A cautionary tale from 1985, the dreaded ‘tax season from hell’

As the deadline for taxes approaches, many have once again experienced a smooth filing season and quick refunds. However, concerns are rising that taxpayers could face delays and headaches next year.
Despite the chaos in Washington, the IRS has had a successful 2025 filing season so far. The administration’s decision to maintain core IRS operations untouched has been beneficial. Yet, with impending cuts to the IRS, there is a reason to worry.
A disastrous tax season in 1985, known as the “tax season from hell”, serves as a warning of potential issues that could arise in 2026. Creating a repetition of the mistakes from 40 years ago is something the IRS should absolutely avoid.
Following the failure in 1985, taxpayers have relied on year-round IRS operations that enable smooth filing seasons and refund payments. The average tax refund is $3,116, making it a significant sum for many taxpayers.
Ensuring a seamless tax season, like the current one, requires effort and accuracy. A failure within the IRS can mirror the problems faced in 1985, which stemmed from rushed technology efforts and poor planning.
The system’s breakdown in 1985 resulted in significant delays in processing tax returns and issuing refunds. Taxpayers saw their refunds taking six months or more, and some were even required to file a second tax return.
Looking towards 2026, similar issues including budget cuts, staff reductions, and tech challenges could threaten the efficiency of the upcoming tax season. Any interference with the complex IRS systems and tax laws could have disastrous consequences.
With significant concerns looming around the next tax season, it is essential that proper planning and resources are allocated to ensure a smooth tax season in 2026. The continuation of prompt refunds is crucial in maintaining trust in the tax system and voluntary compliance with tax laws.