Hearings to examine the IRS 2026 filing season and IRS operations

Benefits Fraud and Improper PaymentsSenate Finance · 2026-04-15 · 119th Congress
The Senate Finance Committee convened this hearing on Tax Day, April 15, 2026, to examine the 2026 IRS filing season and IRS operations, with IRS CEO Frank Bisignano as the sole witness. Begins at 0:24:46
Transcript
Highlights

Title

IRS 2026 tax filing season and dual IRS/Social Security leadership

Purpose

The Senate Finance Committee convened this hearing on Tax Day, April 15, 2026, to examine the 2026 IRS filing season and IRS operations, with IRS CEO Frank Bisignano as the sole witness. Discussion centered on filing-season statistics and implementation of the Working Families Tax Cuts Act, alongside sharp partisan disagreement over the shuttered Direct File program, IRS data-sharing with ICE, staffing cuts, the tax gap, and Bisignano's dual role also leading the Social Security Administration. Begins at0:24:46

Who spoke

Chair Mike Crapo (R-ID)0:24:46: Opened by touting the filing season's smooth rollout, citing about 120 million returns received and 80 million refunds issued, averaging over $3,400 (up 11%)0:27:05; later pressed Bisignano on Direct File's cost, citing a $72 million development cost working out to over $242 per return filed0:47:50; closed by praising the season and technology modernization2:46:26.

Sen. Ron Wyden (D-OR), Ranking Member0:29:48: Criticized the administration for killing Direct File and called it a gift to tax-prep companies0:30:29; alleged Trump's $10 billion lawsuit against the IRS over his leaked returns creates a conflict of interest for IRS/Treasury staff0:31:47; pressed repeatedly for a direct opinion on the lawsuit and on staff working from home, without success0:52:07; closed by pressing for a free, IRS-run filing option like those used abroad2:40:25.

Mr. Frank Bisignano, IRS CEO / SSA Commissioner0:38:23: Called this "the most successful filing season in IRS history," citing 134 million returns, 98% filed electronically, and refunds totaling over $280 billion, 16% higher than last year0:38:450:40:08; said 53 million Americans claimed new deductions (tips, overtime, car loan interest, seniors)0:40:36; declined to answer on the Trump lawsuit or ICE data-sharing litigation, citing ongoing litigation0:49:400:52:19; said enforcement revenue is up 12% with the top five cases totaling $2 billion0:58:29; said no data left Social Security under DOGE and denied any political targeting requests1:07:252:20:10.

Sen. Michael Bennet (D-CO)0:53:41: Questioned why the U.S. lacks pre-populated tax forms common in OECD countries0:54:09; cited an estimate of $646 billion in unpaid taxes by wealthy individuals due to reduced IRS staffing0:57:39.

Sen. Peter Welch (D-VT)0:59:40: Presented a chart showing a 25% enforcement staff cut and cited $598 billion in lost revenue from DOGE layoffs1:00:02; pressed on a predecessor's ~$1 trillion tax-gap estimate versus Bisignano's $650 billion figure1:01:401:01:51.

Sen. Sheldon Whitehouse (D-RI)1:05:26: Questioned the rule barring Bisignano from answering Social Security questions1:05:26; noted audits of taxpayers earning above $10 million dropped 9% and are scheduled to drop another 30%1:07:59; requested a technical briefing on IRS AI and workforce reductions1:10:19.

Sen. Catherine Cortez Masto (D-NV)1:11:46: Pressed for specifics on how Bisignano splits time between the IRS and SSA1:11:59; cited DOJ admissions about an unauthorized third-party server and a whistleblower claim of an SSA database taken via thumb drive, plus 42,695 court-found violations from IRS-DHS data sharing1:14:47; raised a Clark County, Nevada foster-children Social Security card backlog1:16:00.

Sen. Ron Johnson (R-WI)1:17:09: Asked Bisignano to compare private-sector management challenges to reforming the IRS1:17:33; noted 25% of IRS staff took voluntary retirement1:20:02; urged simplifying the tax code1:21:21.

Sen. Marsha Blackburn (R-TN)1:22:36: Praised the senior deduction, noting 30 million filers used it1:23:08; raised IRS treatment of R&D tax credits for manufacturers' shop-floor research1:24:08 and asked about overlapping partnership-audit programs identified by a Treasury Inspector General report1:26:01.

Sen. Chuck Grassley (R-IA)1:28:41: Highlighted the IRS Whistleblower Program's over $7 billion brought to Treasury and pressed for more use of it1:32:21.

Sen. Steve Daines (R-MT)1:34:06: Touted the Working Families Tax Cuts Act, citing Montanans' average refund increase of over $3,5001:35:06; raised concerns that 45% of eligible children nationally never claim survivor Social Security benefits1:38:44.

Sen. Mark Warner (D-VA)1:39:58: Compared the average $346 Virginia refund against rising costs — electricity up $304, tariffs $370, rent up $307–600, and gas price increases from the Iran conflict — totaling an estimated $1,852 net cost increase1:40:151:41:52; criticized a proposed 17% cut to the IRS Inspector General's budget, a loss of over 130 employees1:44:42.

Sen. Elizabeth Warren (D-MA)1:58:29: Said DOGE pushed out about 4,400 IRS phone-service employees, later leaving hiring roughly 1,000 short of targets with wait times doubling1:58:58; cited Meta saving $3 billion and Amazon over $4 billion in taxes, arguing these cuts were funded by cuts to health coverage2:01:09.

Sen. Bill Cassidy (R-LA)2:04:10: Introduced the bipartisan Improving IRS Customer Service Act with Sens. Warren and Warner, proposing an online wait-time dashboard2:04:52; asked about historic preservation tax-credit guidance2:07:31 and crypto tax reporting compliance under new Form 1099-DA rules2:09:11.

Sen. Maggie Hassan (D-NH)2:10:36: Discussed AI-driven IRS impersonation scams and multi-agency scam-reporting fragmentation2:11:04; pressed on a Social Security Inspector General investigation into an alleged DOGE staffer data theft, noting Bisignano's answer conflicted with what the committee had actually received2:13:04.

Sen. Raphael Warnock (D-GA)2:18:47: Asked how many IRS agents were detailed to DOJ (Bisignano said 15)2:19:48; obtained commitments that nonviolent protest, litigation against ICE, or presidential criticism of groups like the ACLU or Ford Foundation would not trigger IRS investigation2:22:322:24:27.

Sen. Ben Ray Luján (D-NM)2:18:00: Pressed on whether phone wait times are longer than when Bisignano took over, eliciting an acknowledgment that reaching an agent takes about nine minutes2:26:25; questioned Bisignano's work location and adherence to the president's return-to-office order2:28:16.

Sen. Thom Tillis (R-NC)2:29:33: Requested detailed customer-service statistics for the record2:30:05; referenced the historical Lois Lerner IRS targeting controversy2:30:56; asked for a briefing on sustainable, "bookable" budget savings and a realistic tax-gap framework2:32:55.

Sen. Roger Marshall (R-KS)2:34:42: Praised Bisignano's personal background and the no-tax-on-overtime provision, citing 23 million beneficiaries2:38:31; asked about IRS staffing levels compared to 2019's 78,0002:39:33.

Sen. Elizabeth Warren, Sen. Sheldon Whitehouse, Sen. Ben Ray Luján (name-check exchange) — see individual entries above.

Key moments

Chair Crapo said failing to pass the Working Families Tax Cuts Act would have meant a tax increase of more than $2.6 trillion on households earning under $400,0000:25:47.

Wyden alleged a federal judge found the government unlawfully disclosed taxpayer information to ICE in nearly 43,000 cases, and Bisignano repeatedly declined to answer whether affected taxpayers were notified, citing ongoing litigation0:49:110:49:40.

Bisignano confirmed he was not involved in discussions of Trump's $10 billion lawsuit against the IRS over leaked tax returns and declined to give a personal opinion on whether taxpayers should pay the settlement0:52:050:52:36.

Sen. Welch and Bisignano sparred over the size of the "tax gap," with Welch citing a former Trump-appointed commissioner's ~$1 trillion estimate against Bisignano's $650 billion figure, which Bisignano called the last reported number, not a document ever produced1:01:401:02:20.

Sen. Whitehouse noted audits of taxpayers earning above $10 million dropped 9% with another 30% cut scheduled, and that the Large Business and International Division lost 19% of its staff1:07:591:09:33.

Sen. Cortez Masto cited DOJ court admissions about DOGE staffers using an unauthorized server and a whistleblower claim that a DOGE staffer took Social Security databases via thumb drive, alongside 42,695 court-found violations of taxpayer privacy law under the IRS-DHS agreement1:14:47.

Sen. Warren said DOGE pushed out roughly 4,400 IRS phone staff, forcing a scramble to rehire that still fell about 1,000 short, doubling taxpayer phone wait times1:58:58; she contrasted this with Meta ($3B) and Amazon ($4B+) tax savings2:01:09.

Sen. Warnock secured on-the-record commitments from Bisignano that the IRS would not investigate the ACLU, NAACP, or nonprofits based on presidential criticism or their opposition to ICE enforcement, and that any such improper directive would be reported to Congress2:20:132:22:582:24:27.

Sen. Hassan directly disputed Bisignano's answer that he had briefed the chairman and ranking member on a Social Security data-theft investigation, prompting Wyden to state on the record that the witness's answer "is not true"2:13:04.

Sen. Warner tallied estimated added costs to an average family from electricity, tariffs, rent, and gas price increases at $1,852, against an average refund of $346, which Bisignano disputed as an unfair comparison1:40:481:42:56.

Metadata

CommitteeSenate Finance
Chamber / CongressSenate · 119th Congress
Date2026-04-15
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript529 caption blocks · 18,739 words · 2:46:57 runtime
EventCongress.gov 338156