IRS Launches 2025 Tax Season with Expanded Digital Services and Free Filing Options

The Internal Revenue Service (IRS) has officially announced January 27, 2025, as the start date for the 2025 tax filing season, marking the beginning of acceptance and processing of tax returns for the 2024 tax year. The agency anticipates processing over 140 million individual tax returns before the federal deadline of April 15, 2025.

In a significant expansion of taxpayer services, the IRS is rolling out its Direct File program to 25 states, up from 12 states in the previous year’s pilot program. This free filing service allows eligible taxpayers to submit their returns directly to the IRS without using commercial tax preparation software. The program, which claimed more than $90 million in refunds during its pilot phase, will be available to residents of states including Alaska, Arizona, California, Connecticut, Florida, and several others.

The agency has implemented several technological improvements to enhance the filing experience. Taxpayers will now have access to expanded features on the IRS Individual Online Account, including the ability to view key details from their most recent tax returns, request IP PINs, and access account transcripts. Additionally, the IRS has introduced mobile-adaptive tax forms, allowing taxpayers to access 67 forms on their cellphones and tablets with save-and-draft capabilities.

For the 2025 filing season, the IRS expects to maintain efficient service levels, with wait times of less than 5 minutes for assistance. Most tax refunds will be issued within 21 days, and taxpayers can check their refund status through the “Where’s My Refund?” tool within 24 hours of electronic filing.

The modernization efforts extend to customer service with the introduction of voicebot services in both English and Spanish. The agency has also redesigned 284 notices in 2024, exceeding its goal of 200 notices, with an additional 84 redesigned notices scheduled for deployment in 2025.

However, these improvements face potential challenges. The agency’s funding situation remains uncertain amid political transitions. Republicans have expressed intentions to rescind much of the IRS’s long-term funding, which was provided through the Inflation Reduction Act. Additionally, there are discussions about leadership changes, with former Missouri Rep. Billy Long being tapped as the potential new commissioner.

Despite these challenges, the IRS continues to expand its outreach efforts. The agency plans to offer 10,000 extended office hours and increase its rural outreach program by 20%. There’s also a renewed focus on raising awareness about the Earned Income Tax Credit, as nearly one in five eligible taxpayers currently don’t claim it due to lack of awareness.

The Free File program, which opened on January 10, provides access to free software tools for taxpayers with an adjusted gross income of $84,000 or less in 2024. This early access allows eligible taxpayers to prepare their returns before the official filing season begins.

As tax season approaches, the IRS emphasizes the importance of protecting against tax scams, warning that fraudulent activities typically increase during filing season. The agency has implemented expanded alerts for scams and schemes, adding a new banner on the Online Account homepage to help educate taxpayers about common fraudulent attempts.