Trump’s Cuts Impact on Tax Season: What You Need to Know

As the Trump administration continues its aggressive cuts across the federal government, the Internal Revenue Service (IRS) has been hit particularly hard. Over 6,000 IRS employees are set to be laid off just as the tax-filing deadline approaches.

Impact on Tax Season

The IRS staff reductions have raised concerns among tax accountants and taxpayers alike. The National Taxpayer Advocate has warned that the IRS is already understaffed and struggles to hire and retain employees. With the additional layoffs, the agency’s ability to provide assistance and process refunds promptly could be severely compromised.

When to File

The tax-filing deadline for 2025 remains unchanged at April 15. However, with the IRS facing staffing shortages, tax experts strongly recommend filing your taxes early this year. By submitting your return sooner, you increase the chances of receiving your refund faster and avoid potential delays.

Extension Options

If you are unable to file by April 15, you can request an extension using Form 4868. This extension gives you until October 15 to file your return without penalties. However, it’s important to note that the extension only applies to filing the return itself. Any taxes owed must still be paid by April 15.

Penalties for Late Filing

For those who forget or miss the tax-filing deadline, the standard penalty is 5% of the tax due for every month the return is late, up to a maximum of 25% of the unpaid balance. If you file your return but fail to pay your taxes, a smaller penalty of 0.5% is added each month.

Checking Refund Status

To track the status of your tax refund, you can use the IRS’s "Where’s My Refund?" tool. This online or mobile app service allows you to log in and check for updates on your refund daily. Once you log in, you will see one of three potential statuses:

• Received: The IRS has received your return and is processing it.
• Approved: The IRS has approved your refund and is preparing to send it to you.
• Sent: Your refund has been sent.

Conclusion

The Trump administration’s cuts to the IRS are likely to have a significant impact on the 2025 tax season. Taxpayers should be aware of the potential delays and take steps to file their taxes early or request an extension if necessary. By staying informed and planning ahead, you can minimize the impact of the IRS layoffs on your tax return.

Contributing Authors:

• James Powel
• Emily DeLetter
• Eric Lagatta
• Mary Walrath-Holdridge
• Fernando Cervantes Jr.
• Medora Lee