IRS employees rally against ‘slash-and-burn’ approach to layoffs — plus how it may impact your tax refund

As IRS employees in Kansas City rallied outside their workplace to protest layoffs that could delay tax refunds for millions of Americans, they argued that job cuts could disrupt operations at a critical point in the filing season.

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Don’t miss Concerns over refund delays Preparing for possible delays What to read next

Members of Chapter 66 of the National Treasury Employees Union (NTEU) gathered at the IRS processing center on April 15, Tax Day, admitting the strain of filling the workforce gaps of those laid off.

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“We’re working seven days a week in this building to process returns so American people can get their refunds. It’s going to impact that because we’re hearing that any day now, they’re going to start reducing more people forcefully from the building,” said Chapter 66 NTEU Chapter President Shannon Ellis to Fox 4.

The heavier workload that current IRS employees are experiencing is a direct result of the Trump administration’s government efficiency initiative, which involves mass layoffs.

Those layoffs will trickle down to Americans at the most inopportune time: tax season.

Concerns over refund delays

In the aftermath of recent layoffs, the IRS has experienced a 25% reduction in its workforce.

As of April 11, the agency had processed 116.3 million returns, down 1.5% from 118.1 million processed by the same time last year, according to IRS data.

While processing volumes remain relatively steady, union leaders warn that continued layoffs could worsen backlogs and delay refunds, especially when many Americans are increasingly reliant on those payments. Nearly half of taxpayers (49%) say they depend more on their tax refund to make ends meet in 2025, according to a Credit Karma survey

Among those receiving refunds, 41% plan to use the money for necessities, 35% to pay down debt, and 25% to build their savings.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Preparing for possible delays

Financial experts recommend that taxpayers prepare for potential refund delays by following a few easy steps:

Develop a debt payoff plan: Review all outstanding debts and prioritize essential payments for housing, utilities and minimum credit card payments. As motivation to reduce debt, you can use strategies like the snowball (smallest balance first) or avalanche (highest interest rate first) method.
Start an emergency fund: Aim to set aside a small portion of each paycheck into a separate savings account. Even if it’s as small as $10–$25, these contributions can build a crucial financial cushion to cover unexpected expenses if your refund is delayed.
Track spending to identify savings opportunities: Monitor daily and monthly expenses to understand where your money goes. Look for nonessential costs, such as subscriptions, dining out or impulse buys that can be reduced or eliminated.

In the meantime, taxpayers can use Where’s My Refund?, a tool to determine the status of their refund.

Union officials said Monday’s rally was intended to advocate for employees and raise public awareness about the potential impacts of the cuts.

“So what we’re trying to do is show up and just remind the American people and the people in Washington that we are real people and there’s a proper way to reduce the size of government, and it’s not being used,” said Daniel Scharpenburg, NTEU Chapter 66 first vice president. “What’s being used is a slash-and-burn method that is not good for anyone.”