The April 15 tax-filing deadline is three weeks away, and tens of millions of taxpayers have yet to file their taxes.
The Internal Revenue Service had received nearly 70.4 million returns as of March 14, down 1.7% from the same period last year. It had processed 69.6 million returns, meaning the computers are chugging along.
Some tax professionals had worried that layoffs at the agency could gum up tax season, even though the cuts were primarily in the compliance division. But the processed returns figures show that isn’t the case, so far, and taxpayers with filing-season questions are getting answers.
“The IRS is answering the phones,” said Jim Buttonow, a certified public accountant in Summerfield, N.C.
And refunds are going out. Some filers are seeing refunds hit their bank accounts in less than a week after they file, tax professionals said.
So far, those refunds are bigger than last year. The average so far in 2025 has been $3,271, up 5% over the same period last year, according to the March 14 IRS data, the latest available. Early filers tend to get refunds, so that amount is likely to fall as more people file returns.
The slightly lower number of filed returns versus last year means more than half of Americans had yet to send in their taxes as of mid-March. One reason many might be holding off: Millions of people live in disaster areas with later due dates for their 2024 taxes.
Taxpayers in Los Angeles County, devastated earlier this year by wildfires, have until Oct. 15 to file and pay their taxes. Taxpayers in five states—Alabama, Florida, Georgia, North Carolina and South Carolina—and parts of four others—Alaska, New Mexico, Tennessee and Virginia—have until May 1. Taxpayers in all of Kentucky and parts of West Virginia have until Nov. 3 to file and pay.
For most Americans, those who don’t live in federally declared disaster areas, the due date to file a return or request an extension is April 15. Taxpayers who can’t get their return filed by tax day should at least file an extension, which puts the deadline off until Oct. 15.
A big caveat: Such an extension applies to the filing time. It isn’t an extension to pay. Payments are due by April 15 even if the return itself won’t be filed until later in the year.
For those who owe taxes, failing to file and pay on time means stiff penalties that add up quickly.
There are lots of reasons that drive taxpayers to seek extensions, not just procrastination.
Complexity is hitting more people at younger ages, said Andy Phillips, who heads the Tax Institute at H&R Block. Tax-reporting rules for digital assets are evolving, for example.
As more people take on gig work, they have to navigate paying self-employment taxes, making estimated payments and reporting business income and expenses. These workers will often have a balance due, instead of getting a refund, and put off the pain of filing until the last minute. People need to remember that even if you file in March, you still have until April 15 to pay your bill, Phillips said.
More taxpayers are also reporting income from a partnership or business that gets passed through to their individual returns, according to the IRS, and many of them file an extension. They have to wait for K-1 reporting forms.
Any information document, such as a W-2 reporting wages, a K-1 or a 1099 reporting other income, goes to the taxpayer and the IRS. The IRS computers will catch missing documents and mail out notices to taxpayers who fail to file or underreport income.
Meanwhile, some tax professionals said their clients are asking about taking more aggressive positions on their returns, in light of the IRS compliance layoffs. The agency is retreating from some audits, but reassigning auditors on others, and automated collection notices continue to go out.
“Don’t get yourself in trouble. The rules still apply,” said Phillips.
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THE WALL STREET JOURNAL
