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By Aliss Higham
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Americans expecting tax refunds this year may face longer-than-usual waits as the Internal Revenue Service (IRS) comes under growing strain following staffing reductions.
A recent Treasury Department watchdog report warns that staffing cuts and processing slowdowns are already straining the agency, and could leave millions waiting longer than expected for their money.
Newsweek has contacted the IRS for comment via email.
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Why It Matters
The annual filing season is when the IRS handles the bulk of individual tax returns, and is now open until April 15.
What to Know
But this year, that process is unfolding against a backdrop of layoffs, hiring delays and a growing pile of unprocessed paperwork.
According to the report, the IRS has lost roughly 17 percent of its workforce following staffing reductions in 2025. Those cuts have returned staffing levels to where they stood in October 2021, even as the volume of work waiting to be processed has grown.
The report warned that the reductions “could result in delays in taxpayers receiving refunds,” as the agency struggles to keep up with demand.
What’s Causing the Potential Delays
In its assessment, the Treasury report dated January 26 describes a department under pressure on several fronts.
“The annual tax return filing season is a critical time for the Internal Revenue Service (IRS) because it is when most individuals file their income tax returns and contact the IRS if they have questions,” the report reads. But it adds that “recent workforce reductions efforts returned IRS staffing to October 2021 levels,” just as key inventories—such as amended returns and taxpayer correspondence—have “significantly increased.”
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The report also points to delays in hiring seasonal staff, which were slowed by the government shutdown in the fall of 2025 and changes to the Treasury’s hiring process. At the same time, modernization projects meant to streamline operations have fallen behind schedule, meaning their expected efficiencies are unlikely to materialize this filing season.
The IRS authorized 2,200 new hires to help handle original and amended tax returns this filing season.
However, by late December only 50 workers—roughly 2 percent of the total—had actually been brought on, the report found. Training can take between 60 and 80 days.
The Cost to the Government
Delays do not just affect taxpayers - they also carry a price tag for the federal government. By law, the IRS must pay interest on refunds issued more than 45 days after the filing deadline.
In 2025 alone, that rule cost the agency more than $2.6 billion as of November 30, according to the Treasury report. With processing slowing further, similar costs could mount again if refunds are pushed back.
Best Way To Get Your Refund Quick
Despite the challenges, there are still ways to reduce the risk of delays. The IRS says the fastest option is to file electronically and choose direct deposit. Refunds from e-filed returns are typically issued within 21 days, and sometimes sooner if no errors or reviews are required.
For example, a taxpayer who files electronically on February 7 and has no issues flagged could expect their refund by February 28 at the latest. Selecting direct deposit may shorten that timeline even more.
Paper filers, however, should prepare for a longer wait. Mailed returns can take four weeks or more to process, and any mistakes or missing information can extend that period further.
Taxpayers can track their refund using the IRS “Where’s My Refund?” tool on the agency’s website. Electronic filers usually see updates within 24 hours, while those who file by mail can begin checking about four weeks after sending in their return.
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