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Policy & Law

IRS Chief Testifies on Tax Filing Season Amid New Deductions, Higher Refunds

More than 53 million filers claimed new tax breaks from the Republican tax law, while Democrats raised concerns about IRS sharing taxpayer data with ICE.

⚡ The Bottom Line

The 2026 tax filing season represents the first major test of the Republican tax law's new provisions, with tens of millions of Americans utilizing the new deductions. The administration points to higher refunds as evidence of success, while polling suggests public sentiment on taxes remains skeptical. Bisignano's testimony offered the IRS an opportunity to defend its implementation of the new ...

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April 15 marks Tax Day, the deadline for most Americans to file their federal income tax returns. IRS CEO Frank Bisignano testified before the Senate Finance Committee as the 2026 filing season draws to a close.

The hearing comes amid the first tax filing season under the Trump administration's Republican tax and spending law, which introduced several new breaks including no tax on tips, no tax on overtime, exemptions for interest on certain car loans, enhanced deductions for seniors, and Trump Accounts for children's savings.

What the Left Is Saying

Democratic lawmakers on the committee focused on what they called a significant civil liberties concern: the IRS's disclosure of confidential taxpayer information to Immigration and Customs Enforcement. The agency entered into an agreement with the Department of Homeland Security to share information for identifying and deporting people illegally in the U.S.

Senator Ron Wyden of Oregon, the ranking Democrat on the Senate Finance Committee, has called for investigations into the ICE data-sharing agreement. Progressive advocacy groups have expressed alarm that confidential tax information could be used for immigration enforcement, arguing it chills undocumented individuals from filing taxes or claiming legitimate refunds.

Democrats have also questioned whether the new tax breaks primarily benefit wealthier Americans rather than middle-class workers, despite administration projections that average returns would rise by at least $1,000.

What the Right Is Saying

Trump administration officials and Republican lawmakers have portrayed the 2026 filing season as a success. Treasury Secretary Scott Bessent has highlighted that tax refunds are up 24% compared with the four-year average before President Trump took office.

The White House has sought to promote Trump's tax cuts as a way to build voter enthusiasm ahead of November's midterm elections. Republicans argue the new deductions for tips, overtime, and seniors provide meaningful relief to working Americans.

In his testimony, Bisignano planned to tout the IRS's implementation of the Republican tax law, noting that more than 53 million filers claimed deductions under its provisions. The agency has also undergone significant workforce reductions through the Department of Government Efficiency, which the administration says has improved efficiency.

What the Numbers Show

The Treasury official said more than 53 million filers claimed a deduction under one of the new provisions: 6 million people claimed no tax on tips, 21 million claimed the overtime deduction, and 30 million older Americans claimed the enhanced senior deduction.

The average refund amount is $3,462, according to the latest IRS data, which represents an 11% increase or about $350 more than last tax year's average refund of $3,116.

Despite these increases, 7 in 10 Americans still think their taxes are too high, according to recent polling. The IRS has reduced its workforce by 27% over the past year through cuts brought on by the Department of Government Efficiency.

The White House originally projected average returns would rise by at least $1,000, though the actual average refund increase of $350 falls short of that projection.

The Bottom Line

The 2026 tax filing season represents the first major test of the Republican tax law's new provisions, with tens of millions of Americans utilizing the new deductions. The administration points to higher refunds as evidence of success, while polling suggests public sentiment on taxes remains skeptical.

Bisignano's testimony offered the IRS an opportunity to defend its implementation of the new law and address questions about data sharing with ICE. The hearing occurs as higher gas prices, linked to the war in Iran, have complicated the administration's economic messaging ahead of November's elections.

What to watch: Democratic lawmakers are expected to continue pressing for answers on the ICE data-sharing agreement, and future polling will reveal whether Americans perceive the tax cuts as beneficial come November.

Sources