IRS Announces January 27 as the Start of the 2025 Tax Season
The IRS announced on Friday that January 27 will officially start the 2025 season. The agency anticipates more than 140 million tax returns to be filed by the April 15 deadline.
This announcement comes as the IRS undergoes a significant overhaul, aiming to enhance its technology and customer service with funding from the Inflation Reduction Act, signed into law in August 2022. The overhaul includes tens of billions of dollars allocated to the agency to support these improvements.
The IRS is also expanding its Direct File program, which allows taxpayers to file their taxes directly with the agency for free. Starting January 27, this service will be available in 25 states, an increase from the 12 states included in last year’s pilot program. This program enables states with simple W-2s to file directly with the IRS. By October, participants had claimed more than $90 million in refunds through the program.
The IRS expects most refunds to be issued within 21 days. payers can check the status of their 2024 income refunds using the “Where’s My Refund?” tool within 24 hours of e-filing. For those who file paper returns, refund information will typically be available after four weeks.
The agency aims to maintain service levels from previous years, including wait times of less than five minutes for assistance. For the upcoming tax season, the IRS plans to offer 10,000 extended office hours and expand its rural outreach program by 20%, increasing the number of returns prepared. Efforts are also being made to simplify notifications, making them easier to understand.
IRS Commissioner Daniel Werfel emphasized improving public awareness of the Earned Income Tax Credit (EITC). He noted that nearly one in five eligible taxpayers fail to claim the credit due to a lack of awareness or understanding of their eligibility.
As in previous years, the IRS warns taxpayers to be vigilant against scams. The agency highlights that fraudulent actors often emerge during the filing season, making false promises of help or issuing fake threats to extract payments for penalties that payers do not owe. Filers are encouraged to visit IRS.gov and search “scams” for the latest information.
The commissioner also mentioned that the supplemental funding provided by Congress enables the IRS to maintain its current staffing levels. He cautioned that eliminating this funding could halt progress in the agency’s technology and tools.
