A combination of resignations, cuts to taxpayer assistance programs, and current lack of senior leadership and staffing could slow down the IRS processes. It’s the time of year that everyone enjoys least: tax filing season. But, adding to this year’s anxieties are Donald Trump’s executive orders targeting various federal agencies, and the potential effect on taxpayer returns. A combination of resignations, cuts to taxpayer assistance programs, and current lack of senior leadership - the agencies former chief resigned on inauguration day - and staffing could slow down the Internal Revenue Service processes and leave people waiting for financial rebates.
![[A potential downsizing of the IRS workforce could significantly impact the service and its processes, causing delays for tax payers waiting on returns]](https://static.independent.co.uk/2025/02/04/16/51/iStock-171307444.jpg)
Since taking office on January 20, the president has signed a flurry of executive orders, including ones intended to downsize current branches of government and an administration initiative encouraging federal employees to resign or retire. The initiative, which began on January 28, is available to all federal employees until February 6. Tax filing season in the U.S. began on January 27 and a reduction in the IRS workforce of any size is likely to slow down the returns process, given it is the busiest time of the agency’s year.
In addition, the IRS estimates that with current and projected level of funding, by 2026 less than one in three taxpayers will get through to the service if they call. The IRS workforce is unlikely to expand any time soon. Trump has ordered that the tax collector be subject to an indefinite hiring freeze until his administration determines it is “in the national interest” to resume hiring. At other federal agencies the freeze is only for 90 days.
To make matters worse, Trump’s targeting of federal grants puts at risk the IRS’ Volunteer Income Tax Assistance and Tax Counseling for the Elderly schemes. Such schemes are important for low-income families who rely on receiving their rebates early as well as assistance to help them with processes including claiming benefits such as the Child Tax Credit. As well as cuts to grants and workforce, the IRS is currently awaiting the appointment of a full-time commissioner, after the early resignation of Daniel Werfel, who resigned on inauguration day – to years early.
