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Waiting on your tax refund? Here’s why the IRS may be delayed this season
With fewer employees, the IRS anticipates longer wait for tax refunds this season, potentially costing the government over $2.6 billion in interest payments.
Americans expecting their tax refunds this filing season could face longer wait times as the Internal Revenue Service struggles with staffing shortages and a growing backlog of returns, according to The Independent.
A recent watchdog report from the US Treasury Department warns that refund delays are likely after the IRS lost nearly 27 percent of its workforce since January 2025. The reduction has left the agency with fewer employees to process returns and respond to taxpayer inquiries, raising concerns as millions file ahead of the April deadline.
Staffing cuts leave IRS stretched thin
The workforce decline follows layoffs carried out by the Department of Government Efficiency (DOGE), an initiative overseen by billionaire Elon Musk during the early days of the Trump administration, The Independent reported.
Treasury officials cautioned that the staffing losses “could result in delays in taxpayers receiving refunds,” noting that the IRS is struggling to manage both filed returns and ongoing correspondence from taxpayers.
Also Read: Filing Form 1040 in 2026? How to prepare early for your 2025 federal tax return
Amended returns most at risk
Taxpayers who submitted amended returns face the highest risk of delays, according to an Axios analysis of the Treasury report cited by The Independent. Amended filings are typically used to correct mistakes involving income, deductions, dependents, tax credits, or refund amounts.
The backlog of amended returns now stands at nearly 590,000, roughly 20,000 higher than a year ago and about four times larger than pre-pandemic levels in 2019, the report found.
Last year, the average tax refund amounted to $3,167, according to IRS figures referenced by The Independent.
Customer service access also reduced
Beyond processing delays, taxpayers may find it harder to get help. The watchdog report revealed that the IRS has lowered its telephone service goal from 85 percent to 70 percent, meaning fewer calls are expected to be answered during peak tax season.
Also Read: IRS tax refund date 2026 update: Government shutdown could affect thousands; does deadline change?
The report described an agency struggling to keep up with demand as filings continue to arrive.
Refund delays could cost the IRS billions
Delayed refunds also carry a financial cost for 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 the Treasury report. For the first quarter of 2026, the interest rate on late refunds is 7 percent, based on figures cited by The Independent.
