To File, or Not to File; That is The 2025 Tax Season Question

2025 Tax Season

March 06, 2025 – As the 2025 tax filing season kicks into high gear, American taxpayers find themselves grappling with an age-old question: to file, or not to file? This year, however, the decision feels more complex than ever, with a whirlwind of changes under the new administration, ambitious government efficiency reforms, and bold proposals to dismantle the Internal Revenue Service (IRS) entirely. From layoffs and budget cuts at the IRS to the influence of the Department of Government Efficiency (DOGE), the tax landscape is anything but business as usual.

A New Administration Shakes Things Up

Since President Donald Trump began his second term on January 20, 2025, the federal government has been a flurry of executive actions and policy shifts. The IRS, long a cornerstone of tax collection, is facing unprecedented upheaval. Former IRS Commissioner Charles Rettig stepped down, and Trump’s nominee, former Rep. Billy Long, awaits confirmation as the agency’s new leader. Meanwhile, an indefinite hiring freeze and the reinstatement of “Schedule F”—a policy reclassifying certain federal workers—have left the IRS scrambling to maintain operations.

Perhaps most striking is the $20 billion cut to the IRS’s special funding, a move that reverses years of modernization efforts fueled by the Biden-era Inflation Reduction Act. Taxpayers who relied on improved online tools, expanded customer service, and faster refund processing may now face delays and uncertainty. “The IRS is in turmoil,” says tax analyst Laura Simmons. “With fewer staff and slashed resources, it’s unclear how effectively they can enforce compliance this year.”

DOGE Steps In: Efficiency or Chaos?

Enter the Department of Government Efficiency (DOGE), a new initiative championed by the administration to streamline federal operations. Led by high-profile figures rumored to include Elon Musk and Vivek Ramaswamy, DOGE has been tasked with cutting waste and rethinking how government functions—including tax collection. Posts on X reflect growing public curiosity about DOGE’s role, with some users joking, “If DOGE gets access to my tax data, will they send me a Tesla refund?”

While DOGE’s mission is still taking shape, its early actions suggest a focus on reducing bureaucratic bloat. For the IRS, this could mean outsourcing tasks, digitizing more processes, or even shifting responsibilities to a proposed “External Revenue Service” (ERS) focused on tariffs rather than income taxes. However, skeptics warn that such sweeping changes mid-tax season could sow confusion, leaving taxpayers wondering whether filing is worth the hassle.

Abolishing the IRS: A Pipe Dream or Imminent Reality?

The most radical proposal on the table is the outright abolition of the IRS, a longtime talking point among certain conservative circles that’s gained fresh traction under the new administration. Advocates argue that replacing income taxes with a national sales tax or tariff-based system would simplify revenue collection and eliminate the need for an agency many view as intrusive. “Why file when they might scrap the whole system by next year?” one X user mused, echoing a sentiment rippling across social media.

Yet, experts caution that dismantling the IRS is easier said than done. “The IRS processes over 140 million returns annually,” notes tax policy expert Michael Graetz. “You can’t flip a switch and replace that overnight without massive disruption.” Even if abolition talks gain momentum, any transition would likely take years, meaning taxpayers are still on the hook for 2024 returns due by April 15, 2025.

To File or Not to File?

So, should you file your taxes this year? The practical answer, for now, is yes. Despite the chaos, the IRS remains operational, and failing to file could trigger penalties or audits—however understaffed the agency may be. The standard deduction has risen to $15,000 for single filers and $30,000 for married couples filing jointly, and inflation-adjusted tax brackets offer some relief. Programs like Direct File, now permanent in 24 states, provide a free filing option for over 30 million eligible taxpayers, though its scope may shrink amid budget cuts.

Still, the uncertainty is palpable. Posts on X highlight a mix of defiance and apathy, with one user asking, “Who’s gonna notice if we skip this year?” The reality is that while the IRS’s enforcement capacity is strained, it’s not nonexistent. “They’re down, but not out,” Simmons says. “Automated systems can still flag non-filers.”

What’s Next?

As DOGE’s reforms unfold and debates over the IRS’s fate intensify, taxpayers are left navigating a maze of speculation and half-formed policies. Congress could act later this year on expiring Tax Cuts and Jobs Act provisions, potentially altering credits like the Child Tax Credit for future years. For now, though, the deadline looms, and the question remains: to file, or not to file? In 2025, that choice feels less like a formality and more like a gamble on an uncertain future. Click here to get started e-filing your 2025 Taxes