IRS Layoffs During Tax Season Raise Concerns Over Refund Delays

The recent dismissal of 7,000 IRS employees, primarily in enforcement and collections, could disrupt tax processing and refund timelines for millions of Americans.

Approximately 7,000 IRS employees, or 7% of the agency's workforce, were laid off this week as part of federal budget cuts under the Trump administration.
The layoffs primarily target enforcement and collections staff, potentially affecting audits of high-income taxpayers and business compliance measures.
Experts warn that reduced staffing could lead to delays or errors in tax refund processing, especially for returns requiring manual review.
Taxpayers are advised to file electronically, ensure accuracy in their returns, and submit early to minimize potential delays.
Seasonal hiring freezes and the dismissal of probationary employees funded by the Inflation Reduction Act have further strained IRS resources during the busiest filing period.