Trump may hand out fatter tax refunds this year, but whether a short-staffed IRS can get it to you is a different matter, watchdog warns

5 days ago 2

A fiscal centerpiece of President Donald Trump’s agenda so far has been his pledge to lower taxes, and Americans are close to seeing healthy refunds from their 2026 filings. But actually seeing those returns show up on time might not be so straightforward, according to a recent federal watchdog report, largely owing to another of Trump’s signature policy stances.

The Trump administration’s purge of the federal bureaucracy last year did not spare the Internal Revenue Service, the agency responsible for collecting taxes and processing returns. By last July, around 25,000 employees had left the agency through layoffs or deferred resignations, around 25% of the agency’s workforce. More were let go last fall during the government shutdown. The administration has framed trimming the agency’s headcount as a move toward modernity and higher efficiency. But at least in the short term, the skeleton crew manning the IRS might struggle to deliver on Trump’s windfall promises.

The IRS now employs about as many people as it did in 2021, and owing to last year’s prolonged shutdown, the agency was unable to hire and train employees to assist during filing season, according to a Treasury Department watchdog Read Entire Article