Recent developments at the Internal Revenue Service are poised to create significant challenges for tax practitioners during the 2025 filing season. Despite initially accepting buyout offers from the Trump administration, essential IRS employees in Taxpayer Services, Information Technology, and Taxpayer Advocate Service units are now being required to work through May 15, extending beyond the tax filing deadline.
The mandated extension affects nearly half of the IRS's 100,000-person workforce, particularly those handling critical tax season operations such as processing returns, issuing refunds, and responding to practitioner inquiries. While this extension may help maintain basic services through the filing season, the broader workforce reduction efforts could lead to longer-term service disruptions.
Adding to practitioners' concerns, the IRS is operating under a government-wide hiring freeze, which has already resulted in rescinded job offers for new employees. This staffing constraint, combined with potential workforce reductions, may result in increased wait times for practitioner hotlines, delayed processing of returns and correspondence, and slower resolution of taxpayer account issues.
A particularly troubling development for tax professionals is the reported access to sensitive taxpayer information by Elon Musk's Department of Government Efficiency (DOGE) team. Congressional Democrats have raised alarms about unauthorized access to the Treasury's payment system, which contains confidential taxpayer data including names, addresses, Social Security numbers, and refund amounts. This access could potentially impact the timing and processing of client refunds, with some lawmakers suggesting the team might have discretion over refund disbursement.
For tax practices, these developments suggest the need for proactive measures. Practitioners should consider advising clients about potential delays in refund processing and resolution of account issues. It may be prudent to file returns as early as possible to minimize the impact of potential processing delays. Additionally, practices should maintain detailed records of all IRS communications and submissions, given the possibility of increased processing times and potential disruptions to normal IRS operations.
Looking ahead, tax professionals should prepare for a potentially challenging tax season with reduced IRS support services. While essential employees will remain through May 15, the long-term stability of IRS operations remains uncertain as the agency faces unprecedented workforce challenges and potential security concerns regarding taxpayer data access.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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