Uncle Sam Is Running on a Skeleton Crew — Here’s How to Avoid Costly Tax Season Pitfalls

Uncle Sam is running on fumes, and your tax return could get caught in the crossfire. The IRS cut over a quarter of its workforce in 2025, leaving filers exposed to processing delays, incorrect notices, and refund headaches. The agency is now on its eighth leader since President Trump took office, and phone lines are effectively useless.

• Paper check filers are getting hit hardest, with the IRS sending CP53E notices requesting banking details and refund delays now stretching well beyond 10 weeks.
• Even small name changes on joint returns, like reordering names or slight middle-name tweaks can trigger processing issues and slow things down.

Cross-checked: Report all nontaxable income — like Roth IRA distributions, HSA payouts, and 401(k) rollovers — since the IRS cross-checks your 1099s and any mismatch can trigger an error. Always respond to IRS letters, get proof for anything you mail, and if something’s unclear, take the six-month extension instead of filing a messy return that could draw more scrutiny later. As CPA Ryan McKeown puts it, “At best, this is a bother. At worst, the filer could owe tax if he can’t provide proof of a mistake.”