IRS refunds in Georgia could be delayed due to Trump hiring freeze. What to know
President Donald Trump’s recent executive orders have raised concerns about potential delays in tax refunds for Georgia residents.
The president’s actions, which include a hiring freeze at the Internal Revenue Service (IRS) and a mandate for federal employees to return to in-person work, could significantly impact the agency’s ability to process returns efficiently.
House Republicans proposed reducing the IRS budget to $10.1 billion for Fiscal Year 2025, which is $2.2 billion less than the current funding level.
How will an IRS hiring freeze look?
This IRS hiring freeze has no expiration date and is left to the complete discretion of newly confirmed Treasury Secretary Scott Bessent.
There will be broad and far-reaching consequences for the Internal Revenue Service:
Job offer rescissions
Staffing shortages
Reduced customer service capabilities
Reallocation of resources
What can Americans expect as a result of this order?
The compounding consequences may likely lead to a wave of early retirements among IRS staff, further slowing down the refund process.
Vacant federal civilian positions cannot be filled except for positions in:
- Military personnel and defense civilian roles
- Immigration enforcement positions
- National security and public safety roles
- Seasonal workers and USPS employees
Social Security, Medicare and VA benefits distribution are protected in theory, but support staff hiring freezes could create backlogs
May cause multi-year backlogs at agencies like State Department, as it did in 2017
Operational challenges in benefit processing agencies and non-exempt departments are expected.
Nina Olson, executive director of the Center for Taxpayer Rights, suggests that older employees should opt for early retirement to avoid the negative fallout and make sure they can access their benefits.
With the IRS short-staffed some audits of wealthy individuals and corporations are at risk of being closed prematurely due to lack of personnel. This poses further threats to the IRS’ campaign to address high-end tax-dodging.
Americans can expect major office closures. Newsweek published a list of the 10 IRS sites that are slated to close, including public-facing service centers. This could slow down the tax refund process across the country. Despite the recent announcement to shutter five Social Security offices in Georgia, the IRS centers appear to be safe for now.
What will this mean for residents of Georgia?
For Georgians counting on timely tax refunds, these developments are cause for concern.
Kiplinger reminds Americans that the IRS has already warned that its level of service could drop dramatically in the coming years, potentially reducing the chances of in-person or by-phone customer service by almost a third.
It could also create longer processing times and refunds could be late.
While the situation may seem dire, there are steps Georgia residents can take to mitigate potential delays:
File early and accurately to increase the chances of receiving refunds before potential backlogs develop.
Adjust withholding allowances to avoid overpaying taxes throughout the year.
Consider increasing retirement contributions to lower taxable income and reduce reliance on refunds.
These executive orders and the programs they eliminate will disproportionately affect working-class residents and lower-income families, according to Forbes Magazines.
A little over 13% of Georgia’s population lived below the poverty line in 2023 and one million Georgians qualify as working class. These residents will suffer the most from the order’s directives.
The content of Trump’s executive orders raises serious questions for many Georgia taxpayers about equitable access to government services.
Georgians can stay informed about these developments and consider contacting their representatives to voice concerns about the potential impact on tax administration and refund processing.
The potential cuts to IRS volunteer programs could leave vulnerable populations without essential support during tax season.
Are you concerned? Email me at srose@ledger-enquirer.com or find me on Instagram.
This story was originally published March 4, 2025 at 5:43 PM with the headline "IRS refunds in Georgia could be delayed due to Trump hiring freeze. What to know."
