Every year, the National Taxpayer Advocate submits a report to Congress highlighting what’s working at the IRS, where taxpayers continue to face challenges, and what improvements should be prioritized in the future.

While these reports are written for lawmakers, they also offer valuable insight for taxpayers and business owners. The latest report paints an encouraging picture in many respects, but it also reinforces an important reality: navigating today’s tax system still requires planning, patience, and trusted guidance.

Here’s what stood out and why it matters.

Filing Is Becoming More Efficient

One of the biggest takeaways from this year’s report is that the vast majority of taxpayers experienced a smooth filing season. Nearly 139 million individual returns were processed, with about 98 percent filed electronically. Most refunds were issued quickly through direct deposit, demonstrating the continued success of the IRS’s modernization efforts.

This is good news for taxpayers. Digital filing continues to improve efficiency and reduce processing times. As the IRS continues investing in technology, maintaining organized records and embracing secure digital processes will become increasingly important.

The Taxpayers Who Need Help Still Face Challenges

Although routine returns were generally processed successfully, the report found that taxpayers who encountered problems often experienced significant delays.

Identity theft cases continue to take far too long to resolve. Taxpayers requiring paper refund checks experienced longer wait times, and individuals who needed to speak with the IRS or resolve more complex issues often faced additional hurdles.

For many people, the challenge isn’t filing a return. It’s knowing what to do when something unexpected happens afterward. That’s where having an experienced advisor can make all the difference.

Tax Laws Continue to Evolve

The report also highlights the growing complexity surrounding tax administration. Changes in legislation, expanded digital reporting requirements, and ongoing modernization efforts mean taxpayers are navigating a system that looks different than it did even a few years ago.

The Taxpayer Advocate identified improving online services, simplifying notices, reducing refund delays, and making compliance easier as priorities moving forward. For individuals and business owners alike, this reinforces the importance of proactive planning rather than waiting until filing season.

What This Means for Business Owners

If you own a business, these developments are especially relevant. As reporting requirements become increasingly digital and tax laws continue to change, maintaining accurate financial records throughout the year becomes more valuable than ever.

Mid-year reviews, estimated tax planning, financial benchmarking, and regular conversations with your CPA can help identify opportunities before deadlines arrive. Rather than reacting to changes, businesses that plan ahead are often in a stronger position to adapt.

More Than Compliance

One theme continues to emerge across the accounting profession: clients are looking for more than someone to prepare a tax return.

They want someone who understands how changes in tax law may affect them. Someone who can explain complex topics clearly. Someone who can help them make informed decisions before they become costly ones. That is why the role of a CPA continues to evolve from compliance to advisory.

The Bottom Line

The IRS continues to make meaningful progress in modernizing its systems, and that’s encouraging for taxpayers. At the same time, the tax landscape continues to change, making thoughtful planning and experienced guidance more valuable than ever.

At Waters Hardy, we stay current on evolving tax laws, IRS procedures, and industry trends so our clients can focus on what matters most. Whether you’re preparing for year-end, reviewing your business strategy, or simply looking for clarity around changing regulations, we’re here to help you navigate what’s next with confidence.

Interested in the full report? Visit: Taxpayer Advocate 2027 Objectives Report