The Internal Revenue Service (IRS) has officially announced that the 2025 tax filing season will commence on January 27. According to Commissioner Danny Werfel, the IRS aims to build upon the successes of recent filing seasons, contingent on Congress providing the promised funding to support modernization and operational goals.
An estimated 140 million individual tax returns for the 2024 tax year are expected to be filed by the April 15 deadline. The IRS’s efforts are bolstered by funding from the Inflation Reduction Act of 2022, which initially allocated $80 billion over 10 years. However, this amount was reduced to $60 billion in the Further Consolidated Appropriations Act of 2024, with further cuts amounting to $20 billion in December 2024 following a congressional continuing resolution.
Commissioner Werfel emphasized the critical need for adequate funding, stating, “The decision to fund the IRS adequately is about creating an agency that taxpayers can easily interact with, one that swiftly tackles scams and fraud, and modernizes its infrastructure to serve Americans better.”
Key Improvements for Taxpayers in 2025
The IRS highlighted several advancements aimed at making the tax filing process more efficient and user-friendly:
- Expanded Direct File Program: Available in 25 states, the program now covers more tax situations and allows eligible taxpayers to file their taxes directly with the IRS for free starting January 27.
- Enhanced Free File Program: Free software tools for taxpayers with an adjusted gross income of $84,000 or less in 2024 are accessible now through the IRS’s Free File program.
- Individual Online Accounts: These accounts now offer greater functionality, including scam alerts via a banner notification
- Redesigned Notices: The IRS plans to deploy 84 additional redesigned notices in 2025, adding to the 200 notices updated in 2024 to make communication clearer and more effective.
- Voice Bot Services: Multilingual support in English and Spanish to assist taxpayers.
- Efficient Refund Processing: Most tax refunds are processed within 21 days. The popular “Where’s My Refund” online tool allows taxpayers to track their filings within 24 hours of electronic submission.
“We are steadily transforming the taxpayer experience, brick by brick and tool by tool,” Werfel said. “These enhancements aim to make tax filing easier, less stressful, and more cost-efficient for all Americans.”
Need Help with Tax Filing?
Preparing for tax season can be challenging, but you don’t have to do it alone. At Virtue CPAs, we provide expert accounting and tax services to help you navigate the complexities of tax filing with confidence. Contact us today for personalized assistance and make your 2025 tax season stress-free!