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IRS Overwhelmed: Staffing Issues Delay Review of Some Tax Cases

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Taxpayers attempting to contact the IRS for assistance this tax filing season may encounter increased difficulty in reaching a representative, according to experts. The situation is anticipated to deteriorate further next year due to projected staffing reductions that could significantly decrease the agency’s workforce.

The current data concerning tax return processing times aligns closely with figures from the previous year. IRS personnel involved in the 2025 tax season were prohibited from accepting a buyout offer initiated by the Trump administration until after the April 15 taxpayer filing deadline. In the meantime, thousands of probationary employees were laid off earlier this year.

Experts in legal tax compliance suggest that wait times will likely increase as more buyouts and layoffs are implemented. Eric Santos, the executive director of the Georgia Tax Clinic, which offers free tax law services to low-income individuals, noted that the wait times for the IRS phone line are unusually long, and the staff is overburdened by a growing workload. According to Santos, IRS staff are often unable to review certain cases due to time constraints, with labor being distributed among a shrinking number of employees.

The workforce reduction—potentially affecting nearly half of the entire IRS workforce—is part of an effort by the Trump administration to downsize the federal workforce. This initiative, led by Elon Musk’s Department of Government Efficiency, aims to close agencies, dismiss almost all probationary employees without civil service protection, and extend buyouts to almost all federal employees through a “deferred resignation program.”

Earlier this month, the IRS initiated layoffs that could lead to the dismissal of up to 20,000 staff members, equating to as much as 25% of the total workforce. Approximately 7,000 probationary IRS employees, who were laid off starting in February, have been ordered by a federal judge to be reinstated, though it remains uncertain if they have resumed work.

Comparative data from the first week of April for 2024 and 2025 shows 101.4 million returns were processed this year, slightly less than the 101.8 million tax returns last year. The number of refunds has increased, with 67.7 million issued this year compared to 66.7 million in 2024.

Santos, along with others, express concern that the 2026 filing season could be adversely affected by the impending loss of thousands more tax collection workers, expected to leave through planned layoffs and buyouts. Santos questioned the agency’s ability to handle next year’s tax filing season effectively.

A Treasury spokesperson, requesting anonymity, stated that the IRS staffing reductions are part of broader improvements intended to enhance efficiency and service delivery. Sakinah Tillman, director of the University of the District of Columbia Tax Clinic, has not observed a delay in refund processing this year but has experienced delays in reaching the IRS by phone. She is concerned that these phone delays might hinder clients involved in collections who are attempting to resolve their debts.

Former IRS Commissioner John Koskinen remarked that the IRS’s responsiveness typically decreases as the tax season progresses. He warned that if the workforce is reduced by 10,000 or 20,000 employees next year, it may lead to a significant decline in taxpayer service via phone lines, turning the taxpayer priority line into an “oxymoron.”

This report was originally published on Fortune.com.

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