The deadline for most American taxpayers to file their tax returns is April 15. Most of them are keeping track on the status of their tax refunds. Despite staff cuts at the Internal Revenue Service (IRS) and rumours of a probable government shutdown, operations remained stable until mid-March.
As of March 7, the IRS has processed 43.6 million refunds, totaling $145,063 million, according to official data. This marks a 7.2% increase over the previous year, with an additional $3,324 million, or 5.7% more.
Are delays expected in tax refunds?
However, tax professionals warn that pressure onĀ the IRS could intensify in the coming weeks. Tom OāSaben, head of the National Association of Tax Professionals, said: āI hope that wonāt be the case as volume increases here in the last 30 days of the season.ā
So far, no widespreadĀ delaysĀ in returns have beenĀ reported,Ā as long as returns areĀ filed electronicallyĀ and without errors. However, the 2.1% reduction in total returns processed and the 44% drop in visits to IRS.gov raise questions about efficiency in the final stretch of the season.
DOGE cuts at the IRS: refunds could be affected
The uncertainty is exacerbated by IRS staff layoffs in late February and the Department of Government Efficiency (DOGE)‘s preliminary intentions to terminate leases at hundreds of local offices. Although some closures were restored, experts such as Jim Simpson, an accountant in Arizona, warn of operational risks: “This will cause more chaos [ā¦].” “It should be done surgically, not with a chainsaw.”
According to an unidentified source reported by the Associated Press, DOGE’s plans to cancel leases at taxpayer help centres were incorrect and were suspended. However, the department’s latest list still includes several places scheduled for closure, which has caused uncertainty among officials and citizens.
Martin Smith, a tax specialist we consult, recommends electronic filing as the preferred approach. “If you send a paper return, someone from the IRS has to be there to open the envelope [ā¦].” We witnessed with the epidemic that this is not done until too late.” The IRS has repeated that in the event of a government shutdown, it will have enough personnel to run vital operations for at least five days.
Despite the hurdles, the agency has avoided severe delays, even after the initial round of layoffs. The $135.281 million in reimbursements processed in 2024 differs from the $145.063 million issued this year, indicating an increase in individual amounts. However, experts caution that these data may be revised once late returns are completed.
One significant trend is a reduction in early repayments, which normally account for one-third of the annual total. This fluctuation could be influenced by factors like as legislative changes, increased form complexity, or institutional distrust, though the IRS has not responded.