Based on recent reports, IRS workforce changes and the implementation of its Strategic Operating Plan could potentially contribute to delays in receiving refunds in 2025.
Here's what to consider
· Staffing Changes: The
IRS workforce has reportedly experienced reductions, which could lead to
understaffing at processing centers, especially impacting paper returns and
refund checks.
· Increased
Audits: The IRS plans to increase audits on high-income taxpayers and
complex partnerships, which might redirect resources and potentially affect
other processing areas.
· Focus on
Modernization: The IRS is working to modernize its systems and processes
as part of its Strategic Operating Plan, which includes objectives like
improving taxpayer services and technology.
· Other Factors: Aside from the reorganization, other common factors can delay refunds, such as errors in tax returns, paper filing (instead of e-filing), claiming certain tax credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), incomplete information, identity verification issues, or back taxes owed.
What the IRS is doing to address potential
delays
· The IRS has
acknowledged staffing and backlog issues and states that it is working to add
staff and increase processing capacity.
· The IRS encourages
taxpayers to use the "Where's My Refund?" tool or IRS2Go mobile app
for status updates.
· Filing electronically and opting for direct deposit can help expedite refunds.
In conclusion, while the IRS is making efforts
to improve its operations, taxpayers should be aware of potential delays in
receiving refunds in 2025 due to a combination of reorganization-related
factors and other common issues. Filing early and accurately can help minimize
potential delays.
is irs reorganization causing delays in
receiving refunds 2025
Based on available information, IRS workforce reductions and related reorganization efforts in 2025 are a factor contributing to delays in processing tax refunds for some taxpayers
Here's a breakdown of the key factors involved:
· Workforce
Reductions: Planned layoffs and a hiring freeze have reduced the number of
IRS employees responsible for processing returns, handling inquiries, and
conducting audits.
· Understaffed Processing
Centers: Fewer staff lead to longer processing times, especially for paper
returns, which typically take longer to process than electronically filed
returns.
· Increased Workload and
Manual Reviews: A higher volume of paper returns than anticipated and
increased scrutiny for identity verification, errors, and specific credits like
the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are contributing
to slower processing times.
· Backlogs: The IRS entered 2025 with existing backlogs from previous years, exacerbating the impact of the current staff shortages.
Impact on taxpayers
· Longer Wait
Times: Taxpayers may experience extended waits for their refunds,
particularly if they filed by mail, have errors on their returns, or claimed
the EITC or CTC.
· Customer Service Challenges: Fewer IRS staff may lead to longer wait times on phone lines and reduced availability of in-person assistance at IRS offices.
It's important to note
· While most refunds are
generally issued within 21 days for electronically filed returns, delays of 30
days or more were common for returns filed in early April.
· The IRS cannot issue
refunds related to the EITC and ACTC before mid-February due to the PATH Act of
2015.
· The IRS is transitioning towards electronic payments for federal disbursements, including tax refunds, by September 30, 2025.
Taxpayers can monitor their refund status using the <<Link: "Where's My Refund?" tool on the IRS website https://www.irs.gov/refunds} or the IRS2Go app IRS (.gov). Tax professionals also recommend filing returns early in the tax season to potentially mitigate delays.
https://www.google.com/search?q=is+irs+reorganization+causing+delays+in+receiving+refunds+2025
Norb Leahy, Dunwoody GA Tea Party Leader
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