(UNITED STATES) – A 2026 spike in IRS inventories, driven by workforce reductions and a 76-day DHS shutdown, is rippling through immigration processing, delaying ITINs and tax records often used in USCIS decisions.

TIGTA said on July 6, 2026 that IRS inventories climbed from 1.9 million at the start of filing season to 2.4 million by the end of February 2026. The increase came as the IRS absorbed staffing losses, unfinished paper-return programming, and shutdown-related strain across federal systems.

IRS staffing fell by 30% during the first year of the second Trump administration, while IT staff fell by 42%, TIGTA reported. That mattered quickly. Paper return inventories rose because programming needed to process them was not completed until mid-February 2026.

Electronic filing held up better. TIGTA and IRS figures showed a 99% e-filing rate, and the agency had processed nearly 139 million individual returns by mid-year. Those numbers softened the public picture, but they did not erase delays tied to paper filings, identity theft cases, and ITIN processing.

IRS CEO Frank Bisignano defended the cuts on April 14, 2026. “No staffing shortage here. You have to look at the results we’ve been producing,” he said in a Fox Business interview.

National Taxpayer Advocate Erin M. Collins struck a different note in her report to Congress on June 24, 2026. She said the IRS entered the season facing “a convergence of major challenges,” including new tax legislation, workforce reductions, and leadership turnover.

DHS added another shock. The shutdown ended on May 1, 2026 after 76 days, disrupting employees and agency operations across DHS components. Treasury Secretary Scott Bessent said on April 1, 2026 that Treasury and the IRS would give affected DHS employees a 30-day automatic extension.

DHS Secretary Markwayne Mullin said on May 1, 2026 that the shutdown created challenges across DHS and its 22 components, while also straining family finances. The tax effect was immediate for many federal workers. The immigration effect lasted longer because USCIS sits inside DHS and was already under pressure.

USCIS reported a backlog of 11.6 million pending cases in 2026. On April 27, 2026, USCIS also implemented upgraded security vetting that paused many adjudications while cases were re-vetted under new systems. Delays in tax records can feed into that larger queue when applicants need proof of filing, transcripts, or ITIN-related evidence.

The overlap is practical, not abstract. Adjustment cases, naturalization files, affidavits of support, waiver requests, and other filings often include tax returns, tax transcripts, or proof of compliance. When ITIN processing slows, families and self-employed applicants may have trouble assembling records that USCIS officers typically review.

Identity theft victims were among the hardest hit in the tax system. TIGTA flagged prolonged case resolution times after reductions in Taxpayer Services staff. Those cases often need manual review, and manual review slows first when staffing drops.

Refund timing also split sharply by payment method. Direct deposit remained the fastest route, but taxpayers without direct deposit information could face paper-check waits of up to 10 weeks. That lag may matter in immigration matters where recent tax compliance or household finances must be documented by a filing deadline.

USCIS had a frontlog of 247,974 unopened applications by mid-2026. That figure refers to mail not yet opened, not cases already under review. Combined with an 11.6 million-case backlog, it meant a filing could sit before any officer assessed whether tax proof was complete.

The 2026 strain also arrived during implementation of the One Big Beautiful Bill Act (OBBBA), which added programming and operational work inside the IRS. DOGE-led staffing changes removed experienced personnel while the agency was expected to absorb those changes. Collins described that overlap as a test of operational resilience, and the inventory figures support that assessment.

Official updates are spread across several channels. IRS announcements appear at IRS Newsroom. Treasury statements are posted at Treasury. USCIS publishes data and alerts at USCIS, case tools at (https://egov.uscis.gov), and account notices at myUSCIS. TIGTA reports remain a primary record for the filing season’s inventory and staffing findings.

This article involves tax, immigration, and government actions. All information is based on official sources (IRS, TIGTA, DHS, USCIS). Readers should consult qualified professionals for personal advice.

There may be evolving policy changes. Verify current guidance with the relevant agency websites before acting on timelines or procedures.