IRS processes taxes efficiently despite staff cuts

The IRS has continued to process tax returns and issue refunds effectively, despite significant staff cuts. Thousands of employees have been laid off or resigned as part of a government efficiency initiative, raising concerns about potential disruptions. Tax professionals report that electronic filing systems are functioning well, with some delays noted in compliance areas. Refunds are being issued at a higher rate than last year, with the average refund amount increasing by nearly 6%. Former IRS Commissioner Danny Werfel acknowledged the agency's stability, attributing it to prior investments in technology. Critics warn that further staffing reductions could impact taxpayer services and revenue collection.