As tax season gets underway, many Americans are wondering if their refunds will be delayed due to planned staffing reductions at the IRS. President Donald Trump’s administration is set to cut more than 6,000 IRS jobs, sparking concerns about slower processing times, reduced customer service, and longer wait times for paper filers.
Experts recommend filing early, double-checking your tax return, and opting for electronic filing with direct deposit to avoid unnecessary delays. Let’s break down what these IRS cuts could mean for your tax refund and what you can do to stay ahead.
Layoffs
The Trump administration’s plan to lay off thousands of IRS employees has raised alarms among tax professionals and lawmakers. With fewer staff members handling tax returns, the IRS may struggle to process refunds efficiently, especially for those who file by paper or require customer support.
While electronic filers may still receive their refunds within the standard 21-day timeframe, tax attorney Adam Brewer warns that paper filers could face significant delays. “If you’ve been filing paper returns for years, this is the year to switch to electronic filing,” Brewer advises.
Delays
Processing times for tax refunds could increase, particularly for taxpayers who make filing errors, require audits, or need assistance from the IRS.
Senior fellow Vanessa Williams from the Urban-Brookings Tax Policy Center notes that the IRS had previously assured taxpayers of fast refunds, but that was before news of these staffing cuts.
“If you’re expecting a refund, submitting electronically with direct deposit is your safest bet,” Williams explained. “Paper filers, however, may see delays that extend beyond what the IRS initially promised.”
Filing
Tax professionals strongly recommend filing early this year. With fewer IRS employees handling returns, any mistakes could take longer to correct. Texas-based financial adviser Katie Brewer highlights the importance of double-checking tax information before submitting.
“One small mistake, like entering the wrong Social Security number or an extra zero, can lead to a lengthy delay in receiving your refund,” she cautions.
Shutdown
Beyond IRS layoffs, a potential government shutdown in mid-March could further complicate tax refund processing. If the government shuts down, tax refunds could be temporarily halted, adding more uncertainty to an already challenging situation.
“While the layoffs are concerning, a government shutdown would be even worse for taxpayers waiting on refunds,” Brewer warned. “If that happens, there’s nothing the IRS can do until the shutdown is resolved.”
Assistance
For taxpayers needing updates on their refund status, the IRS provides the “Where’s My Refund?” tool. Electronic filers can check their refund status within 24 hours of submitting, while paper filers may have to wait up to four weeks.
To use the tool, you’ll need:
- Your Social Security number (or ITIN)
- Your filing status
- The exact refund amount
Tax refunds are crucial for millions of Americans who rely on them to cover bills, pay off debt, and manage daily expenses. Given the uncertainty surrounding IRS staffing and a possible government shutdown, filing early, using electronic methods, and ensuring accuracy are the best ways to avoid unnecessary refund delays.
FAQs
Will IRS layoffs delay tax refunds?
Yes, fewer IRS employees may slow down processing, especially for paper filers.
How can I get my refund faster?
File early, submit electronically, and use direct deposit to avoid delays.
What happens if the government shuts down?
A shutdown could temporarily halt tax refund processing until resolved.
Is electronic filing better than paper filing?
Yes, electronic filers typically receive refunds within 21 days, while paper returns take longer.
Where can I check my refund status?
Use the IRS ‘Where’s My Refund?’ tool for real-time updates on your return.
