IRS Announces January 27 Start for 2025 Tax Season/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The IRS has set January 27 as the official start of the 2025 tax season, anticipating over 140 million returns by the April 15 deadline. The agency is expanding its Direct File program to 25 states and aims to maintain improved service levels, including faster refunds and shorter wait times. IRS Commissioner Daniel Werfel highlighted continued efforts to modernize and educate taxpayers about credits like the Earned Income Tax Credit.
2025 Tax Season Highlights: Quick Looks
- Tax Season Dates: Filing begins January 27, with a deadline of April 15.
- Expanded Services: The Direct File program grows to 25 states, offering free filing options for taxpayers.
- Refund Timelines: Most refunds are expected within 21 days, with real-time status updates via the IRS website.
- Service Improvements: The IRS plans to expand office hours and rural outreach while simplifying notifications.
- Taxpayer Alerts: The agency warns against scams and encourages filers to claim credits like the Earned Income Tax Credit.
IRS Announces January 27 Start for 2025 Tax Season
Deep Look
Start of the 2025 Tax Season
The IRS announced January 27 as the official start date for the 2025 tax season, with an expected 140 million returns to be filed by the April 15 deadline. This year’s tax season comes as the agency continues a multibillion-dollar overhaul funded by the Inflation Reduction Act, signed into law in 2022.
Expanded Direct File Program
A key change for 2025 is the expansion of the IRS’s Direct File program, which allows taxpayers to calculate and submit their returns for free without commercial software. Initially piloted in 12 states last year, the program will now be available in 25 states, offering more Americans access to simplified filing options.
During the 2024 pilot, taxpayers using Direct File claimed over $90 million in refunds, highlighting the program’s potential to save money and streamline the filing process.
Efficient Refund Processing
The IRS expects most refunds to be issued within 21 days of e-filing. Taxpayers can use the “Where’s My Refund?” tool to track their returns within 24 hours of submission. For paper filers, refund updates typically take four weeks.
Service Improvements and Outreach
Building on past successes, the IRS aims to maintain enhanced customer service levels, including wait times of less than five minutes for assistance. Plans for the 2025 tax season include:
- Extended Office Hours: 10,000 additional hours at IRS offices nationwide.
- Rural Outreach Expansion: A 20% increase in the number of tax returns prepared in rural areas.
- Simplified Notifications: Revised language in correspondence to improve clarity.
Promoting Tax Credits
IRS Commissioner Daniel Werfel emphasized the agency’s efforts to boost awareness of the Earned Income Tax Credit (EITC). Nearly one in five eligible taxpayers fail to claim the credit due to lack of knowledge or awareness of their eligibility.
“This has been a historic period of improvement for the IRS,” Werfel said, highlighting the impact of recent supplemental funding on modernizing services and tools.
Scam Awareness
As in previous years, the IRS warned taxpayers to remain vigilant against scams during filing season. Fraudsters often target filers with fake promises or threats related to tax payments and penalties. The agency advises visiting IRS.gov for up-to-date scam information.
Future Challenges
Werfel cautioned that the agency’s progress depends on continued investment. Without sustained funding, technology and service improvements may stagnate, limiting the IRS’s ability to meet taxpayer needs.
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