IRS Layoffs Could Slow Tax Refunds and Audits, Experts Warn Ahead of Filing Deadline

The tax filing deadline is just weeks away, but this year’s season comes with a warning: IRS layoffs could result in delays for millions of Americans.

NBC Palm Springs’ Kai Beach visited Elma’s Tax Services in Rancho Mirage, where staff are working overtime to help clients navigate what has become a challenging tax season.

“There’s a lot of fear,” says owner Elma Cortez. “People are waiting longer to file, and when we try to call the IRS, we often get messages saying they can’t take our call — we just have to try again later.”

Economic experts echo the concern. Eric Allen, assistant professor of accounting at UC Riverside, says the layoffs could not only slow down returns and refunds, but may also impact the IRS’s ability to conduct audits.

“A key part of any tax system is enforcement,” Allen explains. “If enforcement weakens, compliance drops. That could reduce government revenue, potentially leading to higher taxes down the line.”

For now, Elma’s advice is simple: file early to avoid issues — and be patient if delays occur.

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