IRS Releases 2025 Data Book Highlighting Tax Relief and Revenue Collection
The Internal Revenue Service (IRS) has published its 2025 Data Book, detailing its operations and achievements during the fiscal year. The report highlights the implementation of the Working Families Tax Cuts Act, which introduced new tax deductions for tips, overtime, car loan interest, and senior citizens. Approximately 45% of individual tax returns filed in 2026 claimed these deductions, with an average refund of over $3,200. The IRS processed 271.4 million federal tax returns, collecting over $5.3 trillion in tax revenue. Despite budget and personnel cutbacks, the IRS managed to close 145,202 applications for tax-exempt status, approving 88.6% of them. The agency also conducted 497,621 tax audits, resulting in $26.8 billion in recommended additional tax. The IRS has increasingly relied on automation to detect noncompliance, closing nearly 1.6 million cases through automated programs. 
