The Clock is Ticking: Tax Season Begins January 26
As of January 26, American taxpayers can start submitting their tax returns for 2025, kicking off the highly anticipated and often dreaded tax filing season. With the IRS gearing up to process a staggering 164 million individual income tax returns this year, which is comparable to last year's numbers, the agency is bracing itself for what could be a challenging season.
The IRS has been grappling with an unprecedented brain drain of over 26% of its workforce, as tens of thousands of experienced tax collectors have left the agency through planned layoffs and buyouts sparked by Elon Musk's Department of Government Efficiency. This exodus has raised concerns among tax experts, who warn that the impending shortage of skilled workers could hinder the agency's ability to efficiently process returns.
Despite these challenges, IRS officials remain optimistic about the upcoming season. Frank Bisignano, the new CEO of the agency, assures taxpayers that the workforce remains committed to its mission and that the organization has updated its information systems to incorporate the latest tax laws. Additionally, the IRS will be implementing major provisions from Republicans' tax and spending package, which may lead to more questions for taxpayers.
Acting IRS Commissioner Scott Bessent expressed confidence in the agency's ability to deliver results and drive growth for businesses and consumers alike. While the average refund amount is expected to increase due to Republican tax law changes, experts caution that this year's filing season could be rocky, particularly with the reduced workforce and significant tax law changes on the horizon.
As taxpayers begin their journey into tax season, it remains to be seen how the IRS will navigate these challenges. With a critical deadline of April 15 looming, one thing is certain: it's time to dig out those W-2s and start working on that tax return.
As of January 26, American taxpayers can start submitting their tax returns for 2025, kicking off the highly anticipated and often dreaded tax filing season. With the IRS gearing up to process a staggering 164 million individual income tax returns this year, which is comparable to last year's numbers, the agency is bracing itself for what could be a challenging season.
The IRS has been grappling with an unprecedented brain drain of over 26% of its workforce, as tens of thousands of experienced tax collectors have left the agency through planned layoffs and buyouts sparked by Elon Musk's Department of Government Efficiency. This exodus has raised concerns among tax experts, who warn that the impending shortage of skilled workers could hinder the agency's ability to efficiently process returns.
Despite these challenges, IRS officials remain optimistic about the upcoming season. Frank Bisignano, the new CEO of the agency, assures taxpayers that the workforce remains committed to its mission and that the organization has updated its information systems to incorporate the latest tax laws. Additionally, the IRS will be implementing major provisions from Republicans' tax and spending package, which may lead to more questions for taxpayers.
Acting IRS Commissioner Scott Bessent expressed confidence in the agency's ability to deliver results and drive growth for businesses and consumers alike. While the average refund amount is expected to increase due to Republican tax law changes, experts caution that this year's filing season could be rocky, particularly with the reduced workforce and significant tax law changes on the horizon.
As taxpayers begin their journey into tax season, it remains to be seen how the IRS will navigate these challenges. With a critical deadline of April 15 looming, one thing is certain: it's time to dig out those W-2s and start working on that tax return.