02/21/2025

The Impacts of Potential IRS Layoffs

It could affect the future of tax filing

Much has been written recently about layoffs for federal workers across various departments of the federal government. Some are speculating that the IRS could lay off a large amount of their workforce, possibly during the middle of the 2025 tax season.

How Could This Immediately Affect Taxpayers and Tax Professionals?

The IRS is already under significant pressure during tax season, with millions of returns to process, refunds to issue, and inquiries to handle. The sudden reduction in staff—especially probationary employees who often support frontline operations—could have several immediate and long-term consequences:

Delays in Processing Tax Returns

Fewer employees mean fewer hands available to process returns efficiently. This could lead to delays in refunds, particularly for those who rely on them for financial stability.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.