IRS reports higher refunds and larger payouts, while customer service challenges persist
The average U.S. tax refund rose to $3,275 during the 2026 tax filing season, an increase of $333, or 11.3%, from the previous year, according to the Internal Revenue Service’s Fiscal Year 2027 Objectives Report to Congress released on June 24.
The IRS processed approximately 138.6 million individual income tax returns and issued 90.4 million refunds during the filing season. The number of refunds increased 5.1%, from 86.0 million last year to 90.4 million, while the total value of refunds climbed 17.0%, from $253.1 billion to $296.1 billion.
The agency said nearly 98% of individual tax returns were filed electronically, and most refunds were delivered through direct deposit, allowing the vas
Despite the overall success of the filing season, millions of taxpayers still encountered delays. More than 14 million returns were pulled for additional review, and over 1 million taxpayers waited an average of 5½ weeks beyond the normal processing period to receive their refunds. Identity theft cases remained a major challenge, with some victims waiting as long as 20 months for their cases to be resolved.
Taxpayer service also deteriorated compared with the previous filing season. The IRS received 48.1 million phone calls, but customer service representatives answered only 21% of them. Average hold times increased to 14 minutes. Calls to the installment agreement line were answered just 31% of the time, with an average wait of 45 minutes, while the Taxpayer Protection Program line, used primarily for identity verification, had an answer rate of only 19%.
National Taxpayer Advocate Erin Collins said the IRS handled the filing season better than expected despite major operational challenges, but emphasized that taxpayers requiring personal assistance continue to face significant obstacles. She urged the agency to continue expanding digital services while strengthening telephone and in-person support for taxpayers with more complex cases.
