Staff cuts at the Internal Revenue Service (IRS) have led to delays in processing paper returns, according to official reports, after President Donald Trump ordered DOGE Department “super secretary” Elon Musk. Taxpayers who submitted their documents around April 15 face waits of 4-8 weeks, but experts point out that filing early avoids complications near deadlines.
In May 2025, the IRS processes returns received in March, confirming an operational backlog. Those who mailed their forms close to the deadline will receive refunds between May and June. Electronic returns take up to 21 days, but physical returns require more time due to manual verification.
Groups affected by IRS delays in May 2025
Taxpayers with expired ITIN (Individual Taxpayer Identification Number) experience additional delays. The IRS accepts these returns, but processing is slowed down by validation requirements. This explains why some refunds are extended until May, even for those who met deadlines.
Refunds in May include those who filed complex returns on or around April 15. Returns with errors, credits such as the EITC or ACTC, or ITIN renewals require additional reviews. These factors, combined with staff reduction, extend wait times.
Between March and April, the IRS received 12 million paper returns, according to internal data. 60% of these are still in process, confirming the accumulation of work. Taxpayers in states with a high migrant population, such as California or Texas, are the most affected by delays linked to ITIN.
Which tax returns are most late and why?
The controversy over personnel cuts arises after the layoff of 6,000 employees between 2024 and 2025. Analysts indicate that this reduced processing capacity by 18%. Although the IRS maintains that it meets deadlines, complex or late cases face greater impact.
The IRS prioritizes electronic returns, which represent 90% of submissions. However, the remaining 10% (on paper) takes 3 times as much time. Automated systems detect errors within 48 hours, but manual corrections take up to 3 weeks, according to internal reports.
ITIN renewal takes 7-11 weeks, according to the official IRS site. Taxpayers who did not update this number before April see delays in their refunds. This procedure mainly impacts non-residents and foreigners without Social Security.
Processing speed has historically varied between 2-6 weeks for paper returns. In 2025, the average is 6.3 weeks, according to data from the Treasury Department. This reflects the operational challenges following the cuts and the increase in complex cases.
When does the IRS expect to have all tax refunds processed?
The IRS projects to issue 95% of refunds within 8 weeks for paper returns. However, 1.2 million cases could be extended until July due to errors or additional verifications. The entity recommends using e-file and verifying data to avoid delays.
Experts suggest avoiding sending physical statements after April 1. “Those who file around April 15 face a greater risk of delays,” says a tax analyst. Electronic returns with direct deposit reduce waits to 10-21 days, even with credits such as the EITC.
22% of ITIN taxpayers filed renewals after April, according to IRS figures. This created a bottleneck in May. The entity enabled an online system to streamline procedures, but its adoption was less than 35% due to language barriers.
The taxpayer groups most affected by delays
40% of taxpayers with ITIN are Hispanic, according to the Migration Policy Institute. This explains why delays in refunds disproportionately affect Latino communities. Errors in bilingual statements or lack of specialized advice aggravate the situation.
Community organizations in Florida and Arizona reported a 30% increase in late refund inquiries. “Many do not know how to renew their ITIN or correct errors without help,” says a tax assistance coordinator. The IRS offers guides in Spanish, but their dissemination is limited.
Although the IRS processed 85 million returns through May, 4.7 million remain pending. 70% correspond to cases with tax credits or physical documents. The entity hired 2,000 temporary employees in April, but their training will take until June.
In 2024, the IRS issued 92% of refunds in less than 6 weeks. By May 2025, the figure is 87%, according to the Taxpayer Advocate Service. The difference is attributed to budget cuts and greater complexity of declarations.
Complaints about delays increased 34% compared to 2024, according to the National Taxpayer Advocate. 45% involved ITIN or errors on forms. Only 12% of cases resolved in May received compensation for delays, compared to 18% in previous years.
