According to Accounting Today, the IRS has published its 2025 Data Book, which covers staff cuts, new technology, and tax changes from the One Big Beautiful Bill Act. 

According to the report, about 45% of individual tax returns for the 2026 season included at least one new deduction, like tips, overtime, car loan interest, or senior deductions. By May 27, the average refund for these returns was over $3,200. 

“Fiscal year 2025 was a pivotal year, as we began the process of implementing tax relief for hardworking Americans enacted as part of the Working Families Tax Cuts Act,” IRS CEO Frank Bisignano said in a statement. 

In 2025, the IRS handled more than 271 million federal tax returns and related documents, including almost 163 million individual returns, and collected over $5.3 trillion in taxes. More people used digital tools, and the “Where’s My Refund?” feature got nearly 417 million inquiries, which is 9% more than last year. 

The report points out that the IRS is using more automation. The Automated Underreporter Program closed almost 987,500 cases and brought in $5.9 billion in extra assessments. The Automated Substitute for Return Program added nearly $2.9 billion. 

Even with these results, the IRS workforce dropped from 99,628 employees at the end of 2024 to 80,967 a year later. This shows the agency is handling more work with fewer people.