As part of a broader initiative to cut federal government expenses, approximately 7,000 IRS employees, or about 7% of the total IRS workforce, have been let go. According to the Washington Post, these layoffs predominantly affected the enforcement and collections section of the agency. Furthermore, a hiring freeze established by President Donald Trump could extend to seasonal employees-those who typically provide extra support during tax season.
These changes may result not only in delays in refund processing, but also in possible mistakes, leading to taxpayers receiving more or less than their rightful refund, according to Crystal Stranger, an enrolled agent and CEO of Optic Tax. Taxpayers are advised to double-check any refund discrepancies, as they could be due to an IRS error.
Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, has some advice on how to navigate this period of potential confusion. His top recommendations are to file returns electronically and to ensure that all information, such as Social Security numbers, is accurate. Electronic filing results in automatic processing, reducing time and potential errors over paper-based returns.
Filing tax returns ahead of the April 15 deadline can also expedite the refund process. High volumes of last-minute tax returns could overload the system, leading to delays or shutdowns. For direct deposits, the expected wait time is usually between 14 and 21 days, but system errors and staffing shortages could lengthen this.
Instead of calling the IRS directly, O’Saben recommends using the IRS's online “Where’s My Refund” tool to check on your refund status quickly. As always, patience will be paramount throughout tax season.