According to The Independent, Americans could be waiting longer for their tax refunds this filing season as the Internal Revenue Service struggles with staff shortages and a growing backlog of returns.
Taxpayers who file amended returns face the highest risk of delays, according to an Axios analysis of Treasury reports. (Reuters)A recent watchdog report from the US Treasury Department warned that refunds could be delayed after the IRS lost about 27 percent of its workers starting in January 2025. The cuts leave the agency with fewer employees to process returns and respond to taxpayer inquiries, raising concerns as millions of files pile up ahead of the April deadline.
Staffing cuts leave the IRS stretched thinAn initiative overseen by billionaire Elon Musk early in the Trump administration has been cut by the Department of Government Efficiency (DOGE), The Independent reports.
Treasury officials warned that staffing losses could “cause delays in taxpayers receiving refunds,” noting that the IRS is struggling to manage both filed returns and ongoing correspondence from taxpayers.
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Revised returns are the most riskyTaxpayers who file amended returns face the highest risk of delays, according to an Axios analysis of Treasury reports cited by The Independent. Amended filings are typically used to correct mistakes involving income, deductions, dependents, tax credits or refund amounts.
The backlog of revised returns now stands at about 590,000, about 20,000 more than a year ago and almost four times the pre-pandemic level in 2019, the report found.
Last year, the average tax refund amount was $3,167, according to IRS statistics cited by The Independent.
Customer service access is also reducedBeyond processing delays, taxpayers can find it difficult to get help. The watchdog report revealed that the IRS lowered its telephone service goal from 85 percent to 70 percent, meaning fewer calls are expected to be answered during peak tax season.
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The report describes one agency struggling to meet demand as filings continue to come in.
Refund delays can cost the IRS billionsDelayed refunds incur a financial cost to the government. Under federal rules, the IRS must pay interest on refunds issued more than 45 days after the filing deadline, The Independent noted.
In 2025 alone, those interest payments totaled more than $2.6 billion, according to a Treasury report. For the first quarter of 2026, the interest rate on late returns is 7 percent, based on figures cited by The Independent.
