The report found the combination of staffing reductions and significant retroactive changes in the tax law has created challenges for both taxpayers and the IRS. Reductions were made in virtually all IRS functions, including Taxpayer Services, as shown in the following table:Of particular importance for taxpayer service are customer service representatives who answer telephone calls and process taxpayer correspondence and casework. Impact of tax law changesThe One Big Beautiful Bill Act made over 100 changes to the Tax Code. Telephone service vs. case processingHistorically, the IRS has used a "Level of Service" telephone measure as a primary taxpayer service metric. IRS plans to outsource paper tax return processingWhile most taxpayers now file their tax returns electronically, about 11 million individuals continue to file on paper each year, and the IRS receives an additional 11 million paper-filed employment tax returns.