Will my tax refund be delayed in California by Trump hiring freeze, firings? Experts weigh in
President Donald Trump issued a number of executive orders on his first day in office, including a federal government hiring freeze that took effect one week before the start of tax season.
In mid-February, the Trump administration ordered federal agencies to begin large-scale firings, according to Government Executive, a publication that tracks U.S. government news.
The orders affected agencies including the Internal Revenue Service, which is in the throes of its busiest season. The IRS began accepting tax returns in late January.
At least 6,700 probationary employees who were just starting at the IRS or had taken new positions at the agency lost their jobs, said certified personal accountant Larry Pon of Pon & Associates in Redwood City.
“Some (employees) were brand new,” Pon said, while other, more seasoned workers had transferred from different departments.
A Northern California district court judge ruled Thursday that the Trump administration’s mass terminations of probationary employees were illegal.
How will federal or state tax refunds be impacted by staffing cuts? The Sacramento Bee reached out to Pon and tax agencies to learn more.
What does IRS hiring freeze mean for California taxpayers?
Taxpayers need to pay especially close attention when filing taxes this year, Pon said.
With fewer employees available to fix minor errors on returns or answer questions over the phone, Pon said being diligent when checking tax forms before submitting is vital for avoiding potential delays.
“Before you hit the ‘send’ button on your electronic file tax return, double check everything,” he said. “Make sure you got all your ducks in a row because you don’t want to get a rejection and you don’t want to get forced to paper file (an amended) tax return.”
The IRS shared online tools for filing tax returns and monitoring the status of your return without having to wait for a person to pick up the phone:
- File your return electronically and request your refund be direct deposited into your bank account.
- Sign in to your Individual Online Account with your to access your federal tax information.
- Check your refund status online with the Where’s My Refund? online tool.
- Use the Interactive Tax Assistant tool on the IRS website for answers to your tax questions.
- Use checklists on the IRS website to avoid common tax filing errors.
- Check your eligibility for the Earned Income Tax Credit online.
- Estimate your tax withholding with the IRS Tax Withholding Estimator tool.
Will my federal tax refund be delayed due to staffing cuts?
Some federal tax refunds could be delayed, according to Pon.
Those delays will mainly involve tax returns that are processed manually, such as paper filed returns, complicated forms and returns from prior years, he said.
According to the IRS website, tax refunds are issued within 21 days of receiving an electronically filed tax return.
As of Friday, the IRS was processing paper returns from February, according to the agency’s website.
Pon said he tells his clients to file as early as they can and electronically if possible to minimize the chances their return will need to be processed manually by an employee.
The IRS has some tips that can reduce processing time and help reduce potential delays in receiving your tax refund:
Collect all tax-related paperwork, such as W-2 and 1099 forms if applicable
Use electronic filing services, including IRS Free File or Direct File in California
Ensure your filing status is correct
Make sure the names, birthdates and Social Security numbers of your household members are correct
Answer the digital assets question on your tax return
Report all taxable income
Make sure your banking routing and account numbers are correct
Remember to sign and date the return
Ensure address is correct if mailing paper returns
Keep a copy of the tax return
Request an extension, if needed
Could my state tax refund be impacted by government firings?
Tax processing by the California Franchise Tax Board has not been affected so far by the federal government hiring freeze or firings, according to Daniel Tahara, a representative for the state tax board.
Tahara told The Bee in an email that the state Franchise Tax Board has “been operating normally while processing state tax returns and issuing refunds.”
The California tax board had issued 1.7 million personal tax refunds during the 2024 tax season, with California taxpayers receiving an average of $1,246 in refunds, Tahara said.
When are tax returns due?
In California, federal and state tax returns are due on Tuesday, April 15.
Can I get an extension on tax filing deadline?
You can request a six-month extension if you need more time filling out your return, but any payments due to the government must be made by the April deadline.
If you were impacted by Los Angeles County wildfires in January, including the Palisades and Eaton fires, you may be able to get an extension on filing your tax return and making payments until Oct. 15, according to the IRS.
This story was originally published March 4, 2025 at 5:00 AM with the headline "Will my tax refund be delayed in California by Trump hiring freeze, firings? Experts weigh in."
