With the tax filing deadline just three weeks away, concerns are mounting over potential delays in tax return processing and refunds as the Trump administration implements aggressive restructuring and significant staff cuts at the Internal Revenue Service (IRS).

This situation is causing confusion, with some businesses and individual taxpayers considering delaying their tax filings.

The Washington Post (WP) reported on the 22nd that Treasury Department and IRS officials expect federal tax revenue this spring to drop by more than 10% compared to 2024, following the April 15 tax filing deadline. Last year, the IRS collected a total of $5.1 trillion in federal revenue, meaning this year’s shortfall could exceed $500 billion.

This decline stems from sweeping layoffs and organizational streamlining at the IRS, part of a broader federal government restructuring led by the Department of Government Efficiency (DOGE) since the Trump administration took office.

According to the WP, DOGE is pushing to reduce the IRS workforce—originally numbering 90,000—by approximately 20,000 employees, with over 11,000 already laid off.

As a result, the WP noted an increasing number of individuals and businesses are either delaying their tax filings, skipping them altogether, or holding off on paying owed balances to see how the situation unfolds. Additionally, numerous tax audits targeting high-income businesses and individuals have reportedly been suspended due to the IRS’s drastic restructuring.

The WP highlighted that more taxpayers believe the tax authority, hampered by mass layoffs, won’t be able to scrutinize their accounts thoroughly.

However, both the IRS and Korean-American certified public accountants warn that intentionally delaying or skipping tax filings could lead to interest and penalties on unpaid taxes, as well as audits, and even criminal investigations or penalties.

While the IRS has not yet issued an official statement regarding potential delays in tax return processing or refund payments, it has repeatedly urged taxpayers to complete their filings by the April 15 deadline.

The filing period for 2024 income tax returns began on January 27, kicking off this year’s tax season.

The IRS expects more than 140 million individual tax returns to be filed during this tax season. Unless affected by natural disasters or other special circumstances, the filing deadline is Tuesday, April 15. Since this date does not fall on a weekend or holiday, returns must be submitted online by midnight or postmarked by a post office by that date.

Failure to file by April 15 could result in penalties of up to 25% of the unpaid tax amount per month. Taxpayers unable to file by the deadline can request an extension in advance. Extensions due to natural disasters or other requests push the filing deadline to October 15, though this does not extend the obligation to pay taxes owed.

According to the IRS, this year’s average tax refund is projected to be around $3,138, similar to previous years. For 2023 income returns, approximately 105 million taxpayers received refunds last year, the IRS reported.

The IRS emphasized that filing taxes online is the fastest way to receive refunds and avoid issues like mail mishaps. Taxpayers with an adjusted gross income (AGI) of $84,000 or less can use the IRS’s Direct File program, available in 25 states, including California.

In previous years, absent specific issues, the IRS typically issued refunds within 21 days of filing. For those filing online with direct deposit, refunds can arrive in as little as 10 days. Real-time refund status updates are available on the IRS website (www.irs.gov/refunds).