The IRS is set to lay off thousands of employees as part of a broader federal workforce reduction, raising concerns about potential disruptions in tax return processing, audits, and customer service. With fewer staff handling tax filings and taxpayer assistance, many Americans could face longer wait times and processing delays.
If you’re wondering how these layoffs might affect you, keep reading as we break down the key changes taxpayers may experience in 2025.
1. Expect significant delays
Even before the 2025 IRS layoffs, the agency struggled with backlogs—especially with processing Employee Retention Credit (ERC) claims, issuing refunds, and handling paper returns. With a reduced workforce, these delays are expected to worsen, impacting everything from tax return processing times to IRS correspondence.
2. Longer wait times for IRS assistance
If you need to contact the IRS for help, be prepared for extended wait times. With fewer customer service representatives available, getting assistance with tax issues, payment plans, or refund inquiries could take significantly longer.
3. Delays in paper return processing
Taxpayers who file paper returns may experience the longest delays. The IRS has already struggled with efficiently processing mailed-in tax returns, and with fewer employees, it could take months for physical returns to be reviewed and refunds to be issued.
4. Slower audits and tax disputes
If you are undergoing an IRS audit or have an open tax dispute, expect a lengthier resolution process. With fewer personnel managing audits and appeals, taxpayers may face longer wait times for responses and case resolutions.
5. Reduced IRS enforcement in some areas
The IRS has been focusing its enforcement efforts on high-income earners and tax evaders. However, with a shrinking workforce, fewer audits and collection efforts may take place for lower-income taxpayers. That said, it’s still crucial to stay compliant—penalties and interest continue to accumulate on unpaid taxes.
6. Limited live assistance for in-person taxpayer services
If you rely on IRS Taxpayer Assistance Centers for in-person help, expect fewer available appointments and longer wait times. Some centers may reduce operating hours or struggle to accommodate walk-in taxpayers due to staffing shortages.
Final Thoughts
The 2025 IRS layoffs are expected to cause significant disruptions, from delayed refunds to longer wait times for assistance. With fewer employees, taxpayers may experience slower processing times for returns, audits, and disputes. Those who rely on IRS support, whether through phone calls or in-person visits, should anticipate reduced availability and extended response times. As the tax season unfolds, the full impact of these workforce reductions will become clearer.
For more tips on getting through this year’s tax season with less worries, check out our article here.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
