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flag IRS reports lower tax filings and smaller refunds amid expired pandemic breaks and inflation.

flag In the 2025 tax season, the IRS has seen a 5% drop in tax filings and a 32% decline in average refunds to $2,170, largely due to the expiration of pandemic-era tax breaks and inflation adjustments. flag Business owners are filing extensions due to complex forms and financials. flag The IRS faces longer wait times due to staffing cuts, which could worsen next year, potentially impacting the 2026 tax season.

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