The Treasury Inspector General for Tax Administration released its plans Monday for the investigations it plans to do next year of the Internal Revenue Service, including the impact of the workforce reductions carried out in the Trump administration and the elimination of paper checks.
TIGTA released its Fiscal Year 2026 Program Plan, listing close to 100 ongoing or planned audits, inspections and evaluations, many of them related to the major challenges faced by the IRS.”We conduct a strategic planning process that identifies high-risk or emerging issues impacting federal tax administration and the IRS,” TIGTA said in an email Monday linking to the report. “We adjust our program plan accordingly to respond to Congressional requests or new issues. Our plan is a mix of discretionary and required reviews.”
TIGTA said it considers several factors when selecting which areas of IRS programs and operations to review, including referrals from its Office of Investigations, concerns from IRS employees and tax practitioners, findings from previous work, requests made by Congress, and input from leadership at the IRS and the Treasury Department.
Some of the reports planned for next year will take a closer look at IRS workforce reductions, presumably updating a report released in July that looked at IRS staffing cuts through May of this year. Another report planned for next year will look specifically at the impact of workforce reductions on IRS overtime, compensatory time and premium pay. Another report promises to focus on the impact of the IRS Criminal Investigation division’s diminished resources on tax administration, including the loss of personnel and reallocation of resources away from tax-related crimes. Another report will put the spotlight on the IRS’s Drug-Free Workplace Program and assess whether the IRS effectively identifies and tests its employees for illegal drug use.
Other reports planned for next year include looks at the interim results and final results of the 2026 filing season, as well as another assessing the effectiveness of the IRS’s controls over and use of premium pay, including mandatory overtime, during the filing season. Another report will determine whether the collection processes for IRS employee non-tax debts, such as advanced leave and salary overpayments, are timely and effective. Another report is planned on the Trump administration’s plans to eliminate paper checks and provide an update on the IRS’s efforts to phase out the distribution and receipt of paper checks.
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