The IRS is about to lay off thousands of "probationary" employees this week, meaning those with two years or less on the job.
Have you filed your tax return yet? There are still a couple of months until the deadline, but a major measure by the Internal Revenue Service (IRS) could affect when you receive your refund.
The IRS is about to lay off thousands of "probationary" employees this week, meaning those with two years or less on the job.
This measure aligns with President Donald Trump's administration's effort to reduce the size of the federal workforce.
Tax season is already here. While it’s always recommended to file early, this year it’s also important to switch from paper to digital filing.
Experts say filing your taxes electronically, early, and accurately could save you a headache, as the IRS layoffs are about to begin.
"I think getting help through a person or corresponding with the IRS is going to be very difficult throughout 2025," said Sara Spodick, director of the tax clinic at Quinnipiac University School of Law.
She mentioned that the IRS has faced staffing issues since the pandemic, during which taxpayers experienced delays with in-person and phone services, especially regarding paper filings.
Now, the concern is that fewer IRS employees will lead to delays in person-to-person interactions, such as those required for paper filings or assistance with a rejected electronic return.
She stated that 18 million electronic tax returns were rejected in 2024.
"If you’re in a situation where you’ve made an error or your return has been rejected, you could face significant delays because employees will be relocated after these cuts," Spodick said.
"I'm afraid we’re going to take a step backward," said Courtney Gilrein, an enrolled agent at MMNT Certified Public Accountants.
Public accountants and administrative assistants in Connecticut also expect to feel the direct impact of these layoffs.
Gilrein noted that IRS delays during the COVID era sometimes resulted in four-hour phone wait times, and some paper returns took up to two years to process.
"Give your tax documents to your preparer as soon as possible so they can get started. And if there’s any issue with the return, we can handle it now while there are still people in the office," Gilrein said.
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