(NewsNation) — The IRS has laid off 6,700 workers as part of President Donald Trump and Elon Musk’s goals with the Department of Government Efficiency (DOGE). These aren’t the only federal workers that have been laid off, but one of the biggest questions Americans have right now is, “Will the IRS layoffs impact my tax returns?”
It is hard to know for sure. Adam Brewer, a tax attorney with AB Tax Law, told NewsNation that it’s “not an ideal time for layoffs.” However, he doesn’t believe that it will affect many Americans, especially those who file electronically.
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These layoffs are happening as IRS employees who were involved in tax season were told earlier in February that they would not be allowed to accept the buyout offer from the Trump administration until mid-May, after the taxpayer-filling deadline.
How could your tax return be impacted by IRS layoffs?
If you file your return electronically, instead of by paper, then these layoffs might not affect your returns. “Those taxpayers who always file by paper, I would say this is the year to cut that out,” Brewer said. “You need to get with the times, so to speak.”
Vanessa Williamson, a senior fellow at the Urban-Brookings Tax Policy Center, told reporters that this could be a “disaster for revenue.” According to the Associated Press, Williamson said, “When you underpay and understaff the IRS, the agency doesn’t have the power or the resources it needs to go after wealthy tax evaders with their high-priced lawyers.”
Former President Joe Biden signed the Inflation Reduction Act in 2022, giving the IRS $80 billion and the ability to hire thousands of new employees to help with customer service and enforcement.
Are tax refund delays possible after IRS layoffs?
Democrats from the Senate Finance Committee have warned about possible tax refund delays. In a statement, they said, “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 efforts.”
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On the other hand, Brewer told NewsNation that, if you are someone who files electronically and receives your refund through direct deposit, there most likely won’t be a delay.
“But, let’s not take our eye off the ball. There’s also a government shutdown that is possible mid-March. And so, should that happen, you know, that’s really above my pay grade,” Brewer said. He also said he is more worried about the potential government shutdown causing delays.
