The Internal Revenue Service (IRS) will begin accepting and processing tax returns for the 2025 financial year from 26 January 2026, marking the official start of the annual filing season. The deadline for most taxpayers remains 15 April.
Staffing Crisis and Legislative Overhaul Threaten Smooth Processing
Tax experts and the IRS's own independent watchdog are raising alarms that this year's filing period could be severely hampered. A primary concern is a dramatic reduction in the agency's workforce, which has fallen from 102,113 employees at the end of the Biden administration to just 75,702, according to the National Taxpayer Advocate's June report to Congress.
This 26% staff cut resulted from planned layoffs and buyouts initiated by Elon Musk's Department of Government Efficiency. Notably, employees involved in last year's tax season were barred from accepting buyout offers until after the 15 April 2025 filing deadline had passed.
New Tax Laws Add Complexity for 2025 Returns
Compounding the staffing challenge, the IRS must implement major provisions from a Republican tax and spending package signed into law last summer. Several provisions apply retroactively to the 2025 tax year, a move that is likely to confuse many filers and force the agency to issue last-minute updates to tax forms and guidance.
"With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season," warned Erin M. Collins, who leads the National Taxpayer Advocate organisation.
Agency Confidence Amidst Widespread Concern
Despite the warnings, acting IRS Commissioner Scott Bessent struck an optimistic tone. "President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025," he said in a statement. "I am confident in our ability to deliver results and drive growth for businesses and consumers alike."
The IRS anticipates receiving roughly 164 million individual income tax returns this season, a volume consistent with the previous year. Given the potential for delays and complications, tax professionals are strongly advising Americans to begin their preparations early and file as soon as they are able after the 26 January start date.
