Concerns over refund delays
In the aftermath of recent layoffs, the IRS has experienced a 25% reduction in its workforce.
As of April 11, the agency had processed 116.3 million returns, down 1.5% from 118.1 million processed by the same time last year, according to IRS data.
While processing volumes remain relatively steady, union leaders warn that continued layoffs could worsen backlogs and delay refunds, especially when many Americans are increasingly reliant on those payments. Nearly half of taxpayers (49%) say they depend more on their tax refund to make ends meet in 2025, according to a Credit Karma survey
Among those receiving refunds, 41% plan to use the money for necessities, 35% to pay down debt, and 25% to build their savings.
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Make Money NowPreparing for possible delays
Financial experts recommend that taxpayers prepare for potential refund delays by following a few easy steps:
- Develop a debt payoff plan: Review all outstanding debts and prioritize essential payments for housing, utilities and minimum credit card payments. As motivation to reduce debt, you can use strategies like the snowball (smallest balance first) or avalanche (highest interest rate first) method.
- Start an emergency fund: Aim to set aside a small portion of each paycheck into a separate savings account. Even if it’s as small as $10–$25, these contributions can build a crucial financial cushion to cover unexpected expenses if your refund is delayed.
- Track spending to identify savings opportunities: Monitor daily and monthly expenses to understand where your money goes. Look for nonessential costs, such as subscriptions, dining out or impulse buys that can be reduced or eliminated.
In the meantime, taxpayers can use Where’s My Refund?, a tool to determine the status of their refund.
Union officials said Monday’s rally was intended to advocate for employees and raise public awareness about the potential impacts of the cuts.
“So what we’re trying to do is show up and just remind the American people and the people in Washington that we are real people and there’s a proper way to reduce the size of government, and it’s not being used,” said Daniel Scharpenburg, NTEU Chapter 66 first vice president. “What’s being used is a slash-and-burn method that is not good for anyone.”
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