Will the expected IRS staff cuts delay my 2025 tax refund?

Tax filing season is upon us, and some people are worried it may take longer to get their refunds as President Trump says he intends to make significant cuts to the IRS during its busy period. 

Tax experts say these concerns are valid and that it’s more important than ever to file early this year, as Americans could encounter tax refund delays, particularly as they get closer to the filing deadline. The Internal Revenue Service began accepting tax returns on Jan. 27 and will continue to do so until April 15, unless a taxpayer asks for an extension.

Mr. Trump is expected to fire more than 6,000 IRS employees by the end of this week, as he doubles down on efforts to cut the size of the federal workforce. 

Tax accountant Terrance Hutchins, of Logos Financial Group, said taxpayers should expect longer hold times over the phone and slower customer service in general. He still expends refunds on relatively straightforward returns that are filed early and electronically, though, to appear in a timely manner. 

But many taxpayers could experience processing delays as a result of the anticipated cuts. 

“Your refund can be very fast indeed if you receive it by direct deposit, but those promises were made a few weeks ago before the agency knew of the cuts, so it’s very hard to say what the impact will be,” Vanessa Williams, a senior fellow at the Urban-Brookings Tax Policy Center told CBS MoneyWatch.

Will the IRS cuts affect how long it takes to get my refund?

Tax accountants say the advice they always give taxpayers — which is to file their returns early — is even more important this year, in light of the anticipated workforce reduction. If the IRS’ headcount is reduced, any errors on one’s tax return will take longer to remedy. 

If taxpayers file close to the deadline or make mistakes in their returns, Hutchins expects a reduced workforce at the agency would lead to one’s refund being delayed. 

Williams of the Tax Policy Center, said filers in need of assistance should expect slower refunds as a result of long wait times and worse customer service.  “You spend a lot of time on hold, and there are real consequences,” she said, recalling the 2010s when the IRS was understaffed.

Democratic Senators warned in a letter to the Trump administration Tuesday that potential staff cuts could lead to delayed tax refunds for Americans in 2025. 

“Staffing reductions at the IRS resulting from Trump’s hiring freeze and potential layoffs would likely delay tax refunds, harm taxpayer service and undermine law enforcement effort,” the senators wrote. It’s essential that the agency responsible for processing refunds be fully staffed to support Americans through tax season and “answer their questions, process their returns, send them refunds and keep IRS systems online and functional.”  

“I always advise people to do their taxes as early as they can, partly because hackers can get their social security numbers and file false tax returns,” Katie Brewer, a Texas-based financial adviser told CBS MoneyWatch. Brewer also expects cuts to lead to longer wait times to have tax-related questions answered by phone, a particularly burdensome for older filers, who aren’t as tech savvy and might not be inclined to turn to the IRS’ website for advice, she added. 

When will I get my tax refund?

The IRS says that most refunds are issued in fewer than 21 calendar days, if you file your taxes electronically. It can take longer to get a refund on paper returns.

Taxpayers filing electronically can view the status of their 2025 refund using the IRS’ Where’s My Refund? tool.

Returns that require corrections or extra review could result in a delayed refund, the IRS notes. That’s why Brewer says it’s extra important to ensure that there are no errors on your return. 

“Sometimes people don’t double check things until after they hit send. But I really encourage to make sure not to mix up any numbers or accidentally add a zero because those are the kinds of things that hinder refunds or make it hard to deal with the IRS to correct them,” Brewer said.

Who counts on timely refunds?

Millions of Americans count on receiving their refunds in a timely manner, so that they can repay debt, put money into savings, or make a big purchase. 

“Particularly for working families who receive a child tax credit, or the earned income tax credit, these are often essential supports for Americans,” Williams said. “Low-income people use their tax refunds to pay off their winter heating bills, or to put money aside to cover spring clothes for their kids.”

She added that working-class Americans rely on their tax credits for financial stability. “That’s the purpose. To give people stability when they are working and have kids,” she said. “It’s not a spare $20 someone might be excited to receive as gift or surprise. It’s real money that underwrites the economic security of a very large number of Americans.”

The IRS last year piloted a new, free electronic service called Direct File, that provides public tax preparation services. It’s currently available to 30 million Americans in 25 states, and pulls one’s personal tax filing information directly from the IRS. Using such a service is one way to increase one’s chances of receiving a refund in a timely manner, according to Williams. 

Why haven’t I received my tax refund yet?

The IRS’ Where’s My Refund? tool will tell electronic filers what the status of their 2025 tax refund is 24 hours after they file a return, according to the agency’s website. Those filing by mail can view the status of their refund four weeks after they mail in their return. 

To use the tool, taxpayers need to enter their Social Security number, or ITIN, their filing status and exact dollar amount of their refund rounded to the nearest whole number.