IRS Layoffs in 2025 — Will They Delay Your Tax Refund?

Recent reports reveal that the IRS is laying off more than 6,000 employees in 2025 as part of restructuring efforts. This news has many taxpayers asking: “Will these layoffs delay my refund?”

Here’s what you need to know about how IRS staffing changes may affect refund processing, timelines, and what you should do if you’re waiting on money this year. IRS layoffs 2025 refund delays.

IRS Layoffs 2025 | Will Staff Cuts Delay Your Tax Refund?

What’s Happening at the IRS in 2025?

• The IRS has announced significant workforce cuts in 2025.

• Reports suggest more than 6,000 jobs are being eliminated.

• These cuts come as part of a restructuring following budget adjustments.

While IRS leadership claims refund processing won’t be heavily disrupted, taxpayers are concerned that reduced staff could slow down customer service and refunds.

Could Layoffs Impact Refund Processing?

The IRS processes more than 150 million tax returns each year. Staff shortages can impact:

1. Refund Delays

   • Fewer workers may slow down manual reviews and identity verification checks.

2. Customer Service Wait Times

   • Calling the IRS for help may mean longer hold times.

3. Error Resolution

   • Returns flagged with discrepancies could take longer to clear.

   • 
     

What Taxpayers Should Expect in 2025

• E-Filed Returns: Electronic filings with no issues should still be processed within the standard 21-day timeframe.

• Paper Returns: Expect possible delays, as fewer staff handle manual processing.

• Refunds With Credits (EITC/CTC): These may still face PATH Act delays, plus extra verification time.

• 
  

What You Can Do If Worried About Refund Delays

1. File Early

   • The earlier you file, the less likely you’ll get stuck in backlogs.

2. Use Direct Deposit

   • Always faster than paper checks.

3. Track With Transcripts

   • Instead of relying only on Where’s My Refund, check IRS transcripts for accurate codes.

4. Be Patient With Calls

   • Expect longer wait times when calling IRS phone lines.

   • 
     

FAQs on IRS layoffs 2025 refund delays.

Q1: Will all refunds be delayed in 2025?

No. Most simple electronic returns will still be processed within 21 days.

Q2: Are layoffs affecting Where’s My Refund updates?

Not directly. Delays would be more noticeable in manual reviews and customer service.

Q3: Should I be worried if I see IRS Code 570 or 971 this year?

Not necessarily. These codes are common; layoffs may extend timelines slightly.

Q4: How can I avoid refund problems in 2025?

File electronically, use direct deposit, and double-check all information before submitting.

Final Thoughts

The IRS layoffs in 2025 may slow refund processing for some taxpayers, especially those with complex returns or paper filings. However, most electronic refunds should still arrive on schedule. The best approach is to file early, use direct deposit, and stay updated through official IRS channels.

👉 Next: Read our guide on IRS Refund Delays 2025 to understand common causes beyond staffing issues.