As President Donald Trump’s administration continues making significant cuts across the federal government, one agency facing heavy losses is the Internal Revenue Service.
Reports from Reuters and the New York Times indicate that over 6,000 IRS employees are expected to be laid off right as the tax-filing deadline approaches.
The IRS is not the only federal agency undergoing severe budget reductions. Others include the National Park Service, the United States Agency for International Development (USAID), the Consumer Financial Protection Bureau, the Department of Health and Human Services, and the Department of Education.
While tax accountants have traditionally advised filing early during tax season, this year’s recommendation is more critical than ever.
With the IRS experiencing thousands of layoffs, here’s what you need to know regarding the 2025 tax filing season, including filing dates, how to track your refund status, and more.
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How could IRS cuts affect the 2025 tax season?
According to several accountants, an IRS labor shortage during tax season could severely affect taxpayers seeking quick refunds or needing assistance. The IRS has already been struggling with staff shortages and issues with employee retention, as noted by the National Taxpayer Advocate, an independent entity within the IRS.
A mass layoff would undoubtedly influence the upcoming tax season, as Richard Pon, a certified public accountant in San Francisco, stated to USA TODAY on Wednesday.
The workforce shortage could result in:
- Having processing centers understaffed, particularly affecting the handling of paper returns, which typically require six to eight weeks. “You might see these periods increase to double, triple, or even quadruple,” he cautioned. The processing time for paper refund checks could also extend beyond the usual three to four weeks.
- Longer wait times on customer service lines. With layoffs, expect the situation to worsen, Pon warned.
- Closure of limited in-person service centers. “Typically, they also offer Saturday service centers in March or early April, but that option may be removed,” he remarked.
- An increase in processing time for correspondence and amended returns, which already takes four to six months, might double as these teams will likely have to take on additional responsibilities. The IRS has indicated they will “reallocate workers from other areas to assist with processing during filing season” to address the needs for this tax year.
- Reduced work availability for military personnel and their spouses, as highlighted by former IRS Commissioner Charles Rettig in a LinkedIn post. Almost 10% of current IRS employees, including “on probation” new hires, are veterans, he noted. Many IRS staff hired for the tax season are also the spouses of active military members.
When is the 2025 tax deadline?
The tax deadline this year will remain on the customary date of April 15.
Tax Day traditionally falls on this date unless it coincides with a weekend or holiday. This year, it lands on a Tuesday.
What is the deadline to file an extension?
According to the IRS, the deadline to file for an extension is April 15. This allows taxpayers until October 15 to submit their returns without incurring penalties.
Individuals affected by natural disasters automatically receive extended timelines.
Extensions can be requested through the IRS free of charge, either electronically or using paper form 4868, and only require taxpayers to submit basic details like their name, home address, Social Security number, and any owed payment. However, it’s important to note that the extension applies only to the tax return filing; any taxes owed must still be paid by the April 15 deadline.
What happens if I miss the tax deadline?
For those who forget or completely miss the deadline, the standard penalty is 5% of the tax due for each month the return is late, capping at 25% of the unpaid balance.
If you file your return but fail to pay any taxes owed, or if you request an extension but do not fulfill the payment, a smaller penalty of 0.5% will be applied.
How to check the status of your tax refund?
The IRS offers a tracking system called “Where is my refund?” for filers to receive updates on their tax refund status. Taxpayers can log in online or through the IRS2Go mobile app and check daily for updates on when to expect their funds.
Once logged into the tool, the information will refresh once daily, typically overnight. You can then see one of three possible statuses for your refund:
- Return Received – The IRS has received your return and is in the process of reviewing it.
- Refund Approved – Your refund has been approved by the IRS, and a date will be displayed for when it is expected to be issued.
- Refund Sent – The IRS has dispatched your refund to either your bank or has mailed it to you. It may take approximately five days for the funds to reflect in your bank account, or several weeks for a check to arrive.
Contributing: James Powel, Emily DeLetter, Eric Lagatta, Mary Walrath-Holdridge
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Connect with him at [email protected] and follow him on X @fern_cerv_.
Medora Lee is a money, markets, and personal finance reporter for USA TODAY. Reach her at [email protected] and subscribe to our free Daily Money newsletter for insights on personal finance and business news every Monday through Friday morning.
