IRS Job Cuts Could Delay Tax Refunds for Millions in 2025
The IRS plans to cut over 6,000 jobs - approximately 6% of its workforce - raising concerns about significant tax refund delays in 2025. These federal job reductions could severely impact tax processing times and customer service during upcoming tax seasons.
IRS building exterior signage
Major Impact Areas:
- Slower tax return processing
- Extended refund wait times
- Reduced customer service capacity
- Longer hold times for IRS support
Those Most Likely Affected:
- Paper tax return filers
- EITC and Child Tax Credit claimants
- Taxpayers filing amended returns
- Anyone requiring IRS phone assistance
Former IRS commissioners warn these cuts could severely disrupt tax processing operations and undo recent efficiency improvements. For many Americans who rely on timely tax refunds for essential expenses, these delays could cause significant financial strain.
Steps to Minimize Refund Delays:
- File electronically instead of by paper
- Use direct deposit for refunds
- Review returns carefully for errors
- Submit returns as early as possible
- Keep copies of all documentation
While the IRS hasn't officially confirmed processing delays, taxpayers should prepare for potential impacts given the scale of workforce reduction. Those dependent on refunds for important expenses should plan accordingly and take steps to expedite their filing process.
The situation continues to develop as the agency adapts to reduced staffing levels. Taxpayers are advised to monitor official IRS communications and prepare for possible extended processing times during the 2025 tax season.