Mass IRS Layoffs — How It Affects Your Tax Refund & Audits! (Uncut) 03-03-2025
Mass IRS Layoffs — How It Affects Your Tax Refund & Audits!
in today’s video we’re covering the IRS and tax filing season we’re going to be breaking down president Trump’s Mass firing and layoffs at the IRS so in today’s video Let’s cover what’s going on will this delay your tax refund and what are your chances of getting audited so let’s begin with this currently the IRS has about 100,000 employees when President Biden took office it was close to 880,000 in four years the IRS headcount has shot up so in August of 2022 Congress passed the inflation reduction act and it was signed into law
by President Biden it was intended to reduce inflation by spending $750 billion on Health Care climate change and money for the IRS so Biden said and I quote with this law the American people won now within the inflation reduction act the IRS was given an additional $80 billion of our taxpayer money spread out over 10 years so even though it spread out over 10 years I mean that’s still a lot of money that’s an extra 8 billion a year and that is massive considering that the IRS budget in 2022 was $13
billion so it’s an annual increase of 62% and the big question was what will the IRS do with all this new money okay so here’s what was supposed to happen the IRS was supposed to use a majority of that money to go after wealthy tax cheats in 2026 in 2027 so you have to remember that this passed in August of 2022 they can’t just hire Auditors and then send them off on day one the IRS was ramping up and getting ready to do so but that just all got undone as you know president Trump is on a quest to downsize the government or
you can say rightsize anyways 6,000 IRS employees are going to be fired or terminated or laid off whatever you want to call it okay so those are the early estimated figures but now the expectation is closer to 6,700 employees but could be more of those 6,700 5,000 will be Auditors and the remainder includes from Departments of customer service tax disputes and it so the terminations they’re targeting new hires with less than one year of service so there’s about 15,000 IRS employees that have been on the job for less than one year
now here’s a very good question will the expected IRS staff Cuts delay my 202 five tax refunds so I want to answer this so that you understand the situation so the IRS has publicly said employees that are critical to the tax filing season are ineligible to be terminated so the former IRS commissioner Charles reig said and I quote there should not be a significant impact on current filing season operations So based on this the answer would be no your tax refund will not be delayed but I’m going to give you my
opinion on what I expect to happen so listen I don’t want to just leave it at that because that’s oversimplified so here’s my expectation so I just want you to think about this logically the IRS operations they’re computerized and automated but you still have employees intervening to fix problems and employees and employees are getting let go right so my expectation is that if you file a tax return that is error free you’re not going to notice a delay but if there’s a problem with your tax return then your tax refund could be
delayed longer than usual okay so what problems am I referring to so i’ would say the most common error is when people forget to report a tax form so that’s an example and if your tax return gets selected for review then your tax refund could be delayed longer than usual okay so why would you get selected for review honestly it could just be bad luck or if something looks abnormal on your tax turn so with that being said moving forward you’re going to see a wide range of comments on this video you’re going to see people saying that
they got their tax refund quickly as usual and you’re going to see other people complaining that they still haven’t gotten their tax refund money from years ago but essentially reduce Staffing May delay tax refunds if there’s an issue with your tax return but just so you know you can always check the status of your tax refund on the IRS website you just Google check IRS refund stat status and it should be the first one that pops up but of course make sure it says irs.gov you don’t want to give your information to like a scam
site anyways you just click on that and it’s going to take you to here and then you just click on that check your refund and then that’ll take you here and then you just answer their four security questions so it’s very straightforward and it’ll give you the status of your tax refund it’ll say your tax return has been received your tax refund has been approved and what dates you can expect your tax refund money and just so you know I mean a lot of people don’t know this you can also check the status of
your state income tax refund on your State’s website it’s a similar process it’s also very easy now I want to show you this the IRS is laying off mostly those new Auditors right so you are looking at your chances of getting audited right now so I want you to take a look at this for example let’s say that you make $50,000 to $199,000 $999 your chances of getting audited are 0.1% so listen if it’s 1% that means a one out of a 100 chance so 0.1% means like one out of a million I’m just kidding it means one
out of a thousand so if you get audited you either have a very suspicious looking tax return that spike your odds of getting audited or you just really have bad luck okay so you remember this a majority of the extra money that the IRS received was supposed to be used to hire new Auditors to go after the wealthy tax cheats right well those Auditors are getting laid off okay so you see this if you make $10 million or more you have a 2.4% chance of getting audited in 2014 this was at 99.4% the goal was to get the current
figures back up there so more of these high income earners getting audited but with these new aors getting fired it looks like the rich dodged another bullets the former IRS commissioner Charles reck said these layoffs will have a significant impact on the irs’s ability to expand the volume of audits okay now I want to point this out to you if you make less than $25,000 a year then you have the same odds of getting audited as a person making just under $5 million a year this is because of the earned income tax credits
it’s you know I’ll tell you what it is if the IRS would just modernize their software this would not happen the IRS says that they’re in the process of modernizing their systems but they’ve been saying this for years so hopefully soon they’re going to finish that and this nonsense will stop and if you do receive the earn income tax credit your chances of getting audited are actually higher than someone that makes $9.9 million a year so people that claim to Earned Income Tax Credit have less than
$67,000 of income per year so so talk about a misallocation of resources so that’s your IRS update I’m telling you for most people this is nothing to be concerned about I wouldn’t stress out about this but I mean I’m not going to sh I’m not going to lie for the situations where there there is a problem yeah this could delay it and this could turn into a bad situation do what you can to just make it error free you know on your end but then again there are going to be some people that just have really bad luck
they can’t do anything about it and they just get picked for a view and the process just gets dragged out longer due to a shortage of Staff hopefully that doesn’t happen to you please subscribe I thank you for the support and wish you a very nice day take care
