The IRS has issued more than 29.6 million individual income tax refunds through Feb. 21, up 2.3% from a year ago.

The Trump administration’s changes to the federal government could alter the tax filing process for this year’s reporting period and beyond. Reports indicate the Department of Government Efficiency has taken a long look at the IRS,

More than a million American taxpayers could be leaving cash on the table as the deadline to claim tax refunds from three years ago is fast approaching. The Internal Revenue Service (IRS) has issued a warning that more than a million taxpayers are still eligible to receive a share of more than $1 billion in refunds—but they need to act quickly.

The IRS said the average refund amount has increased by 7.5% this year, going from $3,213 in 2024 to $3,453 so far in 2025. The average direct deposit refund was also up by 7.1% from last year – at an average of $3,505. The IRS began accepting tax returns on January 27, 2025.

The IRS is warning that $1 billion in unclaimed 2021 tax refunds remain because about 1 million taxpayers haven't filed tax return for that tax year as an April 15 deadline looms.

The IRS warns that an estimated $1 billion in tax refunds from the 2021 tax year may become the property of the U.S. Treasury if over 1.1 million Americans do not file their tax returns by April 15, 2025.