Tax refund delays impact hundreds of thousands as IRS faces staffing shortages

(WAND) - Many people who have already filed their taxes are experiencing major delays in their tax refund. Experts say this tax season is more complicated than previous ones.

"People file their taxes with the expectation of a timely return. Returns are really used for, or a tax refund is [often used to] pay back, or pay down outstanding debts that people might have, or really plan for the future," said Anisha Steephen, the former senior advisor for the U.S. Treasury.

Steephen explained how more than 800,000 taxpayers are facing delays in getting their refunds.

"The IRS is down almost 30% of its workforce. They have also been unable to hire all of the staff and capacity that they need to process tax returns for this filing season," Steephen said.

As the federal government moves away from paper checks, Steephen said those who don't have a bank account or file through the mail may experience months of delays.

"They got a little notice from the IRS saying that they needed to provide that information as soon as possible. But those folks are expecting about a 10-week delay in any processing and refunds," Steephen said.

At the same time, help from the IRS is limited since the agency has cut staff. There are a few tips that Steephen said can help avoid scams and delays for those who have yet to file.

"Be wary of any social media ads promising you a really big refund. All of that is usually predatory behavior by the tax prep industry, particularly on low-income consumers who may not have the capacity and resources to sort of navigate the tax system themselves," Steephen said.

The new tax regulations could have a heavier impact on low-income families and people with special circumstances.

"It's people who live in rural communities, survivors of domestic violence, people who are in religious communities that don't often have access to the internet. There are many, many, many, many Americans [who] will be impacted by the choices that the IRS is making right now," Steephen said.

Many people in the country are living paycheck to paycheck, and Steephen said families are also living refund to refund. The deadline to file your taxes is April 15.