IRS Staff Cuts at the Height of Tax Season

Senate Democrats have expressed concerns to the Department of the Treasury and the Internal Revenue Service leadership about the potential “catastrophic impact” of IRS staff cuts and hiring freezes. The timing is especially critical, falling right at the peak of the annual filing season.

They reference President Trump’s executive orders that froze federal hiring and the dismissal of probationary federal government employees with limited exceptions for national security and public safety.

Many stakeholders have complained about the IRS’s service levels, especially since the pandemic. While services have improved dramatically since the worst of the pandemic times, these layoffs threaten to undo that progress. It’s reasonable to anticipate that significant staffing cuts at the IRS would lead to taxpayers having greater difficulty getting assistance with filing their tax returns, and having to wait longer to receive tax refunds.

Even without these latest moves by the Trump administration, the IRS is facing an impending human resources gap with nearly two thirds of current IRS employees either eligible to retire now or becoming eligible within the next five years.

The most effective strategy to deal with potential problems at the IRS is to file accurate returns early. Schreiber Accounting and Advisory can help with business, individual, and nonprofit tax compliance and planning services. If you need the assistance of a qualified CPA firm, contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.