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Column: Federal layoffs will hit Virginians in their wallets come tax time

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Virginia taxpayers are on the brink of a crisis that could impact thousands of families, local governments and students for years to come. As part of a broad termination of probationary employees, I was recently dismissed from my position as a senior relationship manager in the Internal Revenue Services’ Stakeholder Partnerships, Education & Communication (SPEC) division. My role was the only one dedicated to expanding free tax assistance services in Virginia.

Now, with my position eliminated and no replacement planned, the consequences will be severe: millions in lost tax refunds, fewer financial literacy opportunities for students, a heavier burden on local governments, and an increase in predatory tax services that take advantage of vulnerable residents.

Let’s break this down as simply as possible. Imagine a big piggy bank that belongs to Virginia’s families. Every year, the government sets aside money for people who qualify — especially those who don’t make a lot of money — through tax refunds and special credits such as the Earned Income Tax Credit and Child Tax Credit.

Many people rely on Volunteer Income Tax Assistance (VITA) sites to help them file their taxes and get back the money they are owed. These free services are crucial, especially for families who can’t afford to pay for professional tax help.

Now, let’s imagine one VITA site that helps 1,000 people file their taxes. If each person gets an average refund of $3,000, that’s $3 million coming back into the local community. But it doesn’t stop there.

When people get their tax refunds, they don’t just keep the money hidden under their beds — they spend it on food, rent, gas, school supplies and other things they need. This spending helps businesses grow, keeps workers employed and strengthens the economy. Economists call this the multiplier effect, which means that every dollar someone spends helps create even more money in the community.

If the economic multiplier is two, that means those $3 million in refunds generate $6 million in economic activity — helping businesses, supporting jobs and boosting the local economy. Now, imagine that happening across dozens of VITA sites throughout Virginia. If these programs shrink or disappear, families lose money, businesses lose customers and the entire state economy suffers.

Beyond just helping families, VITA also plays an important role in education. In Virginia, high school students can earn career and technical education (CTE) credits by becoming certified VITA volunteers. This program doesn’t just check a box for graduation — it gives students valuable life skills by teaching them how taxes work.

Without someone to continue these partnerships and expand financial education in schools, students lose out on an important opportunity to learn real-world money skills that will benefit them for life.

VITA sites don’t operate in a vacuum. They rely on strong partnerships with Virginia’s commissioners of the revenue and local tax offices to serve as many people as possible. These offices already have their hands full and, without IRS support, many will struggle to keep up with demand.

Without accessible, free tax preparation services, many Virginians — especially low-income filers, seniors and non-native English speakers — will have no choice but to turn to paid tax preparers. Some of these are predatory services that take advantage of those who can least afford it, deepening financial hardship.

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The worst part? This was entirely avoidable. My termination was not due to poor performance but rather part of a broad dismissal of probationary employees without any consideration for the impact on Virginia taxpayers.

This position will never be replaced. The work I was doing to expand VITA, support local tax offices and build financial literacy in schools will simply stop. Once lost, these programs will be difficult — if not impossible — to rebuild.

Virginians deserve better. Our elected officials must step in before the damage becomes irreversible. I urge taxpayers, educators and community leaders to demand action — because the cost of doing nothing will be felt in every corner of the state.

Christopher Anderson, MBA, of Virginia Beach is a former IRS SPEC senior relationship manager and tax consultant.


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