File early, file early! We’ve all heard tax accountants say this during tax season, but this year, there may be new urgency to avoid delays in refunds or getting help, some say.

The IRS is facing a double whammy of a hiring freeze and the potential to lose thousands of workers in the next couple of weeks as part of President Donald Trump’s aggressive attempt to downsize the federal government. Drastic cost cutting measures have already touched a wide range of agencies including the Consumer Financial Protection Bureau, Department of Health and Human Services and Department of Education.

An IRS labor shortage in the middle of tax season could be devastating for taxpayers who want fast refund checks or need assistance, some accountants said. The IRS already is understaffed and has difficulty hiring and retaining employees, according to the National Taxpayer Advocate (NTA), an independent organization within the IRS.

 "It is nearly inevitable that this hiring freeze, compounded by layoffs and further reductions in staff mandated as a result of Elon Musk’s unprecedented power grab, will delay refunds and degrade taxpayer service," Senate Finance Committee Ranking Member Ron Wyden (D-Oregon), Senate Democratic Leader Chuck Schumer (D-New York), and seven Democratic committee members said in a letter to the Trump administration on Tuesday. "Millions of Americans plan their budgets around timely refunds every filing season. These reckless decisions on the part of Elon Musk and the Trump administration will likely cause serious financial hardship for people across the country.”

What might taxpayers expect if IRS workers are slashed?

Mass firings “definitely will impact tax season as cuts would have immediate impact,” said certified public accountant Richard Pon in San Francisco.

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A worker shortage, he said, may mean:

• Processing centers will be understaffed. This especially affects processing of paper returns, which normally take 6-8 weeks. “You can see this double, triple or quadruple,” he warned. Processing paper refund checks will also take longer than the normal 3-4 weeks, he said.
• Customer service lines will have longer wait times. “After four years in her role, the National Taxpayer Advocate cannot believe she is still discussing phone service as one of the most serious problems impacting taxpayers,” said the NTA’s 2024 Annual Report to Congress. With layoffs, expect that to get worse, Pon said.
• The few in-person service centers may close. “Normally they also have a Saturday service center open in March or early April, but that will probably be eliminated,” Pon said.
• Processing of correspondence and amended returns which already takes 4-6 months may double as these teams may have to shift to other duties.  The IRS has said they will “reallocate workers from other areas to help cover filing season processing” to meet the needs of this filing season.
• Less work for military personnel and their spouses, according to former IRS Commissioner Charles Rettig in a LinkedIn post. Almost 10% of current IRS employees, including “on probation” new hires, are military veterans, he said. Many IRS employees hired to work during filing season also are spouses of current military personnel.

Does a smaller IRS benefit anyone?

Possibly noncompliant taxpayers, Rettig said.

“IRS compliance activities are necessary to our system of voluntary self-assessment,” he said.  “An underfunded IRS significantly benefits unidentified, noncompliant taxpayers at the direct expense of compliant taxpayers.”

Examinations, or audits, especially complex ones, may fall. The IRS needs “specialized examiners and related resources to actually conduct examinations and determine deficiencies, as well as others to represent the IRS in administrative appeals and possibly litigation.” Rettig wrote. “All of these folks need constant training, and the more experience, the better for both the IRS and the taxpayer.”

What can taxpayers do if IRS is slashed?

• File early, for real. It’s more important this year for Americans to get a jump on their taxes, particularly if they’re sending in paper returns or requesting refunds by check, Pon said.

For those requesting refunds, opt for a direct deposit to get them faster, he said. E-filing plus claiming a refund by direct deposit can sometimes get you a refund as fast as eight days, he said.

• Call the IRS as early as possible. Some lines are staffed as early as 7 a.m. ET. “The later you call, the busier the line is and staffing may be less as the afternoon comes,” Pon said.
• For open audits or NTA claims, try to settle as soon as possible. IRS employees that took a buyout offer must work through May 15, but many IRS employees may leave as soon as April, he said.

The story was updated with new information.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.