Staffing, system gaps

The IRS processed about 98% of the 177 million individual and business returns it received, the same share as in 2025, with 95% filed electronically. Still, paper filers waited longer. The average time to process a paper individual income tax return climbed to 30 days, well above the agency’s 13-day goal and up from 16 days in 2025, the GAO found in a report made available August 10.

Business payroll tax returns took even longer, averaging 72 days against a 32-day policy.

The GAO tied the delays to unavailable systems and reduced staffing. The IRS’ individual paper processing system could not handle tax year 2025 returns for the first six weeks of the season, and its scanning system for business paper returns was unavailable the entire season. Officials said the systems were not ready because of the recent loss of experienced IT acquisition staff.

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