced IRS service creates additional challenges:

  • Estate tax compliance: Executors and trustees may struggle to get guidance on complex estate tax filings
  • Trust administration: Questions about trust taxation and reporting requirements may go unanswered
  • Gift tax issues: Families implementing wealth transfer strategies need accurate guidance to avoid costly mistakes
  • Probate delays: Tax clearance requirements for estates may take longer to resolve

    • How to Protect Yourself During This Tax Season

    Given these service limitations, California residents should take proactive steps:

  • Document everything: Keep detailed records of all tax-related decisions and attempts to contact the IRS.
  • Seek professional guidance early: Don’t wait until the last minute to address complex tax questions, especially those involving estates, trusts, or significant asset transfers.
  • Review your estate plan: Ensure your estate planning documents account for current tax laws and consider how processing delays might impact your beneficiaries.
  • Plan for delays: If you’re expecting a refund or need tax clearance for an estate, build extra time into your financial planning.

    • The Budget Impact You Should Know About

    The situation is likely to worsen. The IRS faces a $1.1 billion budget cut (nearly 9%) in pending legislation, plus an $11.6 billion rescission of Inflation Reduction Act modernization funds. The agency’s original $80 billion allocation has already been cut roughly in half.

    How California Probate and Trust Can Help

    When the IRS can’t provide the guidance California families need, working with experienced estate planning and probate attorneys becomes essential. At California Probate and Trust, PC, we help clients navigate complex tax implications related to:

  • Estate and trust administration
  • Asset protection strategies that minimize tax exposure
  • Probate proceedings with tax compliance requirements
  • Wealth transfer planning under changing tax laws

    • Our team stays current on federal and California tax law changes so you don’t have to guess about your obligations. We provide the clarity and confidence you need to protect your family’s legacy—even when government resources fall short.

    Take Action Now

    Don’t let IRS service limitations put your financial future at risk. Schedule a free consultation with California Probate and Trust, PC to review your estate plan, assess tax implications, and ensure your family is protected regardless of government agency staffing challenges.

    Contact us today to discuss how we can help you navigate this challenging tax season and protect what matters most.

    Read the Full Federal News Network Article: After missing hiring goals, IRS dials back taxpayer phone assistance targets

    Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal or tax advice. The information contained herein is based on publicly available sources and is subject to change. Tax laws are complex and vary based on individual circumstances. California Probate and Trust, PC does not provide tax preparation or tax advisory services. For specific tax guidance, consult with a qualified tax professional or CPA. For estate planning, probate, and trust administration matters involving tax considerations, schedule a consultation with our attorneys to discuss your unique situation. This article does not create an attorney-client relationship.