Downsized IRS Walls Out Taxpayers, Tax Pros with Service Cuts
Where IRS delays become firm work
| IRS function | Documented finding | Potential work for firms |
|---|---|---|
| Practitioner phone line | More than 5.7 million calls, about 57% answered; holds of up to two hours reported, often ending in disconnects | Repeat calls and callbacks; client issues held open longer |
| Authorizations (CAF) | Posted processing time 13 business days; some members report up to 24 | Status checks, resubmitted forms, delayed transcript pulls |
| Correspondence | 6.8 million pieces unanswered; 59% overdue | Tracking unanswered responses; explaining open items to clients |
| Payroll returns | Form 941 averages 72 days to process vs. a 32-day standard | Reconciling account status for payroll clients |
| Identity theft | About 20 months average for cases closed FY2023–25; 582 days for FY2025 closures through June | Case monitoring; refund-status explanations |
| Refunds | About 4.2 million notices seeking bank information; paper checks take 36 days, vs. 13 | Helping clients respond; refund-status inquiries |
| Information returns | FIRE closes Nov. 19, 3 p.m. ET; IRIS becomes the only e-file system Jan. 1, 2027, including prior-year returns and corrections; separate transmitter control code required | New IRIS application, workflow migration, rerouted corrections |
IRS shifts work to accountants with delays, dead phones, and employee departures.
By CPA Trendlines
Despite the IRS’s insistence it’s processing 98% of the returns it receives, practitioners are reporting two-hour phone waits, authorizations that take weeks to post and client problems that remain unresolved after they finally reach an employee.
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The problem, apparently, is the difference between routine e-filed processing and what happens when a case needs an actual human.
