As of February 7, the Internal Revenue Service (IRS) had received 7.7% fewer returns than the same period last year.
Although the IRS expected filing numbers to eventually balance out, visits to its website fell 40% from the same period last year.
Elon Musk’s Department of Government Efficiency (DOGE) reportedly paid a visit to the IRS in February to review agency operations.
“If your refund is delayed, they could very well be the reason,” Senator Ron Wyden (D-OR) wrote on X.
Over the last ten years, electronic filing has transformed the tax landscape.
Over 90% of people now file online, which simplifies the process.
Nonetheless, more than $7 billion in tax credits and deductions go unclaimed every year.
The average refund increased by 18.6% to $2,065 from $1,741 in the same period last year.
Last year’s average refund for all of 2024 was approximately $3,138, compared to $3,167 in 2023.
That figure is nearly 30% lower than the inflation-adjusted average from a decade ago.
According to the IRS, the agency received 101,422,000 total returns this year, representing a 0.4% decrease from 2024.
However, the total amount refunded increased by 5% to $211.080 billion in 2025.
Those waiting for a tax refund can check their status using the IRS’s “Where’s My Refund” tool.
“If you receive a large tax refund, what you’ve essentially done is given the government a loan over the last year that you didn’t have to give them, and you’ve done that interest-free,” Johns Hopkins accounting professor Jordan Rippy told Fortune.
Rippy acknowledged that many Americans treat refunds as savings, using them to pay down debt, renovate their homes, or travel.
“There is no real danger in it,” she stated.
“It’s just that sort of foregone opportunity to have used those dollars last year sometime to invest on the upside – you might have invested those dollars and generated a real return.”
This makes tax season an excellent reminder to review your finances.
“At the start of every month, I have a little alert on my calendar that says, ‘Go change the air filter in my house, like my HVAC,” said Rippy.
“Tax season is like that blinking red light.”
Staying aware of tax implications throughout the year can help you avoid surprises and keep your finances under control.
