Could the IRS hire freezer delay tax refund? What we know

The IRS is locked in an employment freezing after President Donald Trump issued an executive order to stop all federal employment activities and mandate union workers’ return to the office. Freeze has raised concern that this may cause delays in receiving tax refund.

Why it matters

Americans typically expect to see their tax fusions within a few weeks of submitting their returns. But if the IRS is experiencing staff shortages, the ability to treat returns could be at risk as quickly as in previous years.

What to know

There is no current end date for IRS employment of freezing. This decision will eventually be left to the newly appointed Treasury Secretary Scott Bessent.

Freeze also means that everyone employed by the IRS with a start date after February 8 will see that the job offer is being revoked.

How Trump’s executive order could affect tax fusions

Due to the freezer, the agency could face staff shortages and lower customer service companies, which potentially affect the time of taxation.

The IRS expects to receive 140 million individual tax returns this year, and those who later archive may have a longer wait for their tax fusions to arrive.

The average refund will still probably be around $ 3,100, but the timeline of when this money arrives can be changed this year as the IRS deals with staff shortages that result from employment freezing and return to the office manner.

IRS refund plan

Most tax fusions are issued within 21 days of archiving, but the exact timing may vary depending on whether you are filing electronically or per. Mail or your return processing corrections.

What is the standard deduction for the 2024 year?

The default deduction is now $ 29,200 for married couples who archived together up $ 1,500 from the tax year 2023. For single files, the standard deduction jumped $ 750 to $ 14,600.

What is the deadline to archive?

While the tax archive system opened in January, taxpayers still have a few months to have their tax returns filed on time.

The final deadline for filing is April 15, unless you have a federally approved exception.

What people say

Former IRS -Commissioner Charles Rettig wrote on LinkedIn: “Each facet of IRS operations will be significantly influenced by the current employment freezing. Fortunately, the IRS employees are resistant and have considerable experience in hiring freezing operations.”

Michael Ryan, founder of Michaelryanmoney.com, told Newsweek: “The IRS employment of Freeze creates a perfect storm for delays during the tax season, especially for complex returns that require manual review. While over 90 percent of the refund is still being treated automatically, Hamstrings IRS’s ability to handle exceptions and maintain service levels.”

Kevin Thompson, founder and CEO of 9i Capital Group, told Newsweek: “Employment freezing may cause some delays, but I don’t expect any major problems at this point. If your tax refusing is delayed, the IRS turn back.

Alex Beee, an instructor in financial literacy at the University of Tennessee in Martin, told Newsweek: “Even with the current employment freezing, the IRS has expanded its employee base in recent years during the Biden administration, which means that in the short term they should still have more than enough staff to handle this tax season and reduce the risk of any delay in the treatment of refund .

He continued: “However, the end of telecommunications work under President Trump’s executive order could signal that some IRS employees are leaving or going back early if they are eligible. Whether it will be a significant amount that is left to see but that is fair to say the future of that IRS will depend on a more limited staff and it can add time to the treatment of returns.

Eric Green, partner at Green & Sklarz and founder of Tax Rep Network, told Newsweek: “The reduction in the workforce will definitely have a problem with not only refund but everything going on in front of IR’s help taxpayers, or get something resolved, becomes a huge problem, especially for taxpayers trying to find out things on their own. On IRS or get something done that is not automated will be a problem.

What happens next

To reduce their chances of a repayment delay, taxpayers should submit early and ensure that there are no errors in their first submission before any return after the return hits.

Ryan said the employment freezing could be particularly tough on manual reviews of returns with discrepancies as well as dissolution of identity theft. Customer Service Service times will also be affected, as the treatment of changed returns that is likely to be backed up.

“The irony is that this freezing is coming, just as the IRS finally caught up from Pandemic-Era’s demands. Like taking the engine out of a car, just as it picks up speed,” Ryan said.