Many taxpayers continue to face delays in receiving their federal tax refunds for the 2025 filing year amid ongoing challenges at the Internal Revenue Service (IRS). The agency has been grappling with significant staffing shortages and customer service difficulties, contributing to prolonged wait times and unresolved refund issues.
According to recent data cited by tax experts, the IRS lost nearly one-third of its workforce—about 31,000 employees—between January 2025 and January 2026. This reduction has translated into a decline in call center responsiveness and longer wait times for taxpayers seeking assistance. Several filers and tax preparers have reported persistent struggles when attempting to contact the agency.
Examples include a retired finance professional from the Washington, D.C., area who noted that one of his clients, who electronically filed their return in February, has yet to receive a refund totaling five figures. Other taxpayers have been given phone numbers to call repeatedly but have been unable to reach IRS representatives. These experiences align with reports of partial refunds being issued incorrectly and lengthy back-and-forth correspondence with the agency that delays resolution even further.
In response to these challenges, some tax professionals and filers are reconsidering their approach to federal tax payments in the coming year. Instead of anticipating a refund, they may opt to owe taxes when filing to avoid waiting for delayed reimbursements. However, this strategy requires careful management to prevent incurring IRS penalties for underpayment.
Under current regulations, taxpayers who owe $1,000 or more in federal taxes generally must pay at least 90% of their total tax liability by April 15 to avoid penalties. Payments can be made through withholding from wages or other income sources, including Social Security and retirement distributions, or by making quarterly estimated tax payments. The deadline for these estimated payments is spread across four dates: April 15, June 15, September 15, and January 15, 2027.
Taxpayers are advised to adjust their withholding or estimated payments based on their anticipated income to comply with “safe harbor” provisions, which protect against penalties. For individuals earning $100,000 or less, making equal payments at least equal to the prior year’s tax can suffice, while those with incomes exceeding $150,000 should withhold at least 110% of the previous year’s tax liability.
Experts emphasize the importance of consulting tax advisers early in the year to align payment strategies with IRS requirements and avoid interest charges, which currently stand at a daily compounded rate of 7% on underpayments. Making timely and accurate payments remains critical amid ongoing IRS operational constraints.