Although the 2025 federal tax season ended in April, many Americans are still receiving IRS notices, exploring tax tools, and hearing about refund rumors. With confusion circulating online, this article explains three trending topics—IRS Direct File, IRS Notice CP59, and the supposed “$500 IRS refund”—and what they mean now that tax season is over.
What is the IRS Direct File program?
IRS Direct File is a government-run, online tax filing platform designed for eligible taxpayers to file simple federal returns directly with the IRS—for free. While it was widely used during the 2025 tax season, many are now wondering if it will return next year.
Key facts:
- Who it served: Available to residents in 25 states, Direct File supported simple returns only—primarily W‑2 income, standard deductions, and limited credits.
- Languages: Offered in English and Spanish
- Design: Mobile-friendly and guided with an intuitive interface
- Savings: Helped many Americans avoid commercial tax software fees averaging $160+
Though Direct File launched in 2024 and expanded in 2025, its future is uncertain amid political debate. As of now, no official decision has been made about whether it will return for the 2026 filing season.
What to know now: The Direct File platform is no longer accepting returns for 2025, but you can monitor updates on its status at IRS Direct File.
What is IRS Notice CP59?
IRS Notice CP59 is a letter the IRS sends when it has no record of a filed tax return for a prior year—often the most recent one.
Even after the April deadline, the IRS continues to send CP59 notices throughout the year if it believes you failed to file a required return.
What the notice means:
- The IRS believes you were required to file and hasn’t received your return.
- You’re expected to file your return immediately or provide a valid reason for not filing.
What to do if you receive CP59:
- If you haven’t filed: File your 2024 tax return now to avoid penalties and interest.
- If you already filed: Confirm the IRS processed it—especially if it was mailed.
- Not required to file? Complete and return the included Form 15103 to explain.
Important: Ignoring CP59 can result in the IRS filing a substitute return, which often omits credits or deductions and could lead to a higher tax bill.
Is there a $500 IRS refund in 2025?
There is no official $500 federal tax refund from the IRS in 2025, despite widespread rumors online and on social media.
What’s actually happening:
- Some states, like Georgia, issued up to $500 in state tax rebates this year:
- $250 for single filers
- $500 for married couples filing jointly
- These payments are state refunds, not from the federal IRS.
No national IRS refund of $500 has been authorized by Congress or announced by the Treasury Department.
Caution: Be wary of texts, emails, or posts claiming you’re owed a $500 IRS refund. These are often scams designed to steal personal information.
What taxpayers should do now
Even after tax season, there are important follow-ups to consider:
| Topic | What to Do |
|---|---|
| IRS Direct File | Stay informed about whether it will return in 2026. |
| IRS Notice CP59 | Respond quickly if you receive it—file or explain. |
| $500 Refund Rumor | Ignore federal refund rumors; check your state’s rebate info instead. |
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