What You Need to Know About Income Tax Filing Amid IRS Layoffs

The 2025 tax season is marked by unprecedented changes, and many taxpayers are worried about how this could impact their filings and refunds.

With the proposed abolition of the United States Internal Revenue Service (IRS) and the possible layoff of up to 7,000 workers, it’s natural for uncertainty to arise.

But will this really affect your income tax return? How can you prepare to avoid delays or issues?

How IRS Layoffs Could Affect Income Tax Filing

The IRS has already been struggling to fill open positions, and now, with even deeper cuts, concerns about service efficiency are growing.

Many of the laid-off employees were part of the audit, collections, and call center teams — crucial areas for taxpayer support. The consequences could include:

  • Delays in processing returns
  • Difficulties in resolving documentation-related issues
  • Slower responses to inquiries and requests

What You Need to Do to Avoid Delays in Your Filing

Given this scenario, the best strategy is to be proactive and careful. Here are some essential tips to help you through this process:

File Your Return Electronically

About 91% of taxpayers already do this, and it’s the most efficient way to avoid delays. Using the IRS’s free Direct File system or even tax preparation software speeds up the process.

Use Direct Deposit

Opting for direct deposit to receive your refund avoids complications with checks and speeds up payment.

Review Your Documentation

Simple errors, like missing forms or incorrect information, can get your return stuck in the system. Review everything very carefully and ahead of time.

Keep an Eye on Credits and Deductions

Make sure you’re eligible for the credits you intend to claim. Returns flagged for audit tend to experience greater delays.

How to Track Your Return and Refund

The IRS offers tools to monitor the status of your return. Some of them are:

  • IRS Website: “Where’s My Refund?” tool
  • IRS2Go App: Allows you to check updates directly from your phone

Protecting Taxpayer Data

With discussions about taxpayer data access by private companies, like Elon Musk’s, it’s important to double down on data security. To protect your information:

  • Get an Identity Protection PIN (IP PIN)
  • Beware of Suspicious Contacts: The IRS does not initiate contact via email, text, or phone

What If I Need Help?

With staffing reductions, reaching the IRS may become more difficult. If you can’t resolve your issue, you can:

  • Call Early: Between 7 a.m. and 8 a.m. is usually less busy
  • Seek the Taxpayer Advocate Service: This service helps resolve persistent issues

Conclusion: Plan Ahead to Avoid Problems

Despite the uncertainties, the best way to protect yourself against delays and issues is to stay organized. File your return electronically, review your documentation, and track your status via the IRS website or app.

Tax season may be turbulent, but with attention to detail and quick action, you can get through it without headaches.

Author

Camilly Caetano

Lead Writer

Camilly Caetano is a copywriter, entrepreneur, and business strategist. With over six years of experience, she writes about personal finance and investments, helping people understand and manage their money in a simpler and more responsible way. Her focus is to make the financial world more accessible by clarifying doubts and facilitating decision-making.