The Internal Revenue Service (IRS) on Friday announced January 27 as the official start date of the 2025 tax season, and expects more than 140 million tax returns to be filed by the April 15 tax deadline.
The announcement comes amid a sweeping overhaul of the agency as it attempts to improve its technology and customer service processes with billions of dollars allocated to the agency through the Democrats’ Inflation Reduction Act signed into law in August 2022.
The IRS said it is expanding its program that allows people to file their taxes directly with the agency for free. The federal tax collector’s Direct File program, which allows taxpayers to calculate and submit their returns directly to the government without using commercial tax preparation software, will be available starting Jan. 27 to taxpayers in 25 states, up from 12 states. Above which were part of the previous. Pilot Program of the Year.
The pilot program in 2024 allowed people in some states with a very simple W-2 to calculate their returns and submit them directly to the IRS. The IRS said in October that people who used the program had claimed more than $90 million in refunds.
The IRS expects most refunds to be issued in less than 21 days. The agency says taxpayers can use the Where’s My Refund? Check the status of your 2024 income tax refund within 24 hours of e-filing. Refund information is generally available after four weeks for taxpayers who filed paper returns.
The agency also said it expected to maintain the level of service it has achieved in the past, including wait times of less than 5 minutes for assistance.
Two goals for the upcoming tax filing season are to offer 10,000 extended office hours and expand the IRS rural outreach program by 20%, increasing the number of returns prepared. The agency said it is also continuing to simplify information to make the language easier to understand.
IRS Commissioner Daniel Werfel also said the IRS is working to improve public awareness of the Earned Income Tax Credit, stating that about 1 in 5 eligible taxpayers don’t claim it because they weren’t told about it. Don’t know or don’t realize they are qualified.
As in previous years, the IRS also urges filers to avoid tax scams, saying bad guys tend to increase their numbers during filing season, making false promises of tax help or luring people into paying penalties. Make false threats to make payments which they do not have to pay. Filers can visit IRS.gov and search “scams” for the latest information.
The multiyear supplemental funding provided by Congress allows the IRS to maintain its current staffing levels, the commissioner said on the call, adding that the IRS’s technology and equipment would stagnate if the funding ran out.
“This has been a historic round of reform for the IRS,” said Commissioner Werfel. “Much more can be done with continued investment in the country’s tax system.”
