Federal employees across the country are facing more than just uncertainty, they’re facing job loss. With mass layoffs underway, a less obvious but very real threat is putting thousands more at risk: unfiled tax returns.
Under the current administration, job cuts are happening rapidly, and many employees are caught in the middle of unclear or changing policies. But one thing is becoming increasingly evident. If you are a federal employee and your tax returns are not filed, it could give the government all the reasons to terminate your employment.
A Firsthand Warning from Inside the Government
At Back Tax Expert, we’ve heard directly from federal employees with security clearances who are reading the fine print of new executive orders. In at least one case, an employee confirmed the order states that failure to file tax returns may be grounds for dismissal. It’s not hypothetical. It’s happening.
The situation is especially dangerous for probationary employees—those who have been employed for less than a year and lack union protections. These individuals are more vulnerable to termination and less likely to be reinstated. Some laid-off employees are being called back. Others are not. For those whose tax records aren’t in order, the odds of coming back are even lower.
Why Your Filing Status Matters Now More Than Ever
Here’s what makes this issue more urgent:
- Security clearances are being reviewed more aggressively
- Probationary employees have little protection
- Unfiled taxes can be considered a breach of employment requirements
- Processing times for paper returns can take up to 8 weeks
If your agency or clearance division asks for confirmation of your tax compliance, delayed filings could easily work against you.
What to Do If You Haven’t Filed
The worst mistake you can make right now is to wait. We’re entering one of the busiest seasons for accountants. You won’t be able to walk into an office and expect your returns to be turned around in a few days.
If you’re missing documents, here’s where to start:
- Request W-2s, 1099s, and mortgage interest statements from the IRS
- If you’re a federal employee, request W-2s through the Office of Personnel Management
- Prepare to mail your tax returns if they are from 2021 or earlier, as these can no longer be submitted electronically
- Plan for 6 to 8 weeks of processing time if you’re mailing returns
Even if your return shows a balance due, the act of filing alone is critical. Filing demonstrates good faith and a willingness to cooperate. In many cases, that’s enough to prevent immediate consequences while you arrange a payment plan or resolution.
Filing Isn’t Just Financial—It’s Professional
The IRS isn’t the only entity looking at your tax history anymore. Your employer might be, too. Agencies are tightening standards. Review boards are digging deeper. And your job could depend on something as basic as whether you filed your taxes.
Whether you’re still working or hoping to return to your position, now is the time to act.
Contact us today at 703-847-0757 or visit www.backtaxexpert.com
At Back Tax Expert, we help federal employees across the country resolve unfiled tax issues before they threaten your career. Don’t let paperwork put your future at risk.