Tax Refunds: Big Update for IRS Tax Refund Delays

Where’s My Refund? Impact of IRS Layoffs on Tax Return Processing Time and How to Check Status

If you’re hoping to find some extra cash or pay off debts, a tax refund can be quite beneficial. The Internal Revenue Service started accepting tax returns from individuals on January 27.

According to IRS statistics, nearly 140 million Americans are projected to file their taxes. But when can you expect that check or direct deposit? Are there potential delays?

Here’s what you need to know regarding tax deadlines, how to track your refund status, and when to anticipate your return.

How to Check the Status of Your Refund

On the IRS.gov website, taxpayers who have submitted their returns can find their refund status using the “Where’s My Refund?” tool. To access the status, you’ll need to input the following details:

  • Your Social Security or Individual Taxpayer Identification Number (ITIN)
  • Your filing status
  • The exact amount of your refund as reported on your tax return

Once you have provided this information, you will see one of the following status messages:

Will IRS Layoffs Delay My Refund?

As reported by USA TODAY, up to 15,000 newly hired IRS employees, mainly in entry-level positions such as taxpayer assistance, phone support, and junior auditing roles, could face layoffs in the coming week. These employees are still on probation and do not have civil service protections.

With around 90,000 full-time staff, the IRS could see a potential reduction of approximately 17 percent of its workforce due to these layoffs.

At this point, it remains uncertain how these layoffs might affect the processing time for tax returns this year.

How Long Until My Refund is Deposited?

The timeframe for receiving your refund largely depends on your filing method.

Filing electronically usually results in a faster processing time compared to filing a paper return and waiting for a check. According to the IRS, most refunds are processed within three weeks.

The IRS advises taxpayers against relying on receiving their refund by a specific date, especially when planning significant purchases or bills, as some returns may require additional review, which could extend processing times.

What Causes Refund Delays?

There are several reasons a tax return may be delayed. Here are the most common factors identified by the IRS:

  • Errors or incomplete information on the return, or issues related to identity theft or fraud.
  • Corrections needed for amounts related to the child tax credit or recovery rebate credit.
  • A claim for earned income tax credit or additional child tax credit, or the inclusion of Form 8379, Injured Spouse Allocation PDF.
  • The duration it takes for your bank or credit union to process the refund to your account.

What is the Deadline for Filing Taxes?

Federal income tax returns for 2024 must be submitted by April 15, 2025. Americans living abroad are granted an extended deadline of June 16, 2025.

The IRS specifies that the timestamp in your local time zone when you file your electronic return determines its timeliness. For paper submissions, the IRS considers them timely if they are properly addressed, have adequate postage, and are mailed and postmarked by the due date. For electronic filers, the deadline is 11:59 p.m. local time.

Trump Big Orders: Federal IRS Job Cuts Amid Tax Season Scrutiny

As Elon Musk’s Department of Government Efficiency (DOGE) initiates its audit of “inefficient” employees within the federal government, President Donald Trump has reportedly ordered the termination of thousands of personnel from the US Internal Revenue Service, as indicated by news agency Reuters, based on sources close to the situation.

This decision may strain the resources of the tax-collecting agency during the crucial tax-filing period.

Officials from the Office of Personnel Management, responsible for federal hiring practices, directed all federal agencies on Thursday to let go of their probationary employees, who lack full job security.

The Reuters report mentions that the exact number of IRS employees to be dismissed remains unclear.

What is the size of the IRS workforce?

During former President Joe Biden’s tenure, the workforce of the US IRS grew to approximately 100,000 staff members, which includes about 16,000 probationary employees.

Biden aimed to enhance the efficiency of the agency, especially in its capacity to conduct audits on corporations and wealthy individuals.

The IRS continues to operate for several months beyond the deadline, working on tax returns and issuing refunds to taxpayers.

Who will be affected by the IRS layoffs?

The layoffs will focus on all probationary staff who did not opt out through a now-closed buyout program or those who have not been classified as essential for navigating the ongoing tax season, which intensifies as the federal return filing deadline of April 15 approaches, according to a source familiar with the matter, as reported by Reuters.

What is the rationale behind these job cuts?

The IRS layoffs, initially reported by the New York Times, form part of a broader initiative led by President Donald Trump and Elon Musk to reform the federal government, which they contend is excessively large and inefficient, laden with waste and fraud.

The IRS has yet to provide a comment on the situation.

Another insider expressed concerns that the layoffs could happen without adequate assessment of their potential impact on the agency’s functions.

“They are aiming to cut numbers across the board without evaluating the consequences on operations,” the source told Reuters.