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IRS Layoffs May Affect the Tax Season: Tips for Getting Your Refund

Catherine Hodder, Esq.

Article by: Catherine Hodder, Esq.

Senior Attorney Editor

Reviewed by Joseph Fawbush, Esq. | Last updated on

Preparing and filing federal taxes with the Internal Revenue Service (IRS) has never been enjoyable. This tax filing season may be worse.

President Donald Trump and Elon Musk (through the Department of Government Efficiency) have set a hiring freeze on federal workers. As a result, on February 21, 2025, the IRS implemented staffing cuts by laying off 6,700 IRS employees. According to Reuters, the IRS has about 100,000 employees, and the affected employees are probationary workers who have had less than 2 years of service.

Under President Joe Biden’s 2022 Inflation Reduction Act, the IRS was given $80 billion to hire new IRS workers for compliance, audits, and enforcement. Last year, lawmakers reduced that amount to $60 billion. According to the Associated Press, the reduction in staffing could mean that the plans “to go after high-wealth tax dodgers” are thwarted and will adversely affect revenue collections. It also may mean a disruption to filers expecting their tax refund.

USA Today reports that “the processing paper returns could take “double, triple, or quadruple” the normal processing time of six to eight weeks” and “processing paper refund checks could also take longer than the normal three to four weeks.”

If you anticipate a refund this tax season, you should file your tax return as early as you can. Follow these tips for tax filing, checking the status of your refund, and avoiding delays in getting your money back.

Tips For Preparing Your Taxes

To file a timely tax return, organization is key. Gather all tax statements and documents that you need to file your return, such as:

  • W-2s from employers
  • 1099s (interest, dividend, and miscellaneous income statements)
  • Receipts for medical expenses, business expenses, charitable deductions, etc.

If you aren’t receiving these documents in the mail, check your online accounts. You may be able to download the statements you need.

If you have questions and want to contact the IRS taxpayer service center, do so quickly, as it may take longer to speak to someone.

Tips For Speeding Up Your Tax Refund

To get your refund early, file early. Filing your tax return online is faster than using U.S. Mail. You can use tax filing software such as TurboTax or H&R Block or hire a tax professional. If your income is less than $84,000, you can use one of the IRS’s free online tax preparation and filing service partners. Anyone at any income level can also use the free fillable tax forms on the IRS website.

To speed up receiving your refund, opt to receive your refund by direct deposit to your bank account.

Tips For Checking Your Refund Status

Once you file your taxes, you may be interested to know when you can expect your refund. The IRS has the Where’s My Refund? tool on the IRS.gov website.

You can expect to see your refund status:

  • 24 hours after you e-file your return
  • 3 or 4 days after you e-file your return for a prior year
  • 4 weeks after you file a paper return

To check your refund, you must provide:

  • Your Social Security number (SSN) or individual taxpayer ID number (ITIN)
  • The tax year you are seeking refund status
  • Your filing status (as indicated on your return)
  • The exact refund amount (as indicated on your return)

You will see one of three status notices:

  • Return Received – The IRS received your return and is processing it.
  • Refund Approved – The IRS approved your refund and is preparing to issue it by the date shown.
  • Refund Sent—The IRS sent the refund to your bank or in the mail. It may take 5 days to appear in your bank account or several weeks for a check to arrive by mail.

Tips for Avoiding Delays of Your Tax Refund

According to the IRS website, there are specific things that can delay your tax refund:

  • Your return has errors, is incomplete, or is impacted by identity theft or fraud.
  • Your return needs a correction to the child tax credit or recovery rebate credit amount.
  • Your return has a claim for an earned income tax credit, additional child tax credit, or includes a Form 8379 (Injured Spouse Allocation).

Additionally, not having the correct banking information for a direct deposit or the correct mailing address for a check will delay your refund. If the IRS needs more information to process your return, it will contact you by mail.

What the IRS Layoffs Don’t Mean

Although the layoffs affect tax compliance and audits, it does not mean you should skip paying your taxes or cheat with the thought that you won’t get caught. The IRS still has many employees to audit you. If you are audited, it is best not to go it alone. You may want an experienced tax attorney on your side. They can represent you and help you with any state or federal tax issues.

The federal income tax deadline is April 15, 2025. Don’t miss it.

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