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As the tax deadline approaches on April 15, the Internal Revenue Service (IRS) reports that most of the tax returns filed to date have resulted in a refund. Of those receiving refunds, approximately 80% have been issued within 21 days. As of March 27, approximately 88 million returns have been filed and 63 million refunds have been issued via direct deposit, with an average refund of $3,571.
IRS CEO Frank Bisignano stated, "Tens of millions of Americans are getting their refunds direct deposited in their bank accounts and their returns processed promptly without error or delay."
The number of returns and refunds is down approximately 1% this year. Tom O’Saben is the Director of Tax Content and Government Relations for the National Association of Tax Professionals. O’Saben suggested there are fewer returns being filed because there is "a lack of understanding or guidance" on the One Big Beautiful Bill Act (OBBBA). The confusion is particularly focused on the new deductions for tips and overtime wages. O’Saben noted he had a client who thought that the overtime benefit was a tax credit and not a tax deduction. Taxpayers frequently confuse deductions and credits. The overtime and tip benefits are both tax deductions.
National Taxpayer Advocate Erin Collins observed that there have been large cuts in the number of IRS employees. Collins believes these cuts may impact both customer service and the ability of the IRS to review tax returns. Collins stated, "Effective compliance is not limited to audits and enforced collection; it also requires high-quality customer service, collaborative problem-solving, and the ability to reach fair resolutions without creating hardship.”
The IRS also reminds last-minute tax filers about the helpful tools and resources on IRS.gov. The IRS Free File program is available for qualified taxpayers. There are also information sections on OBBBA deductions for tips and overtime on IRS.gov. Other helpful tools include the Interactive Tax Assistant that can answer taxpayer questions and Publication 17, Your Federal Income Tax to explain the new tax provisions.
Taxpayers who cannot complete their filing by April 15 should pay their estimated taxes owed and extend their filing date to October 15, 2026. Anyone can use IRS Free File to request an extension.
There are some taxpayers who may benefit from an automatic extension. For instance, military members serving in combat zones may file and pay any taxes owed within 180 days after they leave a combat zone. In addition, taxpayers who live in a federally declared disaster area may have a delayed filing date.
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