IRS refunds in Ohio 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 Ohio 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.
What will an IRS hiring freeze look like?
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.
What will this mean for residents of Ohio?
For Ohio residents 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.
While the situation may seem dire, there are steps Ohio 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.
A little over 13.4% of Ohio’s population lived below the poverty line in 2023 and 212,000 Ohio residents are unemployed. These residents will suffer the most from the order’s directives.
The content of Trump’s executive orders raises serious questions for many Ohio taxpayers about equitable access to government services.
Ohio citizens 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 February 5, 2025 at 4:44 PM