IRS Staffing Cuts Are Slowing Refunds—Here’s What Taxpayers Need to Know

If you’re waiting on a tax refund—especially from an amended return—you may be in for a longer wait.

A recent government watchdog report shows that staffing shortages at the IRS have led to a backlog of nearly 590,000 amended tax returns, raising concerns about delayed refunds for hundreds of thousands of Americans.

What’s causing the backlog?

The IRS workforce has been reduced by about 27 percent, according to the latest figures. These cuts followed layoffs carried out by the Department of Government Efficiency (DOGE), which was overseen by Elon Musk during the early days of the Trump administration.

With fewer employees available to process returns and answer questions, the agency is struggling to keep up with the volume of work—especially paper filings and amended returns, which require manual review.

 

Who is most affected?

Taxpayers who file amended tax returns face the biggest risk of delays. Amended returns are typically filed when someone needs to correct mistakes related to income, deductions, dependents, tax credits, or refund amounts.

According to an analysis of the Treasury report, these returns are piling up faster than the IRS can process them.

To put the problem in perspective:

• The current backlog is about 20,000 higher than last year
• It’s roughly four times larger than it was in 2019, before the pandemic

Customer service is also taking a hit

The IRS is also answering fewer phone calls. The watchdog report found that the agency lowered its customer service goal from 85 percent of calls answered to just 70 percent—meaning roughly 3 out of every 10 calls may go unanswered.

For taxpayers trying to check on a delayed refund, that can add another layer of frustration.

Delays are costing the IRS billions

Ironically, slower processing doesn’t just hurt taxpayers—it also costs the government money.

By law, the IRS must pay interest on refunds issued more than 45 days after the filing deadline. In 2025 alone, those interest payments totaled more than $2.6 billion, according to the Treasury report.

The interest rate the IRS pays on late refunds is 7 percent for the first three months of 2026, meaning longer delays could drive that cost even higher.

 

The bottom line

With fewer workers and growing backlogs, the IRS is under pressure—and taxpayers may feel the effects through delayed refunds and reduced customer service.

If you’re filing an amended return this year, experts suggest:

• Filing as early as possible
• Keeping copies of all documents
• Using online IRS tools to track your return when available

While staffing challenges continue, patience may be required—but the financial and service impacts are already adding up for both taxpayers and the government.