Final Results of the 2025 Filing Season

Report Information

Summary

The 2025 Filing Season was successful with several key improvements. For example, the IRS processed more tax returns when compared to the 2024 Filing Season and exceeded its 85 percent level of service goal for the filing season on its telephone lines. Key Program Metric Filing Season Filing Season Returns Received 142.8M 144.8M Returns Processed 139.9M 142.2M Refunds Issued 92.9M 92.0M Average Refund Amount $2,864 $2,947 Toll-Free Average Speed of Answer 4.1 minutes 3.9 minutes Taxpayers Assisted In-Person at a Taxpayer Assistance Center 914K 996K Several initiatives reduced the IRS workforce since January 2025. However, these initiatives had no significant impact on the 2025 Filing Season because critical filing season positions were exempted from the initiatives through May 15, 2025, and June 30, 2025. However, we expect workforce reductions to impact key processing programs and customer service going forward. We are concerned about how this will impact the 2026 Filing Season. Key IRS functions responsible for managing the filing season have lost 17 to 19 percent of their workforce. The IRS initiated a Zero Paper Initiative effort to expand scanning and digital processing of paper-filed tax returns. It was expected to mitigate the impact of some of the staffing losses on the 2026 Filing Season. However, the initiative is already delayed. In addition, IRS management projects that they would need to hire approximately 3,500 new employees to achieve an 85 percent toll-free telephone level of service during the 2026 Filing Season. IRS management also projects that its Accounts Management adjustments ending inventory for Fiscal Year 2026 could grow to approximately six million, exceeding pandemic levels by nearly two million. Accounts Management adjustments inventory includes adjustments associated with correspondence, injured spouse, etc. Finally, staffing losses in the IRS’s Information Technology function and recently enacted legislation create additional challenges for the IRS as it prepares for the 2026 Filing Season. The One Big Beautiful Bill Act will require the IRS to make substantial changes ahead of the 2026 Filing Season, but the agency will have fewer Information Technology resources to timely update processing systems.