IRS Warns of Refund Strain as Trump Promises Bigger Checks
IRS says e-file refunds typically arrive within 21 days as the agency shrank to about 74,000 employees ahead of the April 15, 2026 filing deadline.
Overview
The Internal Revenue Service began accepting federal returns on Jan. 26 and said taxpayers who file electronically without errors and choose direct deposit should receive refunds within 21 days, the agency said.
Records show the IRS started 2025 with about 102,000 employees and finished with roughly 74,000 after firings and layoffs led by the Department of Government Efficiency, prompting the national taxpayer advocate to caution about processing challenges for 2026.
President Donald Trump said in a Cabinet meeting on Jan. 29 that "record-setting" tax refunds are coming and that the average refund would be about $1,000 higher, a projection that IRS officials did not endorse.
The IRS expects about 164 million individual returns by the April 15, 2026 deadline, and records show 94% of returns were submitted electronically last year when the average refund was $3,167.
The IRS said its "Where's My Refund?" tool updates once daily and will provide projected deposit dates for most early EITC and ACTC filers by Feb. 21, and it cautioned taxpayers not to rely on a specific refund date.
Analysis
Center-leaning sources present this as a pragmatic, service-impact story: they emphasize staffing declines (using 'exodus' and noting a drop from ~102,000 to 74,000) and highlight the national taxpayer advocate's caution, while keeping refund instructions factual. Editorial choices (wording and placement of staffing details) create mild concern about IRS capacity; quotes remain source content.
Sources (3)
FAQ
The IRS states that taxpayers who file electronically without errors and choose direct deposit should receive refunds within 21 days.
The IRS shrank from about 102,000 to 74,000 employees due to firings and layoffs by the Department of Government Efficiency, prompting warnings from the national taxpayer advocate about processing challenges for 2026.
President Trump stated in a Cabinet meeting on Jan. 29 that 'record-setting' tax refunds are coming, with the average refund about $1,000 higher, though IRS officials did not endorse this projection.
Most refunds for the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) will be available by March 2, 2026, for direct deposit filers with no issues, with projected dates on Where's My Refund? by Feb. 21.
The IRS is phasing out paper checks per Executive Order 14247, requiring direct deposit info; invalid or missing info leads to a frozen refund and a CP53E notice for correction.
History
This story does not have any previous versions.