Trump's Federal Layoffs Threaten IRS Tax Compliance

Tax specialist Orly Mazur states the amount of tax cheating will increase. CPA Richard Pon confirms processing centers will be understaffed, causing paper returns to take double, triple, or quadruple the normal six to eight weeks, and refund checks will also experience delays.

Customer service lines will have longer wait times, and in-person service centers will likely close. Processing of correspondence and amended returns, already four to six months, will double.

Former IRS Commissioner Charles Rettig notes these cuts reduce work for military personnel and their spouses, who comprise almost 10% of IRS employees. The IRS, already understaffed according to the National Taxpayer Advocate, still utilizes software tools and social media monitoring to detect tax evasion, as reported by Investopedia.

The legality of these layoffs and buyouts remains unclear and will be a topic of contention.