The IRS has officially announced that the 2025 tax season will commence on Jan. 27, with an estimated 140 million tax returns expected to be filed by the April 15 deadline. This announcement comes as the agency undergoes a significant overhaul, aiming to enhance its technology and customer service processes following the allocation of tens of billions of dollars through the Democrats’ Inflation Reduction Act, signed into law in August 2022.
One of the key initiatives being expanded by the IRS is its Direct File program, which enables taxpayers to file their taxes directly with the agency for free. This program will be available in 25 states starting Jan. 27, up from 12 states in the previous year's pilot program. In 2024, participants in the pilot program claimed over $90 million in refunds by submitting their returns directly to the IRS.
The IRS anticipates issuing most refunds in less than 21 days and offers the 'Where’s My Refund?' tool for taxpayers to track the status of their income tax refund within 24 hours of e-filing. Additionally, the agency aims to maintain its service standards, including wait times of under 5 minutes for assistance.
For the upcoming tax filing season, the IRS plans to provide 10,000 extended office hours and expand its rural outreach program by 20% to assist more taxpayers in preparing their returns. Efforts are also underway to simplify notifications and raise awareness about the Earned Income Tax Credit, which many eligible taxpayers fail to claim.
While emphasizing the importance of safeguarding against tax scams, the IRS warns filers to remain vigilant during the filing season, as fraudulent activities tend to increase. The agency advises individuals to visit IRS.gov and search for 'scams' to stay informed about the latest developments in this area.
Commissioner Daniel Werfel highlighted the significance of continued investment in the nation's tax system, noting that the IRS has made significant strides in improving its operations. He emphasized that sustained funding is crucial for the agency to enhance its technology and tools further.
