Trump orders, KY processing pause may delay your state, federal tax refunds. What to do
Filing your federal and Kentucky state taxes early and error-free this year could help any potential refund hit your bank account sooner.
The Internal Revenue Service was among the federal agencies targeted by President Donald Trump’s January hiring freeze (which also rescinded standing job offers) and deferred resignation program.
That effort, which offered eight months of pay to anyone who opted to resign, was altered for some IRS employees involved in the current tax season, requiring them to continue duties through Thursday, May 15. On Wednesday, a judge declined to extend a previous halt to that program, and the White House reported 75,000 federal employees had taken the offer.
Additionally, according to a memo reviewed by the New York Times and reported Monday, the Department of Homeland Security has requested some IRS employees be deputized to work on immigration enforcement amid Trump’s crackdown.
All this comes as the IRS expects more than 140 million individual tax returns to be filed with the agency, which has long been plagued by understaffing and poor retention. The IRS did not respond to a request for comment from McClatchy News on potential tax delays.
At the state level, the Kentucky Department of Revenue is pausing the processing of state tax returns for a period later this month to switch over to a new tax system.
What does all this mean for your taxes and any potential refund? The deadline to file is Tuesday, April 15. Here’s what Kentucky filers should know.
How can I prevent delays in getting my tax return this year?
The IRS recommends filing electronically through free services if you are able and to be on the lookout for tax scams. Red flags can include promises of a large refund or promises to claim credits you may not be eligible for, demands for payment and odd and misspelled website links.
The federal agency offers some answers to frequently asked questions and an interactive tax assistant online.
Kentucky is not one of the states eligible to use the IRS’ Direct File tool.
Those hoping to get any potential refund from their state return soon should be sure to file their Kentucky state taxes quickly. The department of revenue will pause processing returns — though individuals can still file them — from Wednesday, Feb. 26, to at least Friday, March 14.
The implementation of the new system, called MyTaxes, will also affect business filers, who will not be able to file returns or receive refund payments, the Herald-Leader previously reported.
The Kentucky Department of Revenue did not respond to previous requests for an interview on the processing pause, but in a Jan. 24 email to the Herald-Leader, Kinsey Woodson, communications director for Kentucky’s Finance and Administration Cabinet, wrote: “We’ve contacted all individual income taxpayers to make them aware of the update and to encourage them to file early.”
To file your Kentucky state taxes, visit the department of revenue’s website or use free options available online that offer both state and federal return filing.
The department of revenue recommends filing electronically for the most expedient results, and processing typically takes four to six weeks.
Finally, opting for direct deposit on your refund should help you get your money back faster. Kentucky only offers direct deposit on state refunds for those who file electronically.
Do you have a question about Kentucky for our service journalism team? We’d like to hear from you. Fill out our Know Your Kentucky form or email ask@herald-leader.com.
This story was originally published February 14, 2025 at 5:30 AM.