The 2025 tax season began Monday January 27, 2025 when the IRS started to accept and process 2024 individual income tax returns. This early start gives taxpayers the opportunity to file their returns sooner, potentially leading to refunds arriving as early as February. However, factors like claiming the Earned Income Tax Credit (EITC) may cause delays for some filers.
Operational challenges may also impact the IRS this tax season. A hiring freeze at the agency, initiated by the White House, remains in effect until the Treasury Secretary, along with the Office of Management and Budget and other advisors, determines it should be lifted. The freeze could contribute to delays in processing returns and issuing refunds.
During a recent rally in Las Vegas, former President Donald Trump mentioned plans to reallocate resources, including IRS personnel, to other priorities. He also suggested reducing the workforce hired under the Inflation Reduction Act. These statements reflect ongoing debates over the agency’s expanded budget and workforce.
Current IRS Commissioner Danny Werfel, who has led the agency for two years, announced he will step down on January 20, 2025, to ensure a smooth transition in leadership. Werfel had previously stated his intention to serve through 2027 but cited the current climate as a factor in his decision to resign.
In 2024, the IRS processed over 15.3 million federal income tax returns during the first week of the tax season, which began on January 29. During that week, the agency issued 2.6 million refunds totaling nearly $3.65 billion. This year, the IRS expects to handle over 140 million individual federal income tax returns before the April 15 deadline.
More than half of taxpayers are anticipated to file their returns with the assistance of a tax professional, while the remainder will use tax software or file manually. Electronic filing is expected to account for the majority of submissions, ensuring faster processing times.
Meanwhile, the Georgia Department of Revenue will begin processing 2024 state income tax returns on Monday, February 3, 2025.
Taxpayers are advised to file early and ensure their submissions are accurate to avoid delays in receiving their refunds. As the season progresses, updates on processing times and related developments will be closely monitored.
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