There was a recent announcement regarding staffing cuts at the IRS. How will this impact you and should you be concerned?
Background Information
The IRS hired approximately 22,000 people during 2022, 31,000 during 2024, and approximately 20,000 during 2024 for a total workforce of more than 100,000 employees. This has been the largest number of employees staffed by the IRS in decades. The announcement of recent layoffs will affect approximately 6,000 to 7,000 employees.
Impact on Tax Season
Most tax returns are processed using automated systems nowadays. Some tax returns require an additional review, which may take longer this tax season. However, the best action to take is to file your returns electronically and accurately.
A common question asked during tax season is “Where is my refund?” This can easily be obtained by using the “Where’s My Refund” tool at irs.gov. You can and also should create an account with the IRS to obtain information and make and view tax payments (although you can make tax payments without an account). These tasks do not rely on reaching out to IRS staff.
The area that may be impacted most will be with customer service. If you need to reach out to the IRS via telephone or mail, then there may be delays. This has been a problem historically and especially during and after the pandemic.
Should You Be Concerned?
Most of the employees impacted are probationary employees, who are newer to the job. Additionally, the IRS has increased its staffing tremendously over the last 3 years, and it looks like it will still have a greater number of employees than it did a few years ago anyway. Don’t be concerned.
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