Do IRS cuts mean you can make mistakes on your taxes in 2025? Some taxpayers think so.

USA Today

27-03-2025

Do IRS cuts mean you can make mistakes on your taxes in 2025? Some taxpayers think so.
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Tax Day is coming up on April 15 — what to know about filing
Tax Day is coming up on April 15. Here are some tips for making the process as smooth as possible.
Some taxpayers say they are not particularly worried about making mistakes on their taxes this year, given the widely publicized cuts at the IRS and the broader impression of a federal workforce in disarray.
In an ordinary year, few taxpayers would contemplate reckless disregard for the data on a tax return. Make mistakes, and you risk an audit.
This year, however, a new president has brought tumult to the taxing agency. The Trump administration is slashing the IRS workforce as part of a broader effort to shrink the federal government.
In a March survey by Intuit Credit Karma, roughly one-quarter of taxpayers said they are less worried about errors on their returns this year because of the IRS cuts. Nearly half of those surveyed said they lack confidence in the agency's ability to enforce compliance with the tax laws. A few taxpayers said they were considering not filing taxes at all.
Among those citizens who have already filed tax returns and expect a refund, the survey found, nearly half worry the check will arrive late. The survey reached 1,003 Americans.
Have IRS firings left the agency short-staffed?
The extent of the IRS overhaul remains unclear. Reuters reports the agency plans to trim 20% to 25% of its 100,000-person workforce by mid-May. The total includes about 5,000 workers who have already taken buyouts, and roughly 7,000 probationary employees who were fired.
Court rulings reinstated the probationary workers, whereupon the IRS put them on paid leave, according to the Federal News Network.
The IRS also ordered many workers to return to their offices this month, but lacked desks to seat them all, seeding further confusion.
The federal downsizing has prompted dire warnings from tax preparers: File early if you want to avoid delays in getting a refund, or if you need help from an IRS agent.
'It's hard to imagine that you could lay off 7,000 people right in the middle of tax-filing season and there being no impact,' said David Kass, executive director of the nonprofit Americans for Tax Fairness.
In a March letter to Melanie Krause, acting IRS commissioner, congressional Democrats voiced fear that job cuts would embolden tax evaders.
Where's my refund? On its way, the data suggest.
If the IRS is in disarray, however, it's hard to tell from the agency's own statistics.
The IRS received about 70.4 million tax returns through mid-March, compared with about 71.6 million in 2024. The agency has processed nearly all of them, 69.6 million.
For anyone worried about refunds, the IRS has dispatched nearly 50 million of them, up from last year. The refunds total about $163 billion, compared with $153 billion at the same time in 2024. The average refund is $3,271, up from $3,109 a year ago.
'I'd say it's been smooth sailing,' said Mark Gallegos, a Chicago CPA whose firm handles thousands of returns. 'No problems at all.'
That doesn't mean Gallegos would give the IRS high marks across the board. Getting a customer service agent on the telephone can take a while. If you send a letter to the IRS, don't expect a reply in the same week. Or month.
But those delays aren't new. Gallegos says wait times were about the same a year ago, under the Biden administration, when IRS staffing was at a peak.
What happens if you make mistakes on a tax return?
If any taxpayers are thinking of getting reckless with a return this spring, Gallegos advises against it.
'The IRS continues to operate and has a robust system in place to detect discrepancies,' he said. 'When people say, 'I can just cut corners,' I would be leery of that.'
People matter, of course. But the IRS uses computers to compare your entries on a return to the numbers on official tax forms, including W-2s and 1099s, according to Investopedia.
If two numbers don't match, 'an automatic letter can be sent to you with an amount due on taxes. No IRS agents needed,' said Michelle Crumm, a Michigan tax expert.
If you subtract a zero from the income reported on your W-2, or 'forget' to list thousands of dollars of income on a 1099, the IRS will probably figure it out.
'You could leave something off of your tax return,' said Jennifer Hill, compliance manager at IRIS Software Group. 'You could have two W-2s, and you could leave one off. It's always going to catch up to you.'
Here's how not to get audited
If you want to avoid drawing the attention of the taxing authorities, here are some simple tax-season tips from the experts.
Gather all of your tax documents – W-2s, 1099s and such -- so you report all the income that third parties are reporting on you.
Double-check the numbers on those forms. Make sure they are accurate. The IRS is looking for mismatches.
Filing your taxes online "can help you avoid a lot of those mistakes," because the software can do the math, said Courtney Alev, a consumer financial advocate at Credit Karma.
Don't get greedy with expenses. If you operate a small business and claim outrageous deductions, the IRS might flag your return, Gallegos said.
Don't claim home-office expenses just because you have a home office. Those expenses are generally tax deductible if you are self-employed. They don't apply to regular employees who work from home.
Don't claim excessive charitable contributions. As Investopedia notes, a person with a $30,000 income isn't likely to donate $15,000 to charity.
Don't make a lot of money. The IRS has an obvious incentive to go after taxpayers who earn more: There are more tax dollars at stake.