The 2025 tax filing season is facing heightened uncertainty as the new administration pushes for a major restructuring of the IRS, including budget cuts, workforce reductions, and even discussions about dismantling the agency.
Amid reports of potential delays in tax processing and refunds, tax experts advise filers to submit their returns as early as possible to avoid complications.
According to CNBC, Alina Habba, who serves as a Counselor to President Donald Trump, stated at a conservative conference on February 20 that “the IRS is undergoing massive layoffs today.” Her remarks followed reports that between 6,000 and 7,000 IRS employees were expected to be dismissed.
Additionally, Secretary of Commerce Howard Lutnick told Fox News on February 19 that Trump aims to eliminate the IRS and shift the tax burden onto foreign corporations.
Despite such statements, experts clarify that fundamental changes to the federal tax system cannot happen overnight. Kathleen Delaney Thomas, a professor at the University of North Carolina, emphasized that “only Congress has the authority to amend federal tax laws.”
Still, some Democratic lawmakers have warned that IRS budget cuts and staff reductions could result in processing delays for tax refunds.
CPA Kiwook Uhm advised taxpayers to stay proactive amid the uncertainty. “The situation is chaotic, but taxpayers must still file on time. Those expecting refunds should submit their returns as soon as possible,” he said.
With fewer IRS employees, paper tax filings are expected to experience even longer processing times. Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, recommends electronic filing as the most efficient and secure option during this uncertain period.
To help taxpayers expedite the filing process, the IRS has outlined six key tips for filing taxes quickly and accurately.
Prepare documents in advance
Missing or incorrect documents can lead to errors, delays in processing, or missed deductions and credits. Ensuring all tax-related paperwork is ready before filing is crucial.
Report all income
Underreporting income can result in additional tax bills or penalties from the IRS. This includes earnings from gig work, freelance jobs, and investment income.
Use electronic filing (e-File)
Filing taxes electronically is the fastest and safest method, reducing errors and expediting refunds.
Utilize free filing option
This year, the IRS has introduced Direct File, a free tax filing option available in 25 states, including California. It is designed for individuals with straightforward tax situations, such as those reporting only W-2 income.
Hire a tax professional
Taxpayers can seek assistance from tax preparation services or hire certified professionals to ensure accurate filings. The IRS website (IRS.gov) provides a directory of trusted tax preparers.
Use IRS online tools
The IRS website offers 24/7 access to tools for checking refund status, making payments, and using tax calculators.
With uncertainty surrounding IRS operations, taxpayers are encouraged to file early, utilize electronic services, and seek professional guidance if needed to ensure a smooth filing process.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
