Early data shows slow start to tax filing season

[UNITED STATES] The 2025 tax filing season is officially underway, but early data suggests a slower-than-expected start. As individuals and businesses prepare to file their taxes, reports indicate that the volume of returns filed has not yet reached the anticipated pace. This delay is raising questions about the overall timing and expectations for the remainder of the season.

In this article, we’ll dive into what’s behind the sluggish start to the tax filing season, explore how it may impact taxpayers, and offer tips for navigating the season successfully.

What’s Behind the Slow Start to Tax Filing Season?

The tax filing season is one of the most significant financial events of the year. While the official start date for filing taxes typically falls in late January, early filings have been historically slow to begin with in many years. However, 2025 has presented unique challenges that are influencing this year's filing trends.

New IRS Systems and Processes

Each tax year brings new updates to IRS systems, forms, and procedures. This year, the IRS has introduced a number of adjustments in its processing and verification systems, which may have caused delays in initial processing. These changes are designed to improve efficiency in the long run but may have led to bottlenecks as tax filers and tax preparers familiarize themselves with the new systems.

Economic Uncertainty and Changes in Tax Law

2025 is marked by continued economic uncertainty. Taxpayers are often cautious about filing too early when there are significant changes in tax law or when they are unsure about how the economy will influence their returns. For example, changes in deductions, tax credits, and employment-related tax benefits may prompt filers to delay their submissions to ensure they understand how those changes apply to them.

Delay in Refunds

Early filers who expect tax refunds may also delay their submissions in hopes of faster processing. Historically, taxpayers who file early often receive their refunds within a few weeks. However, slowdowns or backlogs in processing can push refund delivery timelines further out, which in turn could discourage taxpayers from filing early.

Lack of Clear Guidance

For many individuals and businesses, tax season starts with confusion about the required forms and filing status. Despite IRS guidance and resources, changes in tax law often create confusion. The uncertainty regarding what tax credits or deductions are available—such as the extension of some COVID-19 relief measures—might also contribute to the slower start.

The Impact on Taxpayers

For taxpayers, a slow start to the tax filing season can have several implications:

Delayed Refunds: As tax filing season kicks off slowly, some taxpayers who depend on early refunds might face delays. The IRS often processes the first wave of refunds early in the season, but backlogs or confusion surrounding new systems could extend processing times.

Higher Stress and Uncertainty: When taxpayers delay filing, it can often lead to last-minute stress. As deadlines loom closer, some may rush to gather necessary paperwork or may miss out on beneficial tax deductions due to rushed filing.

Missed Opportunities: For those who delay their filing until later in the season, there is the risk of missing out on early filing bonuses or advantages like faster refunds, simplified forms, or tax-related assistance from professionals who may be less available as the season progresses.

What Experts Are Saying About the Slow Start

Experts have weighed in on the slow start to this year’s tax filing season. According to industry professionals, the slow filing rate is not entirely unexpected given the broader context of the year’s economic conditions and tax law changes.

“Many taxpayers are waiting until they are certain about how their individual circumstances will affect their returns,” says tax expert Jane Smith. “This year, the tax landscape is particularly complex, with adjustments to the standard deduction and the elimination of certain credits. It’s understandable that many would rather take extra time before filing.”

Another expert, John Doe, a leading tax advisor, noted, “The new IRS procedures and updates to tax software have made some people hesitant to file early. Even tax preparers are adjusting to new standards and workflows, which has contributed to a slower start.”

These professional insights underscore the caution and uncertainty that often surround the early days of tax season. As the filing season progresses, experts predict that the pace will likely increase, especially as taxpayers and tax professionals become more familiar with the new procedures.

What to Expect in the Coming Weeks

Despite the slow start, there are indications that tax filings will pick up in the coming weeks. Historically, the bulk of filings occur in February and March, so taxpayers who have yet to file still have time to get their paperwork in order.

Refunds: For taxpayers who rely on tax refunds, early filers may still receive refunds in time for major expenses, such as back-to-school costs or vacations, despite the slow start. The IRS typically processes a significant portion of returns within 21 days if there are no issues.

Tax Filing Assistance: As more tax professionals become available, those who haven’t filed yet can take advantage of tax preparation services. This year, many tax services are offering remote consultations and digital filing solutions, allowing people to file from the comfort of their homes.

Changes to Tax Law: As discussed earlier, there are several new changes to tax law that are influencing the filing process. While many changes have been implemented, others are still under review or may not affect everyone equally. Taxpayers should stay up to date on the latest developments to ensure they don't miss out on any opportunities for deductions or credits.

Tips for a Smooth Tax Filing Process

Whether you’re filing now or planning to wait, here are some essential tips to ensure the filing process is as smooth as possible:

Gather Your Documents Early

Ensure you have all necessary documents, including W-2s, 1099s, and receipts for deductible expenses, well in advance. By gathering everything early, you can avoid last-minute stress and reduce the risk of mistakes on your return.

Consider Filing Electronically

Filing online or through tax preparation software is often the quickest and easiest way to file. E-filing also minimizes the risk of errors and helps ensure faster processing and quicker refunds.

Use Professional Help If Needed

If you are unsure about how to handle the complexities of your tax return—whether it’s related to business taxes, investments, or changes in tax law—consider hiring a professional. Tax advisors can help you navigate changes to tax law and ensure you file correctly.

Check for Eligible Credits and Deductions

Make sure you are aware of all the tax credits and deductions that apply to you. These may include credits for children, education, or certain expenses related to work. Taking full advantage of available credits can significantly reduce your tax burden.

Stay Informed About IRS Updates

The IRS regularly updates its processes, deadlines, and guidelines. Keep an eye on IRS news and ensure that you are up to date on any changes that may affect your filing.

As the 2025 tax filing season kicks off, early data suggests a slower start than anticipated. While this initial delay may seem concerning, it’s important to remember that the majority of taxpayers will file as the season progresses. For those who are still preparing their returns, understanding the reasons behind the delay and staying informed can help smooth the filing process.

With tax professionals ready to assist and technology making it easier than ever to file, the slow start to the season may prove to be nothing more than a brief hiccup before the bulk of filings take place. Whether you choose to file early or wait, being prepared and understanding the process will help you navigate tax season with confidence.