E-filing tax returns shut down until January - Important 2025 filing dates

If I paper file now instead of waiting till January for e-filing to be available again, about how much longer will it take for my refund? Also, does the IRS charge interest on refunds that they're slow to process?

The current backlog for paper-filed returns is approximately 8-10 weeks longer than e-filed returns. So if you paper file now, you're looking at potentially waiting until March or April for processing, whereas if you wait to e-file in January, you might get your refund by mid-February. The IRS does pay interest on refunds that are issued more than 45 days after the filing deadline (or the date you filed, if later), but the interest rate is relatively low. Currently, it's about 7% annually, which equates to less than 0.6% per month. So while you will get some interest, it's generally not enough to make purposely delaying worthwhile.

How does taxr.ai handle state returns? I'm in California and our state system is a nightmare. Does it just do federal or does it help with state-specific issues too?

I'm suspicious of any tax AI tool. How can it possibly keep up with the constantly changing tax codes? Does it actually have real tax professionals reviewing the AI suggestions or is it just spitting out generic advice?

The tool handles both federal and state returns, including California. Actually, I found their California-specific guidance extremely helpful since it flagged some state credits I qualified for that are unique to California residents. They seem to keep their state tax information very up-to-date. Regarding changing tax codes, I had the same concern initially. From what I understand, they update their system constantly and have tax professionals who verify the information. The advice I received wasn't generic at all - it was tailored to my specific situation based on the documents I uploaded. The system picked up on some very specific details in my W-2 and 1099 forms that even I had overlooked.

How exactly does this work? Wouldn't the IRS need to verify my identity before discussing my tax info? How does having someone else call for me solve that problem?

This sounds like BS honestly. The IRS isn't going to talk to some random third party about your tax situation. They have strict privacy protocols. And why would I pay someone just to wait on hold? Seems like a waste of money when you can just keep calling for free.

The service doesn't actually talk to the IRS on your behalf at all. They simply navigate the phone tree and wait on hold, then when they detect an agent is about to pick up, they conference you in directly. You're the only one who speaks with the IRS, and you provide all your own verification information. It's basically just outsourcing the hold time. Regarding whether it's worth paying for, I guess it depends on how much you value your time. For me, after wasting dozens of hours trying to get through during this busy shutdown period when everyone's calling with questions, it was absolutely worth it. If you have unlimited time to sit on hold for 3+ hours repeatedly, then maybe it's not necessary for you.

The IRS hasn't announced the official opening date for the 2025 filing season yet, but based on previous years, it's typically around the third or fourth week of January. Last year it was January 23rd. They usually make the announcement in early January. Just remember that even if you file on the first day, some tax forms (like those for education credits) might not be processed until mid-February, which could delay your refund if your return includes those forms.

Thanks for the info! I don't have any education credits or anything complicated, just a standard return with some withholding that was way too high this year. Hoping to get that money back ASAP.

Actually, there's a pretty good reason. The IRS is working with extremely outdated technology infrastructure - some of their core systems still run on programming languages from the 1960s like COBOL. The annual shutdown isn't just routine maintenance - they're using this time to implement tax law changes for the upcoming year, update processing systems, and transition between tax years. It's essentially rebuilding large portions of the system each time. The National Taxpayer Advocate has consistently identified technology modernization as a critical need, but Congress hasn't provided sufficient funding to completely overhaul these legacy systems. The IRS finally received significant modernization funding in 2022, but these major infrastructure changes take years to implement.

Hey there! I'm pretty new to this community but wanted to chime in since I went through something similar last year. If you're expecting a refund and don't mind waiting a bit longer for your money, there's really no rush to paper file right now. The main downside is just that you'll be waiting longer to get your refund - paper filing could mean waiting until March/April versus e-filing in January and potentially getting it by February. Regarding state taxes, it varies by state. Most states don't follow the exact same shutdown schedule as the IRS, but some do close their e-filing systems around the same time for maintenance. Since you're dealing with two states, I'd recommend checking both of their tax department websites directly to see their specific schedules. Some states actually keep their systems open longer than the IRS does. One thing to consider with your move - make sure you understand the residency rules for both states. Sometimes there are specific forms or calculations needed when you've moved mid-year that could affect whether you owe or get refunds from each state. Might be worth consulting with a tax pro given the complexity of your situation!

Great question about penalties vs. processing time! If you're already facing penalties, you'll want to file as soon as possible regardless of method. The failure-to-file penalty keeps accumulating monthly (5% of unpaid taxes per month), so every day you delay costs more money. Even if paper filing means waiting longer for processing, getting that return submitted stops the failure-to-file penalty clock. The IRS does continue processing paper returns during the e-filing shutdown, but at a much slower pace since many staff members are reassigned to system maintenance tasks. So your return won't just sit there until January - it'll be in the queue, just moving very slowly. One strategy to consider: if your situation is complex or you're unsure about anything, you could prepare your return now with a tax professional and have them hold it for e-filing when the system reopens. This way you can get professional guidance during their less busy period, and you'll be ready to file immediately when e-filing resumes. Just make sure to communicate clearly about timing if you go this route! The key is stopping those penalties from accumulating further - the processing delay is frustrating but not as costly as ongoing penalty charges.

Great question about amended returns! Yes, you can absolutely file an amended return (Form 1040X) electronically once e-filing resumes, even if your original return was paper filed. The IRS allows electronic filing of amended returns regardless of how the original was filed. However, there's an important timing consideration - you generally need to wait until your original return has been fully processed before filing an amendment. With paper filing delays, this could mean waiting until March or April before you can submit your 1040X electronically. You're absolutely right about those penalties adding up quickly! I made the same mistake a few years ago and learned this lesson the hard way. The failure-to-file penalty really is brutal compared to the failure-to-pay penalty. Getting that return submitted, even via paper, stops the biggest penalty from growing. One tip from my experience: if you do end up needing to amend, keep detailed records of what you're correcting and why. The IRS tends to scrutinize amended returns more closely, especially when there are significant changes. But the good news is that electronic amended returns process much faster than paper ones - usually within 16 weeks versus 20+ weeks for paper 1040X forms. Good luck with getting your return submitted this week!

Good question about amended returns! Unfortunately, Form 1040X (amended returns) follows the same shutdown schedule as original returns. So if you're planning to e-file your amendment, you'd need to get it submitted through a tax preparer by next week before the system goes down. Regarding timing and fees - yes, tax preparers do typically see a rush right before the shutdown, though it's not quite as intense as the April deadline. Most preparers are aware that people suddenly realize they need to get things done before the two-month blackout period. I'd recommend calling around ASAP if you want to go this route, as appointments are definitely filling up. One thing to consider with your business expense amendment - if it's going to result in a significant refund, it might be worth pushing to get it done before the shutdown rather than waiting until January. The sooner you file, the sooner you'll get your money back. Plus, if there are any issues or questions from the IRS, you'll have more time to resolve them before next year's filing season gets crazy. That said, if your amendment is complex or you're not 100% confident in the calculations, it might be better to wait and work with a preparer when they're less rushed in January. Better to get it right than to rush and make errors that require further corrections!

Great question about the timing! Based on what Ella mentioned in the original post, the IRS e-filing system shuts down starting December 12th, which would be this coming Thursday. So you really only have a few days left to get an appointment with a tax professional if you want to e-file. Regarding rush fees, it varies by preparer, but many do charge extra during crunch periods like this. I've seen anywhere from $50-200 in additional fees for last-minute appointments during shutdown week. However, some preparers keep their standard rates to help people avoid the paper filing delays. One thing to consider - even if you can't get an appointment before Thursday, some tax pros will prepare your return now and hold it for e-filing when the system reopens in January. This could be a good middle ground where you get professional help without paying rush fees, and you'll be first in line when e-filing resumes. I'd recommend calling a few local preparers today to see what options they have available. Even if their appointment slots are full, they might be able to work something out given the tight deadline. The key is acting fast - every day you wait, those penalties keep accumulating if you owe money!

This is such great practical advice! I'm definitely one of those people scrambling right now. Your point about filing with incomplete information really helps - I've been stressing about waiting for one last 1099 that hasn't arrived yet, but it sounds like I should just go ahead and file with what I have rather than miss the e-filing deadline entirely. The penalty numbers you mentioned are eye-opening. $800 extra just for waiting a few weeks is no joke! I think I'm convinced to try to get an appointment with a tax pro this week, even if it means paying a rush fee. Better than letting those failure-to-file penalties keep piling up. Thanks for sharing your experience - sometimes hearing real numbers from someone who actually went through it is way more motivating than just reading about penalties in the abstract!