IRS to give 'gigantic' tax refunds in 2026; Scott Bessent reveals key details

US tax season begins with possible good news: Treasury Sec. Bessent says Trump-era tax cuts could mean “gigantic” refunds, up to $2,000, for many Americans.

Published on: Dec 26, 2025 8:38 AM IST

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As the new year kicks in, the tax filing season in the United States is set to kick off. And, the Internal Revenue Service (IRS) may have some good news for Americans filing taxes for the financial year 2025-26.

With the tax cuts under President Donald Trump's Big Beautiful Bill in effect for the ongoing financial year, American tax players could be in line for potentially bigger tax refunds this year. At least, that's what's interim US Treasury Department Secretary, Scott Bessent, hinted recently.

Bessent, 63, recently appeared on the All-In Podcast - a popular American business and tech podcast featuring four venture capitalists—Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg. He revealed the Americans could potentially get "gigantic" tax cuts in 2026.

"I also had the honor of being the IRS commissioner and I can see that we're gonna have a gigantic refund year in the first quarter because the working Americans do not change their withholdings," Bessent said, adding that working Americans could see up to $2000 in refund this year.

Scott Bessent Defends Calling US Fed 'Engine Of Inequality'

In the same podcast appearance, Scott Bessent slammed the US Federal Reserve over its unwillingness to lower the interest rate. Notably, Donald Trump has slammed the US Federal Reserve Chair, Jerome Powell, for not lowering the interest rates fast enough. Bessent reiterated Trump's words, calling the US Fed an "engine of inequality" in the All In One podcast Tuesday.

Also read: Divided US Fed delivers third rate cut of 2025 amid signals of a future pause

“I called the Fed 'the engine of inequality' and someone said to me, ‘Well, do you believe that the Fed is responsible for economic equality in the system?’” he said. And I said, ‘Absolutely not. That is not one of their mandates, but they shouldn't be exacerbating it."

“(During COVID) markets became disorderly and the Fed did exactly what it should do,' he added. "It came in, it stabilized the market. But for some reason, they decided that they needed to continue this QE right up until … February or March of 2023.”

ABOUT THE AUTHOR
Shamik Banerjee
Shamik is a journalist covering the United States for Hindustan Times. He has more than four years of experience reporting on US politics, sports, and major breaking stories across fast-moving cycles. He previously worked at Times Now and Sportskeeda, building strong newsroom instincts and digital storytelling skills. At HT.com, he focuses on day-to-day coverage of US political developments while also handling high-impact stories that demand speed, accuracy, clarity, and context under pressure. Shamik has extensive experience covering NFL game days over the past two years, coordinating live updates, analysis, and explainers. He is particularly drawn to large news moments such as US elections and the Super Bowl, where he thrives at the news desk working alongside the team. He holds degrees in Media Studies from Jamia Millia Islamia and English Literature from Jadavpur University. Before entering journalism, he briefly worked in digital marketing and political consultancy roles. Currently a Senior Content Producer at HT Digital, he is driven by curiosity, discipline, and a constant desire to explore new and obscure topics. Outside work, he enjoys reading, films, sports, and learning continuously.Read More

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