IRS Tax Refunds Delayed After Entire Department Disbanded by DOGE

June 2 , 2025

Washington, D.C. — Millions of Americans expecting their IRS tax refunds this June are facing fresh uncertainty after the entire department responsible for issuing refund checks—the IRS’s “Checks and Balances” division—was abruptly disbanded by the Department of Government Efficiency (DOGE), led by Elon Musk.

The move, which sources say stemmed from Musk’s misinterpretation of the department’s name, has left taxpayers and former staffers alike bewildered. According to one former employee, “We issue checks, we verify balances. We’ve got nothing to do with oversight or DEI.” The confusion reportedly arose when Musk, seeking to streamline federal operations, believed the “Checks and Balances” unit was concerned with government oversight or diversity initiatives, rather than the literal processing and verification of tax refund payments.

The IRS had already warned of possible delays this season, citing budget cuts and staffing shortages as key factors slowing refund processing. Now, the sudden elimination of the team that handled physical refund checks threatens to exacerbate these issues, particularly for taxpayers who opted for paper checks rather than direct deposit.

Taxpayers who filed electronically and selected direct deposit are still expected to receive their refunds on schedule—typically within 21 days of filing. However, those awaiting mailed checks may now face indefinite delays, as the infrastructure for issuing and verifying these payments has been dismantled.

DOGE’s presence at the IRS had already raised alarms among lawmakers about data security and the potential for refund delays. In February, Senators Ron Wyden and Elizabeth Warren expressed concern that DOGE’s efforts could “disrupt IRS systems during tax season, potentially leading to delays in tax refund processing." Those warnings now appear prescient, as the agency scrambles to respond to the sudden operational gap.

The IRS advises taxpayers to use the “Where’s My Refund?” tool to track the status of their payments and recommends contacting the agency if refunds have not arrived after 21 days for e-filers or six weeks for paper filers. However, with the Checks and Balances department gone, paper filers may face significantly longer waits or additional complications.

While the average refund this year is just under $3,000—a crucial sum for many families—the timeline for receiving those funds is now in flux. As the IRS works to reassign responsibilities and restore normal operations, taxpayers are left hoping for a swift resolution and clearer communication from both the IRS and DOGE.

For now, the only certainty is that the 2025 tax season will be remembered for its confusion, delays, and an unexpected lesson in the importance of reading department names carefully.

Kate Laurensen