In a move that’s raising eyebrows across the country, the IRS has laid off more than 6,000 employees right in the middle of tax season, a move that could delay tax refunds.
According to financial expert Armine Alajian, this shake-up could spell trouble for taxpayers expecting their refunds on time.
Why the Layoffs Matter
Most of the job cuts are hitting the IRS’s Small Business/Self-Employed Division (SBSE), which plays a key role in processing tax returns. With fewer hands on deck, Alajian warns that the agency will struggle to keep up with the flood of filings, leading to longer wait times for refunds. “The IRS was already stretched thin,” she says. “Now, with thousands of employees gone, it’s going to be even harder for them to stay on track.”
Expect Longer Waits
Alajian predicts that taxpayers who file paper returns could be waiting twice as long or more for their refunds. Even electronic filers, who typically get their money within three weeks, may face delays. “If you need your refund quickly, don’t wait,” she advises. “File electronically and choose direct deposit to speed things up.”
Customer Service Will Take a Hit
If you need help with your taxes, brace yourself for longer wait times. “Getting through to the IRS is already tough,” Alajian explains. “Now, with fewer people answering phones, it’s going to be even harder.” She recommends using the IRS’s online tools whenever possible, especially the “Where’s My Refund?” tracker, which provides real-time updates.
Behind the Layoffs
The job cuts are part of President Donald Trump’s plan to reduce government spending. The layoffs were fast-tracked under an executive order signed earlier this month, with Elon Musk’s Department of Government Efficiency (DOGE) overseeing the process. While the administration claims the cuts will save taxpayer money, critics argue they could end up costing the government billions in uncollected taxes.
The Bigger Picture
Alajian believes the timing of the layoffs couldn’t be worse. “This is the busiest time of year for the IRS,” she says. “Cutting staff now is like pulling firefighters off duty in the middle of a wildfire.” She also warns that the cuts could have long-term consequences, making it harder for the IRS to catch tax cheats and collect the revenue needed to fund government programs.
What You Can Do
To avoid delays, Alajian offers the following tips:
- File early: The sooner you file, the sooner you’ll get your refund.
- File electronically: E-filing is faster and more reliable than mailing a paper return.
- Choose direct deposit: Refunds sent directly to your bank account arrive faster than paper checks.
- Double-check your return: Mistakes can cause delays, so make sure all your information is correct.
Final Word
With fewer IRS employees processing returns and answering questions, this tax season could be one of the most challenging in recent memory. By filing early and using online tools, you can minimize the impact of these delays and get your refund as quickly as possible.
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