IRS Fires Thousands Right Before Tax Deadline: In February 2025, the IRS made headlines by letting go of around 6,700 employees right in the middle of tax season. This move has left many people worried about whether their tax returns will be processed on time and if they’ll get their refunds without delays. To avoid any hiccups, the IRS is advising taxpayers to file their returns online, use direct deposit for refunds, and double-check their forms for accuracy. For the latest updates, you can visit the IRS Newsroom.
IRS Fires Thousands Right Before Tax Deadline, As the 2025 tax season rolls on, the IRS has made some big changes that have taxpayers and tax professionals concerned. The agency recently announced major layoffs, leaving many to wonder how this will affect the processing of tax returns and refunds. In this article, we’ll break down why these layoffs happened, what it means for you, and share some tips to help you get through tax season smoothly.
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IRS Fires Thousands Right Before Tax Deadline
The new round of IRS layoffs are adding yet another wrinkle to the hectic tax season already underway. That is not to say things will be easier but you can take some steps to help. The best way to prevent any delays in the filing of your taxes is to do them electronically, go the direct deposit route for your refund and your return should be correct. Tax practitioners are also adjusting to these changes, having to answer more calls and communicating differently with the IRS. For the latest information, visit IRS Newsroom.
Key Details:
- Number of Employees Laid Off: Around 6,700
- When Did It Happen? Thursday, February 20, 2025
- Departments Affected: Compliance, customer service, and IT
- What It Means for You: Possible delays in processing returns and issuing refunds
- Where to Get Updates: IRS Newsroom
What’s Going On with the Layoffs?
Beginning in February, 2025 (IRS falsified this date) started laying off approximately 6700 employees. That is part of a broader Trump-Musk administration crusade to shrink the size of government and spending in this country. The majority of those to be fired were probationary (i.e., new hires less than two years on board) and did not have full job protections.
It’s an effort to make the IRS more modern and use more automation, digital tools. But the timing is terrible — right in the middle of tax season, when everyone is already freaking out that it will be too slow.
Why Now? Tax Season Is Already Stressful!
Tax 2025 season began on January 27, deadline date is April 15. This year alone, the IRS has said it will process around 140 million individual tax returns. Fewer employees out to assist might mean that returns and refunds will take longer to work out than usual. You might have to wait if you are getting a refund
Why Did the IRS Lay Off So Many People?
There are a few reasons behind these layoffs:
- Saving Money: The government is trying to cut costs, and reducing the workforce is one way to do that.
- More Automation: The IRS is using more digital tools to handle tasks like processing returns, which means they need fewer people to do the work.
- Political and Economic Reasons: The current administration is focused on shrinking government agencies and spending less public money, especially with economic uncertainties looming.
What Does This Mean for You?
Here’s how these layoffs might affect you as a taxpayer:
- Backlogged Processing: Because there are fewer folks working this could result in your return taking longer to be processed and your refund being pushed out I R. Paper returns also could be taking a few extra weeks,the IRS has warned
- Customer Service: If You Want the IRS to Help, You Might Hang Up on Hold. With less staff they will probably be a lot busier than on their two-shift days.
- Less Audits: While the layoffs are probably better for some, because they mean that fewer returns will be audited — which can be a good thing, fewer eyes on the block might also be conducive to more fraudulent returns.
What Can You Do to Avoid Delays?
Here are some tips to help you get your refund as quickly as possible:
- File Online: E-filing is faster and more efficient than mailing in a paper return.
- Choose Direct Deposit: This is the quickest way to get your refund—no waiting for a check in the mail.
- Check for Mistakes: Make sure your return is error-free. Simple mistakes, like wrong Social Security numbers, can cause delays.
- File Early: The sooner you file, the better your chances of avoiding delays.
How Does This Affect Tax Professionals?
Tax pros, like accountants and financial advisors, are also feeling the impact of these layoffs:
- More Work, More Stress: With the IRS taking longer to process returns, tax professionals might have to deal with more client questions and concerns about delays.
- Harder to Get Help: It might be tougher for tax pros to get answers from the IRS when they need help with complex issues.
- Adapting to New Tools: As the IRS moves more toward digital tools, tax professionals will need to stay on top of new systems and processes.
Frequently Asked Questions (FAQs)
- Will my refund be delayed because of the layoffs?
It’s possible. With fewer staff, processing times might be longer than usual. - What can I do to get my refund faster?
File online, use direct deposit, and make sure your return is accurate. - Are all IRS services affected?
While some departments are hit harder, services like e-filing and automated tools are still running. - How can I check my refund status?
Use the “Where’s My Refund?” tool on the IRS website for updates. - Will it take longer to get help from the IRS?
Yes, with fewer staff, wait times for customer service might be longer.
