NORFOLK, Va. — As tax season kicks off, some are wondering how, if at all, impending IRS layoffs might affect their ability to file taxes as well as receive a tax return.
The Trump administration is expected to cut thousands of IRS jobs as part of efforts to reduce the size of the federal workforce.
News 3 reporter Angela Bohon spoke with local tax professional Quenntaija Banks at the TaxGuru Financial & Public Services in the Berkley area of Norfolk.
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Banks believes that the IRS layoffs will likely not affect most taxpayers, particularly those who file electronically. She said that some people may be required to still file on paper, often due to past identity fraud or audits.
"A very small percent of people do paper, unless you’re old school and that’s just the way you like to do it," Banks stated.
The Associated Press reports that IRS workers involved in this year’s tax season have been instructed not to accept buyout offers until after the taxpayer filing deadline, based on a letter sent to IRS employees.
Banks mentioned she has received numerous calls about this situation and noted an increase in clients with 1099 forms.
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“There are a lot of individuals who have been doing DoorDash, Uber Eats, and a lot of gig work,” Banks explained. “They don’t know you can actually write off expenses: mileage, gas.”
However, she expressed concern that audits or amendments may be slowed or even halted due to the layoffs.
TaxGuru emphasizes that taxpayers should consider hiring a professional if any of the following apply:
- You're buying or selling a house
- You’ve had a significant change in pay
- You’re applying for a loan
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For those planning to file on their own, Banks recommends not to rush. She advises ensuring all documents are in order, including W-2s, 1099s if that applies to your situation, mortgage interest statements, and any unemployment compensation information.
April 15. is the deadline to file your federal tax return.
Residents of North Carolina maybe be eligible to receive an extension if they were affected by Hurricane Helene.