Tax season may feel far off, but now is the time to start planning ahead, especially with recent news from the IRS. Budget reductions and staff cuts are expected to impact taxpayer services in the upcoming 2025 filing season, and the ripple effects could cause major headaches for those who wait too long to prepare.
The IRS has been facing reductions in workforce and funding, specifically, funding that was intended to improve taxpayer support and modernize outdated systems. As a result, taxpayers should brace for slower response times, longer refund delays, and sluggish resolution of disputes.
If you’re expecting a refund for your 2025 tax return or anticipate needing help resolving tax issues early next year, it’s more important than ever to file as early as possible. Taxpayers who typically rely on IRS phone support or mailed correspondence for help should prepare for long wait times or delays in processing.
Here’s what you can do now to stay ahead:
- Gather income and expense records as they become available
- Schedule a tax planning check-in before the end of the year
- Consider e-filing and direct deposit to avoid paper processing delays
- Resolve any existing IRS correspondence before the holiday season
Whether you’re a small business owner, a retiree, or a busy family juggling multiple incomes, planning ahead this fall could help you avoid unnecessary stress in early 2026.