TAXING TIMES Taxpayers could face big delays as IRS ‘lays off 15k workers

TAXING TIMES Taxpayers could face big delays as IRS ‘lays off 15k workers’ 

 As of February 24, 2025, the IRS has begun processing tax returns for the 2024 tax year. Most taxpayers can expect their refunds within 10 to 21 days if they e-filed and chose direct deposit. Paper returns may take longer to process.delawareonline.com

However, recent IRS staffing reductions could lead to delays in processing times. Approximately 15,000 IRS employees, mainly in junior and customer service roles, are expected to be laid off, potentially affecting tax return processing and refunds.the-sun.com

To check the status of your refund, use the IRS's "Where's My Refund?" tool. This online resource provides the most up-to-date information about your refund status.delawareonline.com

Advantages:

1. Faster Refunds for E-File and Direct Deposit Users:

   • E-filing and choosing direct deposit can speed up the refund process, typically within 10 to 21 days. This is a significant advantage for those who file early and choose direct deposit.

2. Tax Refunds are Still Being Processed:

   • Despite challenges, refunds are still being issued. Many taxpayers will still receive their refunds on time, particularly if they file correctly and follow the IRS guidelines.

3. Increased Awareness of Refund Tracking:

   • With the IRS offering tools like “Where’s My Refund?” taxpayers are now more aware of their refund status, which helps them plan ahead.

4. Taxpayer Advocacy:

   • Recent news about IRS layoffs has led to increased attention on taxpayers’ needs, potentially driving policy improvements or future support to address processing delays.

Disadvantages:

1. Potential Delays Due to IRS Layoffs:

   • With the IRS reducing its workforce by 15,000 employees, many taxpayers may experience longer delays in refund processing, particularly those filing paper returns or making mistakes on their forms.

2. Increased Stress and Uncertainty:

   • As refund processing times increase, many taxpayers may face uncertainty about when they’ll receive their refunds. This could cause financial strain for those relying on their refunds for important expenses.

3. Longer Waits for Paper Returns:

   • Paper tax returns take much longer to process compared to e-filing. With staffing cuts, the backlog for paper returns could grow even more, delaying refunds for those who prefer or are required to file on paper.

4. Lack of Customer Support:

   • With layoffs affecting customer service roles, it might be harder for taxpayers to get assistance if they encounter issues with their tax filings or refunds.

5. Increased Risk of Errors:

• With a smaller workforce, the risk of mistakes in processing may rise, leading to more frequent delays or issues that require correction, further slowing down refund times.

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