What DOGE Firings Mean for the IRS and Your Taxes

Are you concerned about the impact of DOGE firings on your taxes? Every year, most Americans will have to go through the process of filing taxes with the IRS. From tediously gathering tax documents to navigating new legislation changes and trying to minimize the amount due, it’s no surprise that Americans dread tax time.  

This year, tax time might look a little different, especially after DOGE has announced the shrinkage of the federal workforce. In this article, we’ll expand on the current situation, highlight five ways that DOGE firings might impact your taxes, and offer three proactive steps you can take this filing season.  

Remember, this article isn’t a substitute for professional tax advice. If you have any questions or concerns related to your specific tax situation, reach out to one of our experts today to set up your free consultation.  

So, what’s really going on with the IRS? On January 20, 2025, a hiring freeze went into effect, meaning that no current open positions could be filled with new staff members. Then, on February 20, 2025, the IRS began laying off probationary employees and recent hirings. This equated to about 6,000 employees, or 6% of the total IRS workforce, being let go.  

Moreover, part of the plan to improve government efficiency is to eliminate remote work. By March 10, 2025, in-person work is required for employees not on work agreements and within a 50-mile radius of an office location. In the upcoming months, Phases 2 and 3 will go into effect, which requires all federal workers to return to an office location.  

Since returning to in-person work isn’t ideal for everyone, the government offered a deferred resignation program. Under this program, employees could resign and still receive paychecks through September 30, 2025. However, IRS employees who took advantage of this program are not eligible to end work until mid-May.  

Adding another layer of complexity to DOGE firings is a potential government shutdown. If a new budget is not passed by March 14, 2025, a potential federal government shutdown could occur. A government shutdown would severely limit the IRS. While normal filing obligations are still in place, access to agents, technical difficulties, and other adverse implications could occur.  

DOGE firings can impact your taxes this filing season. Here are five potential implications of IRS firings on your taxes:  

1. Longer Support Wait Times 

Since the IRS is cutting its workforce, there will be fewer agents available for support. For one, if you need to call the IRS, expect long wait times. If you are lucky enough to get an agent on the phone without waiting hours, be prepared to have all of your information ready to go. Failure to have just one document could result in the need to call again. For example, if you don’t answer security questions correctly, the agent might refuse to continue the conversation, leaving you to repeat the process.  

2. Delayed Refunds  

Although the IRS does have automated quality control and error checks, human oversight is still needed. Without the proper backend support, your refund could take longer to process. The IRS automatically flags large refunds for review. If you have an unusual or complex transaction that generates a large refund, don’t expect your refund in the normal 21-day period.  

For example, if you are claiming a loss from your business, the IRS may pull your return for review. With recent layoffs, current IRS employees may not have the capacity to process your return right away. Even worse, if more information is needed, you could be stuck going back and forth with an IRS agent for months.   

3. Extended Processing Times  

If the IRS does need more information to process your return, the process could drag on for months. For example, if you forgot to attach an important document or explanation to your return, the IRS will mail you a letter requesting more information. Calling the IRS to resolve the issue might not be an option if you need to mail documents. Without the necessary backend support, your filing could be delayed, meaning your refund will also be on hold.  

Extended processing times can also be a harsh reality for retroactive legislative changes. For example, there have been talks about changing certain credits and deductions. If these changes do impact your filing, you may need to amend your return. With fewer employees to process these changes, your amended filing could sit in processing for months.  

4. Filing Method Matters 

With the IRS fully staffed, you had options when it comes to filing your return. However, with the IRS dropping 6% of its workforce in one day alone, electronic filing is now the preferred method for the IRS. Although you can still file returns on paper, expect delays. With fewer staff available to manually enter and process paper returns, your return could sit in a queue for months.  

Similarly, paper returns increase the likelihood of the IRS never receiving your return. For example, if your return is lost in the mail, the IRS might impose late filing penalties and interest even if you mailed your filing by the deadline.  

Additionally, DOGE has hinted at eliminating sending tax refunds in the form of checks. Although paper checks won’t be eliminated this year, setting your refund up for direct deposit is the best way to avoid delays, such as lost checks. If your return gets selected for a review or the IRS needs more information, having direct deposit established can expedite the refund process.  

5. Fewer Local Taxpayer Assistance Centers 

With layoffs and resignations across the country, local taxpayer assistance centers may also suffer. Taxpayer assistance centers help low-income taxpayers file tax returns at little to no cost. Having in-person support can be helpful to organize your tax documents and ensure you are filing accurate returns. With a dwindling staff count, expect longer wait times at these facilities.  

Securing your spot may take some planning ahead. If you do plan on using one of these centers for your filing this year, call and reserve your spot to avoid any unnecessary delays. You don’t want to be scrambling to file your taxes at the last minute.  

The good news is that there are proactive steps you can take this filing season to lower the impact of DOGE IRS firings on your filing. Here are three strategies to keep in mind:  

1. Pay Close Attention to Return Accuracy  

The first proactive step you can take this filing season is to pay close attention to the accuracy of your return. Amending a return can significantly delay your refund and processing time. E-filing your return correctly the first time gives you access to refunds sooner and avoids a lengthy process going back and forth with the IRS. Here are a few tips to ensure return accuracy:  

1. Double Check Documents – Make sure you have all of your documents before you send them to your tax preparer or file your return yourself. Looking at your return from last year is a great starting point.  

1. Use Online Software – Paper filing can lead to missed forms and incorrect calculations. Online software is highly accurate, helping you avoid receiving letters from the IRS.  

1. Double Check Dependents and Filing Status – Your filing status can change between years, especially if you have dependents. Verify that your dependents qualify under current legislation to maximize your return accuracy.  

These three tasks are often overlooked when filing your tax return. However, by verifying accuracy, you are setting yourself up for success and can potentially avoid delays in processing time and receive your refund quicker.  

2. Partner With a Tax Expert 

If you aren’t already working with a tax expert, this year might be the perfect time to partner with a qualified accountant. For one, tax experts have access to priority phone lines. Instead of waiting hours on hold, a tax expert can connect directly with IRS agents to resolve your questions and issues quickly.  

Additionally, tax experts understand the intricacies of the tax code, helping you file accurate and compliant returns. Maybe they find a credit you qualify for or uncover a new deduction you’re eligible for. With less support from IRS agents, you might not be able to forgo the expert insight of a tax accountant.  

3. File Right Away 

The IRS gives you the option to extend your return for six months, making the extended filing deadline October 15, 2025. However, agents who took advantage of the deferred registration program are set to leave mid-May. This means that there will be fewer agents available from the original deadline to the extended due date. Filing right away gives you the best chance of a quick refund and a faster processing time. Additionally, if the government does shut down, most return processing and refunds will be halted. If you are expecting a refund, file as soon as possible.  

Remember, e-filing your return is also a great way to file quickly. Instead of waiting weeks for the IRS to receive and process your paper return, you can know if your return is accepted within a few hours. Similarly, any refund should be set up for direct deposit. You don’t want to be waiting on the IRS to cut you a check.  

Recent DOGE IRS firings can impact your tax filing this year. Longer support wait times, delayed refunds, extended processing times, favored filing methods, and fewer taxpayer assistance centers could all be in the pipeline. However, by paying close attention to the accuracy of your return, partnering with a tax expert, and filing right away, you can reduce the likelihood of IRS firings impacting your return.  

For more information about what to expect this filing season or to schedule your free consultation with one of our tax experts, reach out to one of our team members right away. We want to be your trusted tax expert during these uncertain times.