As Americans begin filing their 2025 tax returns this month, the Internal Revenue Service is advising early preparation and use of digital tools to navigate one of the most significant tax seasons in years. Following the passage of the One, Big, Beautiful Bill (OBBB) last July, numerous credits and deductions have been modified (some retroactively) adding both opportunities and complications to the filing process.
According to a statement released by the IRS, the agency is prioritizing accuracy and urging filers to verify sensitive information such as Social Security numbers and dependent details before submission. With refund delays possible and new benefits available, the agency stressed that careful preparation and electronic filing will be key.
Refund Timing, Filing Guidance and Changes to Standard Processing
The IRS has confirmed that most early filers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) can expect refunds by March 2, 2026? provided they e-file, opt for direct deposit, and file complete and accurate returns that do not trigger additional review. Taxpayers will be able to check their refund status via the Where’s My Refund? tool starting February 21.
Direct deposit remains the fastest method for receiving refunds. According to IRS guidance, mailed paper checks may take six weeks or more. As part of a broader modernization effort, the agency is phasing out paper refund checks and continuing to push filers toward electronic services. This includes encouraging the use of the IRS Individual Online Account, where taxpayers can review return history, manage payments, and access notices.
A significant factor this year is the introduction of expanded and retroactive benefits through the OBBB, signed into law as Public Law 119-21. These include eligibility changes for the Child Tax Credit, the Adoption Credit, and various education-related benefits. According to Newsweek, the law also expanded Health Savings Account (HSA) eligibility and made certain health plans HSA-compatible beginning in 2026.
In addition, taxpayers over 65 may now claim a new $6,000 deduction, while others may deduct tip income, overtime wages, and interest on new auto loans? provided complex requirements are met. The IRS has advised families to double-check eligibility for each provision, particularly for deductions subject to income thresholds and phaseouts.
IRS Faces Internal Challenges amid Increased Complexity
While the IRS expects the majority of returns to be processed smoothly, the National Taxpayer Advocate has cautioned that 2026 may present serious obstacles for filers who encounter problems. According to the Advocate’s 2025 Annual Report to Congress, the agency has seen a 27% reduction in workforce over the past year, with staffing cuts affecting nearly all divisions. Telephone support, correspondence processing, and case resolution capacity have all been impacted.
The report warns that retroactive implementation of more than 100 tax code changes under the OBBB will increase the risk of confusion and processing delays. Erin M. Collins, the National Taxpayer Advocate, noted that while many of the new provisions are taxpayer-favorable, they come with intricate eligibility rules and reporting requirements. “The success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems,” she wrote.
Another concern involves the IRS’s new “Zero Paper Initiative,” which aims to digitize paper return processing through private contractors using scanning technology. Although the goal is to accelerate processing, the Advocate’s report cautions that such outsourcing may introduce confidentiality risks, citing a past case involving a contractor’s leak of taxpayer data.
According to the IRS, roughly 165 million returns were processed in 2025, with 94% filed electronically. This year, the IRS urges even more taxpayers to take advantage of digital tools to minimize delays, especially as refund checks may take longer to issue and amended returns still average five months or more for processing.
