In
2025, the IRS has continued its long-term strategy of consolidating
paper tax return processing centers, though a previously planned closure of the
Austin center was reversed in 2022 to manage backlogs. Separately, the agency
also faced controversy over plans to close several Taxpayer Assistance Centers
(TACs) in late 2025.
Paper
Processing Center Consolidation
The IRS has been moving toward fewer, more efficient processing centers due to the ongoing increase in electronic filing. The long-standing plan was to eventually have only two processing sites remaining: Kansas City, Missouri, and Ogden, Utah.
Fresno,
California, ceased processing operations in September 2021.
The Austin,
Texas, center was scheduled for consolidation in September 2024; however, the
IRS canceled this closure plan in January 2022 to ensure sufficient capacity to
handle paper return backlogs.
As of late 2025, the remaining primary Submission Processing Centers are in Austin, Kansas City, and Ogden.
Other Consolidation and Changes in 2025
Taxpayer Assistance Centers (TACs): In September 2025, the IRS faced criticism from the National Treasury Employees Union (NTEU) and the Taxpayer Advocate Service for plans to close nine TACs. This move was seen as a reversal of progress made in expanding in-person services using funds from the Inflation Reduction Act.
Administrative Functions: The Treasury Department, as a whole, planned to centralize administrative functions like IT, human resources, and procurement into a shared services center in 2025, which would involve moving some IRS employees to the new structure.
Digital Consolidation: The IRS has also focused on digital consolidation, for example, by adding various information return documents to the online account tool to provide taxpayers a single digital location for their tax records.
No, there was no new IRS processing center consolidation in 2025 beyond the plans already established from previous years. Existing plans were either maintained or, in the case of the Austin center, a previously planned closure was cancelled in favor of keeping it open.
Overview
of IRS Processing Center Consolidation
The IRS has been undergoing a long-term consolidation of its paper tax return processing sites due to the continuous increase in electronic filing. The primary goal is to reduce the number of processing centers from five down to two by the end of fiscal year 2024, a plan made in prior years.
Austin, Texas: A planned closure for September 2024 was cancelled in January 2022 to ensure sufficient processing capacity, leaving it operational.
Fresno,
California: Submission processing operations ended in September 2021.
Cincinnati, Ohio: Processing operations ceased after September 2019.
Remaining Centers: The consolidation plan aims for two main processing centers to remain operational: Kansas City, Missouri, and Ogden, Utah.
As of late 2025, the existing Submission Processing Centers are in Austin, Kansas City, and Ogden. While the physical processing centers have remained stable, the IRS has focused on other modernization efforts in 2025, such as expanding online services, accelerating digitalization, and phasing out paper refund checks starting September 30, 2025.
Taxpayers can find current processing statuses on the official IRS Processing status for tax forms page.
https://www.google.com/search?q=were+irs+processing+centers+consolidated+in+2025
Comments
The 2024 Tax Processing delay was not caused by the Trump Administration’s reorganization. IRS began to separate and reduce paper filing by mail when E-Filing began years ago.
Norb Leahy, Dunwoody GA Tea Party Leader
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