"Average tax refunds this year are set to be nearly $750 higher than last year - but they might take a while getting to you, with a smaller IRS dedicated to getting them out. The passage of President Donald Trump's " One Big Beautiful Bill" introduced new sweeping tax measures - which include no tax on overtime or tips and an expanded child tax credit - that will show up in many taxpayers' refunds."
"There's just one problem: A much smaller IRS will be grinding away to get those checks to filers. The IRS's workforce shrank by 27% from January 2025 to December 2025, going from over 102,000 workers to around 74,000, according to National Taxpayer Advocate Erin Collins' annual report. Per that report, 22% of the agency's customer representatives left. "The impact of these departures is not merely numeric," Collins' report said. "Many departing employees were experienced workers whose institutional knowledge and technical expertise cannot easily be replaced.""
Average tax refunds this year are projected to rise by about $750 to roughly $3,800, driven by recent tax changes that include no tax on overtime or tips and an expanded child tax credit. Employers have not been instructed to adjust withholding, so taxpayers will see the changes in refunds rather than paychecks. The IRS workforce declined about 27% in 2025, falling from over 102,000 to around 74,000, with 22% of customer representatives leaving. Departures included experienced staff whose institutional knowledge and technical expertise are difficult to replace. Staffing reductions may cause delays, worsen customer service, and increase the risk of errors. The IRS head stated the agency is equipped to handle the filing season.
Read at Business Insider
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