Avoid refund delays! Discover the IRS's first massive change in 38 years.
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Tax season is upon us, and with it comes the annual ritual of gathering documents, crunching numbers, and hoping for a timely refund.
But this year, taxpayers are bracing for potential delays as the Internal Revenue Service (IRS) undergoes its most significant transformation in nearly four decades.
Here at The GrayVine, we understand that staying informed is key to navigating these changes smoothly, so let's dive into what's happening and how it might affect you.
The IRS is facing a period of transition at the top, with Acting IRS Commissioner Douglas O'Donnell stepping down after a commendable 38-year tenure with the agency.
O'Donnell, who has held several high-level positions, including deputy commissioner, was appointed to the role just last month.
His departure follows the resignation of Danny Werfel, who was selected by the previous administration but left office as the new administration took over.
O'Donnell's last day was reportedly February 28, according to sources who spoke with the Wall Street Journal. This change in leadership comes at a particularly sensitive time, as millions of Americans are in the midst of filing their taxes.
The IRS's current Chief Operating Officer, Melanie Krause, is expected to take over as acting commissioner.
Krause is set to lead the agency through the April 15 tax filing deadline, despite former
President Trump's nomination of former Republican House member Billy Long for the commissioner role. Long awaits his Senate confirmation hearing and cannot assume the position until then.
The new administration seeks to reverse an $80 billion expansion plan for the IRS, which was granted in 2022 to enhance service, enforcement, and technological advancements.
This comes alongside Elon Musk's Department of Government Efficiency (DOGE) initiatives, which are likely to influence the IRS's operations during this period of adjustment.
Source: CBS News / Youtube.
Earlier this month, the IRS let go of over 6,000 staff members as part of broader federal government job reductions.
Financial expert Armine Alajian warns that these layoffs could lead to delays in processing refunds. With fewer hands on deck, the IRS's ability to allocate resources effectively during tax season is compromised, potentially causing significant backlogs.
Despite these challenges, the IRS provides tools to help taxpayers track their refunds. By visiting IRS.gov and using the “Where's My Refund?” feature, you can check your refund status by providing your Social Security or individual taxpayer ID number (ITIN), filing status, and the exact refund amount on your return.
The tool will indicate whether your return has been received, your refund approved, or if your refund has been sent.
Source: NBC News / Youtube.
To minimize the risk of delays, it's recommended that taxpayers file electronically and as early as possible.
Opting for direct deposit and ensuring all tax forms are accurate can also expedite the process. Already, data from the IRS shows that at least eight million Americans have received their refunds, suggesting that acting swiftly can pay off.
Also read: Filing frustrations? Here’s 4 reasons why your tax refund might be delayed–and what you can do about it!
Have you already filed your taxes, or are you encountering any hurdles due to the IRS changes? Share your experiences and tips for a smooth tax season in the comments below!
But this year, taxpayers are bracing for potential delays as the Internal Revenue Service (IRS) undergoes its most significant transformation in nearly four decades.
Here at The GrayVine, we understand that staying informed is key to navigating these changes smoothly, so let's dive into what's happening and how it might affect you.
The IRS is facing a period of transition at the top, with Acting IRS Commissioner Douglas O'Donnell stepping down after a commendable 38-year tenure with the agency.
O'Donnell, who has held several high-level positions, including deputy commissioner, was appointed to the role just last month.
His departure follows the resignation of Danny Werfel, who was selected by the previous administration but left office as the new administration took over.
Acting IRS Commissioner Douglas O'Donnell is set to retire after a short tenure and 38 years of service. Image source: WTKR News 3 / Youtube.
O'Donnell's last day was reportedly February 28, according to sources who spoke with the Wall Street Journal. This change in leadership comes at a particularly sensitive time, as millions of Americans are in the midst of filing their taxes.
The IRS's current Chief Operating Officer, Melanie Krause, is expected to take over as acting commissioner.
Krause is set to lead the agency through the April 15 tax filing deadline, despite former
President Trump's nomination of former Republican House member Billy Long for the commissioner role. Long awaits his Senate confirmation hearing and cannot assume the position until then.
The new administration seeks to reverse an $80 billion expansion plan for the IRS, which was granted in 2022 to enhance service, enforcement, and technological advancements.
This comes alongside Elon Musk's Department of Government Efficiency (DOGE) initiatives, which are likely to influence the IRS's operations during this period of adjustment.
Source: CBS News / Youtube.
Earlier this month, the IRS let go of over 6,000 staff members as part of broader federal government job reductions.
Financial expert Armine Alajian warns that these layoffs could lead to delays in processing refunds. With fewer hands on deck, the IRS's ability to allocate resources effectively during tax season is compromised, potentially causing significant backlogs.
Despite these challenges, the IRS provides tools to help taxpayers track their refunds. By visiting IRS.gov and using the “Where's My Refund?” feature, you can check your refund status by providing your Social Security or individual taxpayer ID number (ITIN), filing status, and the exact refund amount on your return.
The tool will indicate whether your return has been received, your refund approved, or if your refund has been sent.
Source: NBC News / Youtube.
To minimize the risk of delays, it's recommended that taxpayers file electronically and as early as possible.
Opting for direct deposit and ensuring all tax forms are accurate can also expedite the process. Already, data from the IRS shows that at least eight million Americans have received their refunds, suggesting that acting swiftly can pay off.
Also read: Filing frustrations? Here’s 4 reasons why your tax refund might be delayed–and what you can do about it!
Have you already filed your taxes, or are you encountering any hurdles due to the IRS changes? Share your experiences and tips for a smooth tax season in the comments below!
