AI Summary

Elon Musk’s Department of Government Efficiency cut more than a quarter of the IRS’s 100,000‑person workforce. In the 2026 tax season the agency processed 140.2 million individual returns and issued 90.4 million refunds, a slight decline from the previous year. The IRS called the season a success, but former acting Commissioner Douglas O’Donnell warned that the deep staffing cuts will have long‑term effects, compounded by a shrinking budget. He said the agency’s capacity to handle future tax work will be increasingly strained.

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