IRS

As of 2025, the Internal Revenue Service (IRS) workforce was reported to be about 75,000 employees, representing a decline of approximately 25% from about 100,000 employees two years earlier.

A federal tax-filing extension does not extend the deadline to pay taxes owed; federal income tax payments remain due by the regular April 15 deadline.

The Internal Revenue Service provides a deduction that workers may claim for cash tips and qualified overtime income for tax year 2025.

IRS Notice 2025-69 clarifies methods for determining the amount of the deduction for cash tips or qualified overtime on tax returns when a worker did not receive a separate accounting from their employer for tax year 2025.

The Internal Revenue Service is updating income tax forms and instructions for tax year 2025 to assist taxpayers in claiming deductions for tips and qualified overtime.

In a typical year, about 20 million Americans (roughly 13% of all taxpayers) request an IRS tax-filing extension.

An IRS tax-filing extension is provided automatically upon request and grants taxpayers an additional six months to prepare and file their federal income tax returns.

The IRS charges a failure-to-file penalty equal to 5% of the unpaid tax for each month or part of a month a return is late, up to a maximum of 25%, and may waive the penalty if the taxpayer provides a reasonable explanation.