IRS Cuts 6,000 Jobs, Tax Refund Delays Expected to Worsen

IRS Cuts 6,000 Jobs, Tax Refund Delays Expected to Worsen

By Marcus Bennett

March 15, 2025 at 12:41 PM

The Internal Revenue Service (IRS) is reducing its workforce by over 6,000 employees, potentially causing significant delays in tax refund processing and customer service operations.

IRS building exterior view

IRS building exterior view

These cuts primarily affect new hires and are expected to extend processing times beyond the standard 21-day period for electronic returns. Former IRS Commissioner Daniel Werfel has expressed concern about the timing of these reductions during tax season.

Key Impacts on Taxpayers:

  • Extended processing times for tax refunds
  • Increased wait times for customer service calls
  • Higher risk of processing errors
  • Potential delays even for direct deposit recipients

Essential Tips for Filing:

  1. Submit returns early to avoid backlogs
  2. Use direct deposit instead of paper checks
  3. Monitor refund status through the IRS "Where's My Refund?" tool
  4. Carefully review all information before filing to prevent errors

The situation may worsen as the Social Security Administration (SSA) considers reducing its workforce by up to 50%, potentially creating additional challenges for government service delivery.

While the IRS maintains its commitment to efficient processing, taxpayers should prepare for possible delays and take proactive steps to monitor their returns. These workforce reductions raise concerns about the long-term effectiveness of tax administration in the United States.

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