IRS Mid-Season Processing Shows Higher 2025 Tax Refunds
A new mid-season processing update for 2025 tax returns shows federal tax refunds increasing while filing activity remains slightly behind last year’s pace. The Internal Revenue Service released updated filing season statistics during the 2025 filing season to show how many income tax returns have been processed and how quickly refunds are moving through IRS technology systems. The update offers an early look at the tax-return filing season as millions of taxpayers submit Forms 1040 before the April 15, 2026, deadline.
The Internal Revenue Service publishes weekly filing season statistics to track how millions of tax returns move through the federal tax system. These reports show how many income tax returns have been received, processed, and refunded during the tax filing season.
Early data show the number of tax returns submitted running slightly below last year’s pace. During the opening weeks of the 2025 filing season, the IRS processed roughly 20.6 million individual tax returns as taxpayers filed Form 1040 through electronic filing systems and tax software companies.
Refund amounts have increased compared with the previous filing season. IRS data shows the average federal tax refund reached $3,804 by late February 2026, about 10.2 percent higher than the $3,453 average refund during the same period last year.
For most taxpayers, the Internal Revenue Service continues to follow its standard processing schedule. Electronically filed tax returns with direct deposit are generally processed within 21 days after the IRS accepts the e-filed tax return.
Refund status usually becomes available within 24 hours through the Where’s My Refund? tracking tool. Taxpayers can also check for updates through the IRS's digital services.
Paper-filed tax returns require manual processing because IRS staff must enter the information into agency technology systems. As a result, paper returns typically take six to eight weeks to process and can contribute to a processing backlog.
Electronic filing remains the dominant method used during the tax filing season. During the previous filing season, approximately 94 percent of income tax returns were submitted electronically through the E-File Service, Free File partners, or tax software companies.
Direct deposit also speeds payment delivery because refunds move electronically through the banking system rather than through mailed paper returns. The Treasury Department encourages taxpayers to use electronic payment tools such as IRS Direct Pay when making estimated tax payments or settling remaining tax liability.
Digital services such as Direct File and IRS online accounts are part of the agency’s broader effort to modernize taxpayer service. Programs supported by Business Systems Modernization and updated Information Technology systems aim to reduce manual processing during future filing seasons.
Some taxpayers must wait longer for refunds because of federal tax legislation. The Protecting Americans from Tax Hikes (PATH) Act requires the IRS to delay refunds for taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February.
Congress created the rule to allow additional verification of employer wage data and prevent fraudulent refund claims. These safeguards became more important after identity theft and refund fraud increased following the COVID-19 pandemic.
Taxpayers who file early and claim these credits generally begin receiving refunds in early March. The IRS states that the refund status for these filers typically updates in the Where’s My Refund? tool once the review period ends.
Although most refunds are processed within 3 weeks, certain issues can delay processing. The IRS says tax returns may take longer when they contain errors, missing information, or income figures that do not match employer records.
These discrepancies can trigger manual processing or additional review within IRS technology systems. Processing delays can also occur when taxpayers submit amended returns or paper-filed tax returns that require manual verification.
Identity theft screening also remains a critical part of IRS review procedures. When a return is flagged for possible identity theft, the agency may require taxpayers to verify their identity before releasing a tax refund.
The Taxpayer Advocate Service and the Office of the Taxpayer Advocate monitor problems affecting taxpayers during the tax filing season. National Taxpayer Advocate Erin M. Collins has repeatedly warned that identity theft victims and taxpayers facing correspondence processing delays often wait longer for resolution.
In reports such as the Fiscal Year 2026 Objectives Report, the National Taxpayer Advocate emphasized the need for improved case management systems, better information technology, and stronger taxpayer service operations. These improvements are designed to support taxpayer rights and improve the overall taxpayer experience.
The Taxpayer Advocate Service also works directly with taxpayers experiencing significant problems with IRS processing delays. Its mission includes helping taxpayers resolve issues involving refund delays, identity theft cases, or taxpayer account issues that require additional review.
Taxpayers waiting for their refund can track progress using official IRS tools. The "Where’s My Refund?" tool on IRS.gov and the IRS2Go mobile app allow taxpayers to check refund status at any time during the tax season.
These systems show whether a return has been received, approved, or sent for payment. Many taxpayers can see updates within 24 hours after IRS processing systems accept an e-filed tax return.
The Internal Revenue Service advises taxpayers to wait before contacting telephone call centers or customer service. In most cases, taxpayers should wait 21 days after electronic filing or six weeks after mailing paper returns before calling.
Tax experts say taxpayers can reduce the risk of refund delays by carefully preparing their tax returns. Verifying income, adjusted gross income, filing status, and Social Security numbers helps ensure the return matches employer records stored in IRS systems.
Electronic filing combined with direct deposit remains the fastest way to receive a tax refund. This method eliminates mailing delays and allows payments to move quickly through the banking system.
Filing early during the tax season can also help protect taxpayers from identity theft. Submitting a legitimate return first prevents criminals from filing fraudulent returns using stolen taxpayer information.
Sources
By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now
© 2026 Get Tax Relief Now™. All rights reserved.
