IRS Fires Thousands Right Before Tax Deadline – Will Your Tax Return Be Delayed?

On: Wednesday, April 9, 2025 11:54 AM

A shocking news has come out in the midst of the 2025 tax season – the US Income Tax Department (IRS) has suddenly laid off 6,700 employees. This step has been taken at a time when crores of people are filing their tax returns. This decision has worried both common citizens and tax professionals.

In this article, we will know why these layoffs happened, what effect it can have on taxpayers, and how you can deal with this situation.

🔥 What has happened?

Date: 20 February 2025

How many employees were fired: About 6,700
From which departments were they fired:
Customer Service
Compliance (audits, rule checks)
IT (technical support)

All these employees were new and trainee staff, who had not yet fully received the protection of civil service.

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Why was this decision taken?

Reduction in government expenditure
The US government (under the leadership of Trump and Elon Musk) is working on a plan to reduce the size of government departments. Under this plan, staff was also reduced in the IRS to reduce government expenditure.
Reliance on automation and digital tools
The IRS now wants to get many tasks done through automation (such as computer software). This can make more work possible with fewer people. Therefore, the need for manual staff has reduced.
Political and economic environment
The removal of a large number of employees is part of the government’s current policy, which emphasizes “less staff, more technology”.

😟 What will be the impact on taxpayers?

At present, the IRS has to process more than 140 million tax returns. At such a time, the effect of such a large layoff can be clearly seen:

Delay in refund
Due to less staff, it may take more time to process the return. Especially for those who have filed returns on paper, their refunds may be delayed by several weeks.
Customer service down
Calling the IRS call center or helpline may now be more difficult. If someone has a problem with refund or any question related to tax filing, it may take longer to get an answer.
Impact on audits and tax fraud
The reduction in the compliance department may also make it challenging for the IRS to catch and audit fraudulent returns.

✅ How to avoid these problems?

Now that the IRS has less staff, taxpayers should adopt some smart ways to get refund quickly and there is no problem in processing:

File electronically
Filing returns online is fast and easy. The IRS processes e-files quickly.
Choose direct deposit
The fastest and safest way to get a refund is direct deposit. Sending paper checks may be delayed.
Do not make mistakes
While filling the form, double check the details like name, social security number, and account number. Even a small mistake can stop the refund.
File early
If you file the return before the last date (April 15), your return will be processed first and you will get the refund quickly.

👩‍💼 What will change for tax professionals?

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The layoffs of IRS will not only affect common people, but also accountants and tax consultants who file taxes:

Increased workload
Client complaints, delay in refund and lack of response from IRS – all these things will increase the tension of tax professionals.
Contact with IRS is difficult
Due to less staff, it may be difficult for professionals to contact IRS, talk about a complex case or even register a complaint.
Will have to learn new digital systems
IRS is now using digital tools more. Professionals will also need to navigate new software and e-filing systems.

Conclusion – What should you do now?

The IRS layoffs will certainly cause tax filing problems, but you can avoid them with the right steps.
File early, go electronic, and make sure all information is accurate.
If you have any problems, consult a trusted tax professional.

FAQs

Q1: Why did the IRS fire thousands of employees right before the tax deadline?

A: The IRS has not released full details, but reports suggest the layoffs may be tied to internal restructuring, performance issues, or budgetary decisions.

Q2: Will my tax return be delayed due to the firings?

A: While delays are possible, the IRS has not confirmed widespread disruptions. However, returns requiring manual processing may take longer than usual.

Q3: Should I file my taxes early to avoid delays?

A: Yes. Filing early and electronically is recommended, especially with direct deposit. It minimizes the chance of delay amid IRS staffing changes.

Q4: What if I’ve already filed my return – will it be affected?

A: If you’ve filed electronically and there are no issues with your return, you’re unlikely to experience major delays. Keep checking the IRS refund tracker for updates.