IRS layoff, hiring freeze cast pall over filing peak
By: Amanda Wallace
NorthJersey.com
USA Today Network - New Jersey
..... As tax season kicks into full swing, President Donald Trump is working to reduce the number of employees at the IRS. This move marks the latest in a series of mass firings of federal workers with the reported goal of cutting down on government spending.
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As first reported by Reuters and The New York Times, the Trump administration began firing more than 6,000 IRS employees on Thursday. [02/20/2025] these job cuts are affecting probationary employees around the country who were recently hired, 5.000 of whom are part of the agency's compliance teams that deal with auditing and collection, The Times reported.
..... In addition to the firings, the IRS, among other federal agencies, are under a hiring freeze.
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with peak tax season on the horizon, the IRS can expect to be flooded with taxpayers; paperwork and questions over the coming weeks. Ahead of the April 15 [2025] deadline, the IRS expects more than 140 million individual tax returns to be filed. According to the taxpayer Advocate Service, the IRS already faced challenges in hiring and retaining qualified employees.
..... Amid the hiring freeze and mass layoffs, many are wondering whether the agency's effectiveness will be hampered during its busiest months.
..... As usual, experts are urging taxpayers to file early. However, the hiring frieze and layoffs may create a new sense of urgency, with refunds possibly being delayed, USA Today reported.
..... Last Thursday, [02/20/2025] Democratic members of the Senate Finance Committee wrote a letter to the Trump administration and IRS leadership, warning them that further staffing reductions could delay tax refunds, harm taxpayer services and undermine law enforcement efforts.
..... "Americans need the IRS to be fully staffed with employees who can answer their questions, process their returns, send them refunds, and keep IRS systems Online and functional," the letter said. "It is nearly inevitable that this hiring freeze, compounded by layoffs and further reductions in staff mandated as a result of Elon Musk's unprecedented power grab, will delay refunds and degrade taxpayer service."
..... the letter continued, 'Millions of Americans plan their budgets around timely refunds every filing season. these reckless decisions on the part of Elon Musk and the Trump administration will likely cause serious financial hardship for people across the country."
..... If you haven't filed your tax return yet, you can do so at any time before the April 15 [2025] deadline. Visit the IRS website at: irs.gov/filing/idividual.how-to-file for more information.
..... Earlier this month, [02/2025] Musk posted on X that the team that developed IRS Direct File, a free service that allows people to prepare and electronically file their tax returns, had been deleted. However, the New Jersey Division of Taxation said Direct File is still available for qualifying state residents.
..... The layoffs could affect the number of audits conducted by the IRS this year, [2025] with Reuters reporting that the layoffs will hit a range of roles including auditors across the country.
..... Investopedia said the IRS reportedly audits less than 1% of individual tax returns each year.