The layoffs, which have been directed by the so-called Department of Government Efficiency (DOGE), led by billionaire and "special government employee" Elon Musk, have sparked concerns among experts who fear that the IRS won't be able to process Americans' tax refunds as quickly as usual this year.

In 2025, the IRS has issued over $124 billion in tax refunds, marking an 8.1% increase from the previous year. This surge in refunds comes despite fewer tax returns being filed, attributed to inflation adjustments and new deductions.

The IRS has issued more than 29.6 million individual income tax refunds through Feb. 21, up 2.3% from a year ago.

The Trump administration’s changes to the federal government could alter the tax filing process for this year’s reporting period and beyond. Reports indicate the Department of Government Efficiency has taken a long look at the IRS,

Understanding the timing of your IRS tax refund can significantly impact your financial planning. By submitting your tax return promptly and utilizing electronic filing, you can expedite the process and receive your refund sooner.

The IRS estimates that more than 1.1 million taxpayers might have qualified for a refund in 2021 but did not file a federal income tax return to claim it.

The IRS said the average refund amount has increased by 7.5% this year, going from $3,213 in 2024 to $3,453 so far in 2025. The average direct deposit refund was also up by 7.1% from last year – at an average of $3,505. The IRS began accepting tax returns on January 27, 2025.

The median potential refund nationwide is $781 for 2021. Florida, with 69,800 individuals who did not file, is just below the median potential refund at $721. New Yorkers — 73,000 of them — left the most money in the IRS till: $995.

As the April 15 filing deadline looms, the Internal Revenue Service reminds taxpayers that after three years, any unclaimed 2021 tax year refunds go to the U.S. Treasury.

If you've already filed your tax return, it's natural to wonder when you'll receive your refund. One of the most common questions is the exact time the IRS makes deposits.