The IRS has released updated data showing that the average tax refund for the 2025 filing season rose by 3.3% compared to 2024 — up to $2,945 from last year’s $2,852. This increase, largely driven by inflation-related adjustments to deductions and tax brackets, is welcome news for millions of taxpayers.
But behind the headline lies a more complex story: even as refunds rise, the IRS continues to face internal operational challenges that could affect future service levels and turnaround times.
Several factors contributed to the rise in average refunds:
Despite positive refund numbers, the IRS is under pressure. Recent reports indicate:
Tax professionals have noted longer wait times for account resolution and delays in paper return processing, especially for amended returns or identity verification cases.
Electronic filers using direct deposit continue to see refunds issued within 21 days, but that window is growing more fragile as workloads increase.
Paper returns, especially with attachments or complex elections, are more likely to face delays. Encourage clients to file electronically whenever possible.
With staffing shortfalls, the IRS is triaging its call center availability. Clients with basic issues may have trouble reaching a representative.
While higher refunds are good news for U.S. households, the IRS’s internal constraints may challenge the consistency of that experience in future years. As modernization efforts stall and workforce gaps widen, practitioners should prepare clients for possible delays, documentation requests, and more reliance on self-service portals.
At Bizora AI, we continue to track IRS trends and help CPA firms streamline research, return reviews, and client communications — so you can stay focused even when the IRS isn’t.