Quick answer: DOGE-driven IRS staff cuts reduced the agency workforce by roughly 26,000 employees (from ~102,000 to ~76,000) between 2025 and early 2026 — about a 25% reduction. The result: e-filed refunds that used to take 21 days now take 3–5 weeks; paper returns are running 8–12+ weeks. A further 4,000-employee reduction is planned for FY2027.
Last updated: May 30, 2026 · 8:00 a.m. ET
IRS Staffing: Before and After
| Metric | Before Cuts (peak) | After Cuts (2026) |
|---|---|---|
| Total IRS workforce | ~102,113 | ~75,702 |
| Employees lost | — | ~26,000 |
| Key function reduction | — | 17%–19% (TIGTA) |
| E-file refund timeline | ~21 days | 3–5 weeks |
| Paper return timeline | ~6–8 weeks | 8–12+ weeks |
| Planned FY2027 cuts | — | ~4,000 more |
Sources: National Taxpayer Advocate, TIGTA (Treasury Inspector General), Government Executive (Apr 2026), Budget Lab at Yale.
What the Cuts Mean for Tax Filers
Refund delays are real and documented. CNBC, Kiplinger, PBS NewsHour, and CPA Practice Advisor all confirmed slower processing in early 2026. The IRS processed measurably fewer returns versus the same period in 2025.
Customer service is thinner. The biggest staffing cuts fell on taxpayer services, small business/self-employed operations, and IT. IRS Commissioner Frank Bisignano told Congress the 2026 filing season “proceeded smoothly” — Democratic senators disputed this, citing worsening service metrics.
Tax enforcement capacity dropped. Yale Budget Lab estimates DOGE-related layoffs likely reduced tax revenue collection by ~$598 billion over 2026–2035. The $20B IRA funding clawback adds another ~$263B in projected lost revenue over the same period.
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Where to Check Your Refund Status
- IRS “Where’s My Refund?” tool: irs.gov/refunds
- IRS2Go app: Available on iOS and Android
- Refund status updates once per day (usually overnight). Call hold times are significantly longer than in prior years.
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FAQ
How many IRS employees were laid off?
Approximately 26,000 left between 2025 and early 2026, mostly through DOGE voluntary separation incentives. The workforce dropped from ~102,000 to ~76,000.
Why is my 2025 tax refund delayed?
DOGE-driven IRS staff reductions (~30% in processing and service roles) are the primary documented cause. New deduction categories (tips, overtime) under OBBBA also triggered more manual review flags.
Will the IRS cut more staff?
Yes. The IRS’s FY2027 budget submission requests a $1.4 billion funding reduction and targets shedding approximately 4,000 more net employees.
Sources
- National Taxpayer Advocate Report: taxpayeradvocate.irs.gov
- TIGTA Report — Key Filing Season Functions: treasury.gov/tigta
- Government Executive, Apr 14, 2026: IRS nears finish line, upheaval article
- Budget Lab at Yale — IRS Revenue Impact: budgetlab.yale.edu
Not financial or tax advice. Written by Aybars Y. · EskiSignal Editorial · May 30, 2026
