IRS Layoffs Could Delay Tax Filings and Refunds, Experts Warn

The deadline to file your taxes is quickly approaching, and this year, economic experts are warning that recent layoffs at the IRS could lead to significant delays in processing your returns. At Alma's Tax Service & Bookkeeping in Rancho Mirage, the team is working tirelessly to help clients meet their filing deadlines. However, many clients are expressing concerns over the disruptions caused by the IRS layoffs, which are already making communication with the agency difficult.

Alma Cortez, who has been in the tax business for years, notes that this tax season feels much different from others. "People are waiting longer to do their taxes, and when we try to reach the IRS, we’re often met with the message, ‘We cannot take your call at this time,’" she says. "We just have to keep trying."

Eric Allen, an assistant professor of accounting at UC Riverside, warns that the recent IRS cuts could lead to delays in processing returns, issuing refunds, and even negotiating resolutions for tax issues. However, the biggest concern is the potential impact on audits. Without adequate enforcement, the system may see less compliance, which could result in a loss of revenue and, eventually, higher taxes for everyone.

Elma suggests that the best way to avoid any issues is to file your taxes as early as possible. While the tax season may be slower than usual, early filing can help ensure smoother processing.