.png&description=2025 Tax Season Alert: Why You Need to File Early This Year){kind=link}
2025 Tax Season Alert: Why You Need to File Early This Year
Government cutbacks are about to hit your tax refund timing. Here's why you shouldn't wait to file this year...
.png)
Hey there! We've all heard accountants tell us to "file early" during tax season, but this year, there's actually a real urgency behind that advice. With the IRS facing a potential staffing crisis, your refund check could be seriously delayed if you wait too long. Trust me, this isn't just the usual tax preparer fear-mongering – it's looking pretty serious this time around.
What We'll Cover
What's Happening at the IRS?
The IRS is facing what experts are calling a "double whammy" – a hiring freeze combined with the possibility of losing thousands of employees in the coming weeks. This is all part of President Trump's aggressive efforts to downsize the federal government.
If you've been following the news, you know that cost-cutting measures have already hit several agencies, including the Consumer Financial Protection Bureau and Departments of Education and Health. Now the IRS is squarely in the crosshairs, and the timing couldn't be worse – right in the middle of tax season.
The National Taxpayer Advocate has already been complaining about IRS understaffing for years. In their 2024 Annual Report to Congress, they specifically mentioned phone service as "one of the most serious problems impacting taxpayers." And that was before these new cuts!
How This Might Affect Your Refund
According to Richard Pon, a CPA in San Francisco, these cuts are gonna hit hard. Like, immediately. Here's what we're potentially looking at:
- Slower processing of paper returns - What normally takes 6-8 weeks could stretch to months. Paper refund checks will likely be delayed well beyond the usual 3-4 week timeframe.
- Endless customer service wait times - Those infamously long IRS phone queues? They're about to get so much worse.
- Shuttered service centers - The few in-person service centers that exist may close, and the traditional Saturday service centers in March and April will likely be eliminated.
- Correspondence and amended return delays - Processing times could double from the current 4-6 month window as teams are forced to shift to other duties.
Between us, millions of Americans plan their budgets around getting those refund checks in a timely manner. Any significant delays could cause real financial hardship, especially for families counting on that money for bills or necessary expenses.
Who Actually Benefits from IRS Cuts?
Look, I'm not one to get all political, but it's worth asking: who wins when the IRS gets gutted? According to former IRS Commissioner Charles Rettig, the answer is pretty clear: non-compliant taxpayers.
"An underfunded IRS significantly benefits unidentified, noncompliant taxpayers at the direct expense of compliant taxpayers." - Charles Rettig, former IRS Commissioner
With fewer specialized examiners, complex audits will likely fall by the wayside. So if you've been playing by the rules and paying what you owe, you're essentially subsidizing those who don't. Not exactly fair, is it?
Also worth noting: about 10% of current IRS employees are military veterans, and many seasonal IRS workers are spouses of active military personnel. These cuts will disproportionately impact these groups as well.
What You Should Do Right Now
So with all this doom and gloom, what's a taxpayer to do? Here are some practical steps to protect yourself:
- File early - Like, seriously, do it ASAP. This is especially important if you're filing a paper return or expecting a refund by check.
- Choose direct deposit - E-filing with direct deposit can get you your refund in as little as 8 days, compared to weeks or months for paper options.
- Call early in the day - If you need to contact the IRS, try calling as early as 7 a.m. Eastern Time when lines are less busy and more likely to be fully staffed.
- Resolve open issues quickly - If you have ongoing audits or NTA claims, try to settle them ASAP. Many IRS employees may be gone by April.
Senate Democrats have warned that "millions of Americans plan their budgets around timely refunds every filing season" and these cuts could "cause serious financial hardship for people across the country." Don't get caught in the crossfire of these political decisions.
Smart Tips for a Smoother Tax Season
Beyond the basics, here are a few extra tips to help navigate this challenging tax season:
The Bottom Line
Listen, tax season is stressful enough without having to worry about whether the IRS has enough staff to process your return. But that's where we are in 2025. The good news is that by being proactive, you can minimize the impact these cuts have on your financial life.
Don't wait until April to start thinking about your taxes this year. The early bird doesn't just get the worm – they get their refund check when they actually need it.
Have you already filed your taxes this year? Or are you waiting until the last minute? Drop a comment below and let me know your tax filing strategy!
This article is based on reporting from USA TODAY and expert insights from tax professionals. While we strive to provide accurate information, tax situations vary by individual. Consult with a tax professional for advice specific to your situation.