Tax Filing Season Kicks Off as IRS Shakes Off Hangover from 2025

It’s the time of year when everyone interacts with the IRS.

The on-time kick-off of the tax filing season Monday is an early positive indicator after months of preparation by the agency. Still, the IRS is shaking off the hangover from the steep workforce cuts, leadership exits, and government shutdown in 2025 that may have ramifications that bleed into this season.

The risk for another government shutdown is also in the mix again with the clock to fund the government running out Friday. Previous shutdown plans suggest that most IRS employees are likely to stay on during a shutdown occurring during a filing season.

Many taxpayers are expecting a hefty refund given the retroactive changes from the GOP’s multi-trillion-dollar tax-and-spending law. Republicans are hoping those refunds could fuel their political support ahead of midterm elections.

Here’s what to watch.

Refund Timeliness

How quickly the IRS can give money to Americans after they file will be an indicator of the health of the agency’s operation during the season, after roughly a quarter of the agency’s workforce exited last year under pressure from the Trump administration’s drive to shrink the government.

Improvements to the agency’s online offerings has sped up the refund processing times in recent years, especially for those file electronically. The IRS generally issues refunds within 21 days of e-filing.

Returns filed on paper, more complicated returns, and those with errors typically take longer to process, which may be amplified by the staffing cuts.

The Treasury Department’s Zero Paper Initiative, which was meant to fill the gap of workforce losses, already was delayed ahead of the government shutdown in 2025, according to the agency’s watchdog.

Phones Answered

Getting a hold of someone at the IRS has historically been a tough feat. Phone calls answered is good barometer for public opinion at the agency and is also what sends floods of calls to lawmakers’ offices.

The rate of calls answered improved over the past couple years, according to agency watchdogs. Agency backers and some Democrats attributed that to billions in new funding the IRS got in Democrats’ 2022 tax-and-climate law. Republicans in Congress have succeeded in clawing back much of that law’s funds, and more funds are likely to be rescinded in the near future, though the cuts have been focused on areas other than taxpayer services.

Critics say workforce losses from 2025 may make it harder to reach the agency this filing season.

The IRS is trying to make it so that’s not the case.

IRS management in 2025 said the agency needed to hire about 3,500 more employees to achieve the agency’s goal of a phone service level of 85%.
The IRS told the Government Accountability Office in a Jan. 20 report that it planned to onboard about 3,500 workers.

Cash in Pockets

Refunds are generally expected to be higher following the passage of the 2025 tax-and-spending law.

Congressional Republicans are counting on lower tax bills and higher refunds as a way to win over American voters ahead of the midterms.

Still, the refunds may not be as robust as some are expecting.

Some of the President Donald Trump’s flagship campaign promises, like tax breaks for tip and and overtime income, come with restrictions that will catch some by surprise.