The IRS faces potential delays in 2026 tax refunds due to new deductions for tips and overtime, coupled with significant staffing shortages and high turnover. Lawmakers, including Senator Elizabeth Warren, have urged the IRS to hire more employees, citing concerns about the agency's capacity to handle the upcoming filing season efficiently. These changes, stemming from legislation signed in July 2025, could impact millions of taxpayers, with warnings of hindered fraud detection and reduced taxpayer support.