Internal Revenue Service (IRS)

The average median refund is $932 for 2020. Texas (93,400), California (88,200), Florida (53,200) and New York (51,400) have the largest amount of people potentially eligible for these refunds.

Commissioner Danny Werfel says the IRS is seeing "very powerful early results" in its efforts to improve enforcement on high wealth is paying off.

Refunds are expected to be up on last year and a new system being trialed in 14 states will allow taxpayers to file their 2023 federal tax return online, for free, directly with the IRS.

Direct File will be open only to people with certain tax situations living in certain states at the outset. The free service has been criticized by Republicans and tax preparation companies.

A nonprofit that supports defendants charged in the Jan. 6, 2021 insurrection is facing scrutiny over its political activity. "The IRS should investigate this case immediately," said one congressman.

Democrats want Israel and Ukraine funding to be linked together. House Republicans are proposing a standalone bill with roughly $14 billion for Israel offset with cuts to the Internal Revenue Service.

The agency said instead it will send letters to certain taxpayers to set up face-to-face meetings.

Findings from an internal investigation come after researchers said the IRS was at least three times more likely to audit Black taxpayers than other racial groups.

The IRS is working to develop its own free electronic tax-filing system in a potential challenge to commercial products such as TurboTax. The agency plans a pilot test of the program next year.

A week after telling payment recipients to delay filing returns, the agency won't challenge the taxability of payments related to general welfare and disaster.