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As the IRS faces historic workforce reductions and office closures, millions of taxpayers may experience slower refunds, longer response times, and reduced access to help — just as the next filing season begins.
IRS staffing cuts and office closures take effect, taxpayers and businesses alike face growing uncertainty about refunds, audits, and response times.
What’s Happening at the IRS?
The IRS has confirmed major operational downsizing through the second half of 2025.
According to multiple official sources:
- IRS workforce reductions: Staffing has fallen by about 25% since early 2025, dropping from roughly 103,000 employees to fewer than 77,000 by mid-year. (Forbes)
- Office closures: The IRS has begun shutting down nine Taxpayer Assistance Centers (TACs) across six states — including New York, Pennsylvania, Iowa, Kentucky, and California — as part of cost-saving reforms. (CPA Practice Advisor)
- Government shutdown furloughs: Roughly 34,000 IRS employees — nearly half of its workforce — were furloughed beginning October 8, 2025, during the ongoing federal funding lapse. (The Guardian)
- Technology & IT reductions: IT positions have been cut by more than 50%, raising concerns about slower modernization and delayed taxpayer correspondence. (NextGov)
These cuts are framed as part of a broader effort to modernize operations, but with fewer employees and fewer service centers, taxpayers may experience tangible delays and confusion.
How Taxpayer Services Are Being Impacted
- Refund Delays: The IRS has warned that only error-free electronic returns with direct deposit will continue to be processed normally. Paper or amended returns may see significant delays. (IRS.gov)
- Limited Assistance: Many Taxpayer Assistance Centers are closed, and phone lines have been drastically reduced. Appointments are being postponed until operations stabilize.
- Audit & Compliance Slowdown: With fewer revenue agents, audit reviews and appeal cases are being pushed back. Businesses and individuals waiting on adjustments may need to plan for longer timelines. (TIGTA)
- Mail Backlogs: Paper filings and correspondence continue to accumulate, further delaying responses for amended returns or notices.
What This Means for Taxpayers & Businesses
While IRS operations continue, reduced staffing and budget constraints mean slower communication and limited availability.
Taxpayers should expect:
- Longer refund times — particularly for paper or amended filings.
- Increased error risk — due to reduced review staff and system load.
- Reduced in-person support — TACs and local offices remain closed in multiple regions.
- Extended audit response windows — audits and appeals may take months longer to process.
For small businesses, payroll reconciliations, employment tax issues, and quarterly filings may also take longer to update or verify — especially when manual review is needed.
How to Protect Yourself and Avoid Delays
- File early and electronically. The IRS prioritizes e-filed returns with direct deposit.
- Keep organized records. Maintain digital copies of W-2s, 1099s, receipts, and correspondence.
- Don’t ignore notices. Even if IRS response times are slow, reply promptly to avoid penalties.
- Use secure online tools. The IRS.gov “Where’s My Refund?” and “Get Transcript” tools remain active.
- Seek professional help. Tax professionals can communicate effectively with the IRS, help avoid filing mistakes, and navigate potential delays.
Frequently Asked Questions (FAQ)
Will my 2025 tax refund be delayed?
Possibly. If you file electronically with direct deposit and no errors, you may still receive your refund on time. Paper returns or amended filings are more likely to be delayed during workforce shortages.
Are Taxpayer Assistance Centers open?
Many TACs are temporarily closed or operating at reduced capacity. Check availability before visiting, or use online tools for faster assistance.
Can I delay filing my taxes due to the shutdown?
No. Tax deadlines and payment obligations remain in effect even when IRS operations are limited.
Will audits and IRS notices take longer?
Yes. With fewer auditors and support staff, most audit reviews, appeals, and notice responses will be delayed significantly.
Is electronic filing still safe during IRS staffing cuts?
Yes. Electronic filing is still the fastest and most secure method for both individual and business returns. Direct deposit remains the best option for timely refunds.
Can a tax professional help speed things up?
While no one can skip the IRS backlog, a qualified tax professional can ensure accurate filings, proper documentation, and timely responses — reducing your risk of errors or penalties.
Bottom Line
The IRS staffing cuts and office closures come at a critical time, potentially affecting millions of taxpayers heading into the 2026 filing season. Staying organized, filing early, and relying on verified information are essential for minimizing disruptions.
Schedule a free consultation today and get expert help managing your tax situation in a changing IRS landscape.
Helpful Resources
- IRS Newsroom – Official Updates
- Treasury Inspector General for Tax Administration (TIGTA)
- National Taxpayer Advocate Reports
- IRS Local Office Directory
Amro Badran, EA is the Managing Partner of BadranTax LLC,
Experienced and Trusted Tax Resolution Firm based in New Brunswick, NJ.
With over 40 years of experience and accreditation as a Federal Enrolled Agent, Amro Badran and his team of experts specialize in helping individuals and businesses resolve complex IRS issues and controversies.
