IRS to Phase Out Paper Tax Refund Checks

📢 Key Update:

• Starting Sept. 30, 2025, the IRS (with Treasury) will phase out paper tax refund checks for individual taxpayers, per Executive Order 14247.
• This is the first step in a broader transition to electronic payments.

💡 Why the Change?

1. Protect taxpayers: Paper checks are 16x more likely to be lost, stolen, altered, or delayed than electronic refunds.
2. Faster refunds: Direct deposit refunds usually arrive in <21 days; mailed checks may take 6+ weeks.
3. Cut costs: Processing electronic payments is cheaper and more efficient.

👩‍👩‍👧 Impact on Taxpayers:

• Filing unchanged — taxpayers continue filing as usual.
• Refunds go digital — mostly via direct deposit or other secure methods.
• For the unbanked: Options will include prepaid debit cards or digital wallets.
• Act now: IRS urges taxpayers to have valid banking info or consider opening a low-cost/free account (FDIC GetBanked, MyCreditUnion.gov).

📊 Context:

• In the 2025 tax season, IRS issued 93.5M refunds → 93% by direct deposit, only 7% by paper check.

🔜 Next Steps:

• Executive Order 14247 also applies to payments made to the IRS (like taxes owed) — current systems remain until new guidance is issued.
• IRS will publish detailed filing/payment guidance before the 2026 season.
• Updates will be posted on IRS.gov and shared nationwide.

👉 Bottom Line: Paper refund checks are ending. The IRS is going digital to boost security, speed, and savings, with special support to help unbanked taxpayers transition smoothly.

IRS Extends Drought Relief for Farmers and Ranchers

What Happened:

• IRS issued Notice 2025-52, extending tax relief for farmers and ranchers who sold livestock due to drought.
• Relief applies across 49 states, D.C., and other regions with drought (Sept. 2024 – Aug. 2025).

Who Qualifies:

• Eligible: Sales/exchanges of livestock held for draft, dairy, or breeding purposes.
• Not eligible: Livestock raised for slaughter, for sporting purposes, or poultry.

Relief Provided:

• Normally, replacement of drought-sold livestock must occur within 2 years.
• Extended to 4 years due to drought conditions.
• If drought persists, IRS can extend further.
• New rule: Farmers get until the end of the first tax year after the first drought-free year following the 4-year period.
• Example: If the deadline was end of 2025, now extended to the next tax year.

How Eligibility is Determined:

• Based on National Drought Mitigation Center designations of exceptional, extreme, or severe drought.

Further Resources:

• Notice 2006-82: Provides detailed examples of how the rule works.
• Publication 225 (Farmer’s Tax Guide): Guidance for reporting drought sales and other farm tax issues.

Big Picture:
This extension gives affected farmers and ranchers more time & flexibility to restore herds without immediate tax burden, easing recovery from widespread drought impacts.

Summary:The IRS is inviting the public to participate in an anonymous feedback survey on tax preparation and filing options. This survey is part of the Department of Treasury and IRS efforts to fulfill a reporting requirement to Congress under the One Big Beautiful Bill Act. The law mandates that Treasury deliver a report to Congress by October 2, 2025, addressing key issues related to free tax filing options for the public.

Key Details:

• Public feedback survey open through September 5, 2025
• Survey participation is anonymous
• The report to Congress will inform future policies on free tax filing options
• The survey can be accessed via the Free Online Tax Preparation Feedback Survey or the IRS.gov landing page

Summary:

The IRS announced the application window for the 2026 CAP program, running September 3 through October 31, 2025. Successful applicants will be informed in February 2026. CAP promotes real-time issue resolution between large corporations and the IRS, preventing disputes after returns are filed.

Key details:

• Applicants must have assets of $10 million or more.
• Eligible entities: U.S. publicly traded corporations (required to file SEC 10-K, 10-Q, 8-K) or privately held C-corporations, including foreign-owned.
• Privately held applicants must submit audited financial statements with an unqualified audit opinion (GAAP, IFRS, or approved standard) and unaudited quarterly reports.
• Audited financials must reconcile with Schedule M-3 Line 4(a).
• Entities under investigation or litigation restricting IRS access are not eligible.

Next steps:

Full program details and updates available on the IRS CAP webpage.

Summary:
The IRS and Security Summit partners highlight three core defenses against tax-related identity theft: multi-factor authentication (MFA), Identity Protection PINs (IP PINs), and IRS Online/Tax Pro Accounts. The update stresses that MFA is now a federal requirement under the FTC Safeguards Rule for protecting client data and encourages all taxpayers to enroll in IP PINs and set up secure IRS Online Accounts.

Key takeaways:

• MFA is mandatory for tax professionals and strongly recommended wherever client data is accessed or stored. It blocks attacks that exploit weak or stolen passwords.
• IP PINs are six-digit codes that help prevent fraudulent e-filing using someone’s SSN. The program is voluntary, identity-verified, and refreshed annually.
• IRS Online Account helps taxpayers securely view account details and prevents creation of fraudulent accounts. Tax Pro Account lets practitioners manage authorizations and request POA/Tax Information Authorization digitally.
• The Security Summit (IRS, states, industry, and tax pros) continues its annual “Protect Your Clients, Protect Yourself” series and features security sessions at the Nationwide Tax Forum events in Orlando (Aug 26), Baltimore (Sept 9), and San Diego (Sept 16).

Action steps:

• For taxpayers: Create an IRS Online Account; enroll in an IP PIN after verifying your identity; never share your IP PIN except with the IRS and a trusted preparer; beware of calls/emails/texts asking for the IP PIN (the IRS won’t ask).
• For tax pros: Enable MFA everywhere (tax software, cloud storage, remote access, practice management tools); evaluate MFA methods regularly; never share usernames; use Tax Pro Account to manage client authorizations; ensure firm-wide compliance with the FTC Safeguards Rule.

Notable reminders:

• Tax pros cannot obtain IP PINs for clients—clients must get their own.
• MFA should be used on both local systems and any software or services that store client data.
• Identity theft victims will continue to receive annual IP PINs automatically.

Resources to search on IRS.gov:

• “Get an IP PIN”
• “IRS Online Account”
• “Tax Pro Account”
• “Security Summit” and Nationwide Tax Forum details

Summary:
The IRS has announced that, as part of the phased implementation of the One Big Beautiful Bill Act, there will be no changes to individual information returns or federal income tax withholding tables for Tax Year 2025. This means that forms such as W-2, existing 1099s, Form 941, and other payroll return forms will remain unchanged for 2025. Employers and payroll providers should continue using current procedures for reporting and withholding.

These decisions are intended to avoid disruptions during the tax filing season and to give the IRS, businesses, and tax professionals enough time to implement future changes effectively.

Looking Ahead:
For Tax Year 2026, the IRS is preparing new guidance and updated forms, including changes to how tips and overtime pay are reported. The IRS will coordinate with employers, payroll providers, and tax professionals to ensure a smooth transition. More information will be shared in the coming months about how taxpayers can claim OBBBA-related tax benefits when they file their returns.

Summary:
The Internal Revenue Service (IRS) has issued a reminder that employers can continue to use educational assistance programs to help employees pay down student loans through December 31, 2025. Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment, and these payments are not counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Key Points:

• Employers can contribute up to $5,250 per year, per employee, for student loan repayment, tax-free.
• This benefit is available through December 31, 2025.
• Student loan payments can be included as part of broader educational assistance programs, which also cover tuition, books, and other education expenses.
• For more information, employers should refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits.

The Internal Revenue Service (IRS) reminds tax professionals that space is filling up quickly for the remaining 2025 IRS Nationwide Tax Forum events. Forums in Chicago, New Orleans, and San Diego have already sold out. The IRS encourages those planning to attend in Orlando or Baltimore to register before the standard rate deadlines.

Key Points:

• The IRS Nationwide Tax Forum is a major event for tax professionals, offering education and updates.
• Forums in Chicago, New Orleans, and San Diego are sold out.
• Registration is still open for Orlando and Baltimore, but space is limited.
• Tax professionals are urged to register as soon as possible to secure their spot and take advantage of the standard rate.

The IRS is reminding taxpayers in twelve states affected by 2024 disaster declarations that they automatically have until May 1, 2025, to file and pay their 2024 federal income taxes. Find out if you're in an eligible area and what other tax relief may be available.

Facing a tax bill you can't pay by the deadline? Don't worry! This episode breaks down the IRS's reminder about available payment plan options, helping you understand how to navigate your tax obligations without unnecessary penalties.

Are you a U.S. citizen or resident alien living or working outside the United States? Don't let the tax deadline sneak up on you! This episode is a crucial reminder that the deadline to file your 2024 U.S. federal income tax return is Monday, June 16th, 2025. We break down who this extended deadline applies to, what you need to know about potential interest charges, and important information about requesting further extensions if needed. We also cover key tax considerations for Americans abroad, including eligibility for benefits like the Foreign Earned Income Exclusion, reporting foreign accounts, and payment options. Tune in to ensure you're compliant and avoid any unnecessary penalties!

Join us as we explore the remarkable 50-year journey of the Earned Income Tax Credit (EITC). This vital program, signed into law on March 29th, 1975, has become one of the federal government's most impactful anti-poverty initiatives, providing crucial financial support to millions of low-to-moderate income working families. We delve into the history of the EITC, tracing its evolution from a modest beginning to the significant force it is today. Discover how this credit has helped families cover essential needs, save for the future, and build greater financial stability over the past five decades. We'll look at the numbers – the billions of dollars distributed and the millions of families reached – and highlight the enduring importance of the EITC in empowering working individuals and families.

Treasury & IRS Guidance on Tipped Occupations (One, Big, Beautiful Bill)

Context:

• Guidance issued under the “no tax on tips” provision of the One, Big, Beautiful Bill.
• Proposed regulations identify which occupations customarily receive tips and define what counts as qualified tips eligible for deduction.
• Nearly 70 occupations are listed, ranging from bartenders to water taxi operators.

Occupation Categories (Treasury Tipped Occupation Codes):

1. 100s – Food & Beverage Service
2. 200s – Entertainment & Events
3. 300s – Hospitality & Guest Services
4. 400s – Home Services
5. 500s – Personal Services
6. 600s – Personal Appearance & Wellness
7. 700s – Recreation & Instruction
8. 800s – Transportation & Delivery

Definition of Qualified Tips:

• Must be cash or cash-equivalent, e.g., check, card, gift card, electronic payment (excluding most digital assets).
• Must be voluntary customer payments, or received via mandatory/voluntary tip pools.
• Cannot be service charges automatically added to bills (e.g., a restaurant’s 18% charge for large parties).
• Excludes illegal activity-related payments.

Public Input:

• Comments due by Oct. 23, 2025, submitted via Regulations.gov.

Effective Impact:

• Clarifies which workers can benefit from tip deductions.
• Narrows definition of qualified tips to ensure compliance and prevent abuse.

Tax season is here, but filing doesn't have to break the bank! Discover IRS Free File, a quick and easy way for eligible taxpayers (AGI $84,000 or less) to file their federal tax returns for free. We'll break down the benefits, who qualifies, and explore other no-cost filing options like Direct File, Free File Fillable Forms, VITA, TCE, and MilTax. Say goodbye to expensive tax software and hello to stress-free filing!

The clock is ticking towards the April 15th tax filing deadline! Are you ready? This episode dives into crucial tips and reminders from the IRS to help you file your federal tax return accurately, avoid common mistakes, and potentially speed up your refund. We'll cover everything from gathering your necessary documents and ensuring your personal information is correct, to the benefits of e-filing and direct deposit. Whether you're a seasoned filer or tackling your taxes for the first time, this episode will equip you with the knowledge you need for a stress-free tax season.

This episode breaks down the recent announcement from the IRS Criminal Investigation (IRS-CI) division, naming Gary Shapley as its new Deputy Chief. We explore his extensive background in international tax and financial crime investigations, his previous roles within the IRS and Department of Treasury, and what this appointment means for the future of tackling complex financial offenses both domestically and abroad.

Did severe storms in West Virginia impact your taxes? The IRS has announced tax relief for individuals and businesses in specific counties affected by the February 2025 storms. This episode breaks down the details of the tax relief, including extended deadlines for filing and payments, and what you need to do to take advantage of these benefits. We'll cover which counties are eligible, what types of taxes are covered, and how to claim disaster-related losses. Don't miss this crucial information if you've been affected by the West Virginia storms!

Are you a retiree who turned 73 in 2024? The IRS is reminding you about an important deadline! In this episode, we break down the IRS's recent announcement (IR-2025-33) regarding Required Minimum Distributions (RMDs) from your IRAs, 401(k)s, and other retirement plans. We'll cover the crucial April 1st deadline for taking your first RMD, who it applies to, and what happens if you miss it.

Tax season is upon us! Don't get caught off guard with late filing or payment penalties. In this episode, we break down the IRS's recommendations for using electronic payment options to ensure fast, safe, and timely tax payments. We'll cover everything from IRS Free File for extensions to online payment plans and even options for those struggling to pay. Learn how to navigate the IRS website and mobile app to make tax time a breeze.

Time is running out! The IRS says over 1 million people are owed a share of $1 billion in unclaimed tax refunds from 2021. The deadline to claim this money is April 15th. Find out if you're one of them and how to get your refund. Don't leave money on the table!

Show Notes:

• IRS estimates over 1.1 million people have unclaimed 2021 tax refunds.

• Deadline to claim: April 15th.

• Total unclaimed: Over $1 billion.

• Median refund amount: $781.

• You may be eligible for the Earned Income Tax Credit (EITC) even if you didn't file.

• Find forms and instructions at IRS.gov.

• Learn how to get copies of missing W-2s and other documents.

Tax season is coming! Learn about the IRS's free options for preparing and filing your taxes in 2025, including the expanded Direct File program now available in 25 states. We'll cover Direct File, IRS Free File, and other resources to help you save money and file with confidence.

The IRS has announced the interest rates for the second quarter of 2025. Good news: they're staying the same! We break down the rates for individuals and corporations, covering overpayments, underpayments, and what you need to know.

The IRS is streamlining tax season! Learn about the new additions to your IRS Individual Online Account, including W-2s and 1095-As, making it easier than ever to access your important tax documents. We'll cover what's available, how to access it, and what to do if you're still missing information.

Treasury, IRS Issue Final Regulations on Roth Catch‑Up Rule & SECURE 2.0

Core Regulation:

• Employees age 50+ can make catch‑up contributions to workplace retirement plans (e.g., 401(k), SIMPLE IRA).
• Under SECURE 2.0, high‑income earners (with wages above certain thresholds) must make these catch‑ups as after‑tax Roth contributions.

Key Updates in Final Regulations:

• Aggregation of wages: Plan administrators can aggregate an employee’s wages from certain separate common‑law employers when determining Roth catch‑up applicability.
• Corrections allowed: Rules for fixing failures to follow Roth catch‑up requirements.
• Deemed Roth elections clarified.
• Puerto Rico coverage: Adjustments for plans covering Puerto Rico participants.

Other Provisions:

• Higher catch‑up contribution limits apply to those aged 60‑63 and for employees in new SIMPLE plans.

Effective Dates:

• Roth catch‑up requirement applies starting in 2027.
• Governmental / collectively bargained plans → may start later.
• Plans can adopt earlier, before 2027, if using a reasonable, good‑faith interpretation of the statute.
• Transition relief (Notice 2023‑62) remains unchanged → expires Dec. 31, 2025.

Big Picture:

• Aims to modernize retirement savings by shifting higher‑income workers into Roth (after‑tax) catch‑ups.
• Provides more clarity for plan sponsors and administrators as they prepare systems and communications before 2027.

Description: Are you a farmer or fisher? Don't miss the March 3rd tax deadline to avoid penalties! This episode covers the key dates, payment options, and special extensions for disaster areas. Plus, we'll point you to the essential IRS resources you need to file correctly.

Show Notes:

• Key Deadline: March 3rd, 2025 (for those who didn't make estimated tax payments)

• Who's Affected: Farmers and fishers who receive at least 2/3 of their gross income from farming/fishing.

• Payment Options: IRS Online Account, IRS Direct Pay (links in description)

• Disaster Area Extensions: Check if you're in an affected area (Alabama, Florida, Georgia, North Carolina, South Carolina, Alaska, New Mexico, Tennessee, Virginia, West Virginia, California, Kentucky) - deadlines vary!

Tax season is in full swing! Are you eagerly awaiting your tax refund? This episode dives into the IRS's handy "Where's My Refund?" tool, your go-to resource for tracking your refund status. We'll cover everything you need to know, from how to access the tool to what information you'll need to provide. We'll also discuss common reasons for refund delays and how to avoid them. Stay informed and get your refund faster!

Melanie Krause steps in as acting IRS Commissioner following Doug O'Donnell's retirement after a distinguished 38-year career. We discuss the implications of this leadership transition at a crucial time for the IRS.

Episode Description:

Tax season is upon us! Are you ready to file your 2024 tax return? In this episode, we break down the IRS's Tax Time Guide 2025, highlighting essential preparations and significant changes you need to know. We'll cover everything from updated deduction amounts and credit enhancements to new reporting requirements and free filing options. Don't get caught off guard – listen now and ensure a smooth and accurate tax filing experience!

Show Notes:

Welcome to the 2025 tax filing season! The IRS has released its annual Tax Time Guide to help you navigate the process. Here's what you need to know to file your 2024 tax return accurately and efficiently:

Key Takeaways from the IRS Tax Time Guide 2025:

• Filing Deadline: Remember, the deadline to file Form 1040 or 1040-SR is April 15, 2025.

• Gather Your Documents: Don't file until you have all necessary tax documents (W-2s, 1099s, etc.). Double-check for accuracy and contact your employer or payer immediately if you find errors.

• IRS Online Account: Create an IRS Online Account for secure access to your tax information, payment history, and records. This can help you stay organized and identify potential deductions or credits.

• ITIN Renewal: If you have an Individual Taxpayer Identification Number (ITIN), check if it has expired and renew it to avoid processing delays.

Episode Description:

Ditch the hold music! This episode reveals how to use the IRS's online tools to get your tax questions answered faster and easier. We'll cover everything from checking your refund status to finding free filing options, all from the comfort of your couch. Save time and stress this tax season – listen now!

Show Notes (Simplified):

• Intro: Why online tools are better than phone lines.

• Key Tools:

  • IRS Free File

  • Where's My Refund?

  • Individual Online Account

  • Interactive Tax Assistant (ITA)

• Quick Tips:

  • Check your withholding.

  • Beware of ghost preparers.

• Resources: IRS.gov

Episode Title: Choose Your Tax Preparer Wisely!

Episode Description:

Don't risk identity theft! The IRS urges careful selection of tax preparers (IR-2025-21). Learn red flags, find qualified pros, and explore free filing options. Protect your information and file with confidence!

Show Notes:

• IRS Warning: Choose tax preparers carefully.
• Red Flags: "Ghost" preparers, no PTIN.
• Find Qualified Pros: IRS Directory, IRS.gov.
• Free Options: VITA (income limits), TCE (seniors).
• Tips: Year-round availability, check credentials, review return.
• Report Misconduct: Form 14157, 14157-A.
• Resources: IRS Publications 5895, 17.

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Episode Title: EITC Awareness Day: 50 Years of Helping Working Families

Description: The IRS and national partners are celebrating 50 years of the Earned Income Tax Credit (EITC)! Learn if you qualify for this valuable tax break, which can put thousands of dollars back in your pocket. We'll cover eligibility, how to claim it, and new changes for this tax season. Don't miss out!

Show Notes:

• EITC 50th Anniversary: The IRS and partners launched EITC Awareness Day to highlight this important credit.
• Who's Eligible? Income limits, citizenship requirements, and more. Use the EITC Assistant tool to check your eligibility.
• How Much? The average EITC refund was $2,743 in 2023, with a maximum of $7,830 for families with children in 2024.
• How to Claim: IRS Free File, Direct File, tax professionals, and free VITA/TCE sites.
• New This Year: E-filing with duplicate dependents is now easier with an IP PIN.
• Refund Timing: Expect EITC/ACTC refunds by March 3rd if you file early and choose direct deposit.
• Resources:
• IRS EITC Central: [Link to EITC Central]
• EITC Assistant: [Link to EITC Assistant]
• VITA/TCE Locator: [Link to VITA/TCE Locator]
• Publication 596: [Link to Publication 596]

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Episode Title: Tax Time Made Easy: Top Tips from the IRS

Description: Feeling overwhelmed by tax season? The IRS just released their top 6 tips to make filing your 2024 return smoother. We break down what you need to know, from gathering documents to free filing options. Don't miss out on potential refunds and avoid headaches!

Show Notes:

• IRS released 6 tips to simplify tax filing (IR-2025-19, Jan. 30, 2025)
• Key Documents: Social Security numbers, bank info, W-2s, 1099s, 1098s, digital asset records, 1095-A, IRS letters.
• Report All Income: Online sales, investments, part-time work, self-employment, app-based services.
• File Electronically: Faster refunds, less errors.
• Free Filing Options:
• IRS Free File (income under $84,000)
• Direct File (25 states, expanded support)
• Free File Fillable Forms (for those comfortable with taxes)
• VITA/TCE (free help for eligible taxpayers)
• MilTax (military community)
• Choosing a Filing Method: Self-file, online services, tax professional (check credentials).
• IRS Online Resources: IRS.gov, Interactive Tax Assistant, IRS2Go app, social media.

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Episode Title: Tax Season is Open! What You Need to Know for 2025

Description: The IRS has officially opened the 2025 tax filing season! Millions of returns are already in, and the deadline is April 15th. We break down key dates, free filing options, and how to avoid scams. Get your taxes done right this year!

Show Notes:

• The 2025 tax filing season is officially open as of January 27, 2025.
• The IRS expects over 140 million individual tax returns for tax year 2024.
• The filing deadline is April 15th.
• Free Filing Options:
• IRS Free File (for those with income of $84,000 or less)
• IRS Direct File (available in 25 participating states)
• Volunteer Income Tax Assistance (VITA)
• Tax Counseling for the Elderly (TCE)
• MilTax (for military members and some veterans)
• Key Tips:
• File electronically and choose direct deposit for faster refunds.
• Wait for all income documents before filing.
• Use a trusted tax professional.
• Be aware of tax scams.
• New IRS Improvements:
• Enhanced IRS Online Account features.
• New scam alert banner on the Online Account.
• Redesigned notices.
• Mobile-adaptive tax forms.
• Virtual assistants for refund and other questions.
• Refunds: Most refunds issued in less than 21 days, but don't rely on a specific date. EITC/ACTC refunds may be delayed until after mid-February.

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IRS Assesses $162 Million in Penalties Over False Tax Credit Claims Tied to Social Media

The IRS has issued a strong warning about a surge in fraudulent tax schemes promoted on social media, which encourage taxpayers to claim false credits like the Fuel Tax Credit or Sick and Family Leave Credit. Since 2022, these scams, often spread by individuals posing as tax experts, have led to thousands of inaccurate returns, resulting in denied refunds and over $162 million in penalties across more than 32,000 cases.

Key Takeaways:

• Scam Traits: Look out for claims that "everyone qualifies" for credits, promises of "easy" or "fast" refunds, instructions to file amended returns without eligibility, and encouragement to ignore IRS letters.
• Consequences: Falling for these scams can lead to delayed or denied refunds, a $5,000 civil penalty for frivolous returns, and further IRS enforcement.
• IRS Advice: Taxpayers who have filed incorrect returns should amend them immediately using Form 1040-X, respond promptly to IRS notices, and seek help from reputable tax professionals or IRS.gov. Suspected scams should be reported to phishing@irs.gov or TIGTA.

The IRS urges taxpayers to exercise caution with social media tax advice and to verify all claims with official sources.

Episode Title: IRS Updates Energy Tax Credit FAQs: What You Need to Know

Description: The IRS has released updated Frequently Asked Questions (FAQs) for the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit. This episode breaks down the key changes from the previous guidance, helping you understand how these tax credits can benefit your home improvement projects. We'll cover the significant updates and point you to where you can find more information.

Show Notes:

• IRS Announcement: IR-2025-17, released January 17, 2025
• Updated FAQs: Found in Fact Sheet 2025-01 (PDF)
• Supersedes: Previous FAQs in Fact Sheet 2024-15 (PDF), released April 17, 2024
• Key Takeaway: Significant changes have been made to both the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit sections.
• Reliance Information: More details on reliance are available in the updated FAQs.

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Episode Title: IRS Clarifies Tax Rules for State Paid Family & Medical Leave

Episode Description: The IRS has released new guidance (Rev. Rul. 2025-4) clarifying the tax treatment of state-mandated paid family and medical leave programs. This episode breaks down what employers and employees in states like D.C. need to know about contributions, benefits, and reporting requirements. Are you impacted? Listen to find out!

Show Notes:

• IRS Guidance: IR-2025-16, issued January 15, 2025, provides clarity on the tax implications of state paid family and medical leave programs.
• Key Takeaways:
• Employer contributions are generally deductible as excise tax.
• Employee contributions may be deductible as state income tax (if itemizing).
• State paid family leave benefits are taxable income.
• State paid medical leave benefits are taxable income to the extent of employer contributions.
• Transition relief is available for 2025.
• Who is Impacted: Employers and employees in states with mandatory paid family and medical leave programs (like D.C.).
• IRS Revenue Ruling: Rev. Rul. 2025-4 (PDF)
• Submit Comments: The IRS is seeking feedback on additional scenarios. Find the ruling and submit comments at https://www.regulations.gov (search for IRS-2025-0012) or by mail (address provided in the show).

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Episode Title: IRS Deadline Alert: Wage Statements & 1099s Due January 31st!

Description: Heads up, business owners! The IRS is reminding everyone that wage statements (W-2s) and certain information returns (like 1099-NECs) are due January 31st. Don't get hit with penalties! We break down what you need to file, how to file electronically, and what to do if you need an extension. Listen now to stay compliant!

Show Notes:

• Key Deadline: January 31st for filing wage statements and certain information returns.
• Forms Due:
• Form W-2 (Wage and Tax Statement) and W-3 (Transmittal of Wage and Tax Statements) to the Social Security Administration.
• Form 1099-NEC (Nonemployee Compensation) to the IRS.
• Recipient Copies: Also due January 31st. Check form instructions for specific dates.
• E-Filing: Required for 10+ information returns. Use the IRS's IRIS system for free 1099 e-filing.
• Extensions: Form 8809 for a 30-day extension (not automatic). Extension for furnishing copies to recipients must be requested via fax.
• Penalties: Avoid penalties by filing accurately and on time.
• Resources:
• IRS E-file information returns page
• IRS Information Returns Intake System (IRIS)
• Form 8809, Application for Extension of Time to File Information Returns
• IRS Information Return Penalties page
• IRS Forms, instructions and publications search tool

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Episode Title: IRS Fast Tracks Tax Dispute Resolution with New Pilot Programs

Description: The IRS is making it easier to resolve tax disputes! Learn about the new Fast Track Settlement pilot programs designed to speed up and simplify Alternative Dispute Resolution (ADR). We break down the key changes, including issue-by-issue eligibility, clearer denial explanations, and a "last chance" option. Tune in to see how these changes could benefit you.

Show Notes:

• IRS announces three pilot programs to improve Alternative Dispute Resolution (ADR)
• Focus on Fast Track Settlement (FTS) and Post-Appeals Mediation (PAM)
• Key changes:
• Issue-by-issue FTS eligibility
• Executive approval required for FTS/PAM denials
• Clear explanations for FTS/PAM denials
• "Last Chance FTS" pilot for SB/SE taxpayers
• FTS participation no longer precludes PAM eligibility
• Traditional appeals process still available
• Inquiries: ap.adr.programs@irs.gov
• Feedback: Announcement 2025-06 PDF

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Episode Title: IRS Advisory Council Gets a Refresh: Meet the New Members for 2025

Description: The IRS has announced 18 new members for its Advisory Council (IRSAC) for 2025! We break down who these individuals are, what the IRSAC does, and why it matters for taxpayers. From tax professionals to legal aid experts, this diverse group will provide crucial feedback to the IRS. Tune in to learn more!

Show Notes:

• IRS Announcement: The IRS has appointed 18 new members to the Internal Revenue Service Advisory Council (IRSAC) for 2025 (IR-2025-13).
• What is the IRSAC? A public forum established in 1953 where IRS officials and public representatives discuss tax administration issues.
• Purpose: Provides feedback, observations, and recommendations to the IRS.
• 2025 Chair: Christine Freeland, President of Christine Z. Freeland, CPA PC.
• New Members: A diverse group representing taxpayers, tax professionals, businesses, and more. (List a few key names/roles)
• Key Areas of Representation: Taxpaying public, tax professionals, small and large businesses, tax-exempt entities, and information reporting interests.
• Annual Report: The IRSAC will submit its annual report in November 2025.

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Title: IRS Cracks Down on Tax Scams for 2025!

Description: The IRS and CASST are making big changes for the 2025 tax season to protect you from scams! We'll break down the new Fuel Tax Credit rules, increased scrutiny on "other withholding," and how to spot "ghost preparers." Don't get caught out - listen now!

Show Notes:

• IRS & CASST: The IRS and the Coalition of Scam and Scheme Threats (CASST) are working together to combat tax fraud.
• Fuel Tax Credit: A new statement is required for those claiming the Fuel Tax Credit. Learn who it affects and what information is needed.
• "Other Withholding": The IRS is increasing its review of "other withholding" claims on Form 1040. Make sure you have the proper documentation.
• "Ghost Preparers": Beware of "ghost preparers" who don't sign tax returns. They can leave you vulnerable to scams.
• Stay Informed: Protect yourself by staying informed and seeking trusted tax advice.

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Episode Title: IRS Proposes New Rules for Corporate Separations & Reorganizations

Episode Description: The IRS and Treasury have released proposed regulations and a new draft form concerning corporate separations and reorganizations. This episode explains the key changes, who's affected, and what it all means for tax-free transactions. We'll also cover the new Form 7216 and how to submit comments on these important proposed rules. Tune in to stay informed!

Show Notes:

• New Proposed Regulations: The IRS and Treasury are seeking comments on proposed regulations regarding corporate separations and reorganizations.
• New Form 7216: A draft of new Form 7216, Multi-Year Transaction Reporting PDF, has been released.
• Purpose: These changes aim to improve the IRS’s administration of tax laws for corporate separations, ensuring they qualify for tax-free treatment.
• Key Impact: Increased reporting is required for multi-year corporation separations.
• Benefits: The increased reporting aims to provide greater flexibility for these complex transactions (retention, monetization).
• Future Rulings: IRS plans to incorporate these proposed regulations into procedures for private letter rulings (PLRs).
• Comment Period: Comments on both regulations (REG-112261-24 & REG-116085-23) and Form 7216 are due by March 17, 2025.
• How to Comment: Comments can be submitted via the Federal e-Rulemaking portal or by mail. See details in the show.
• Source: IRS News Release IR-2025-11

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Title: IRS Extends Tax Deadlines for California Wildfire Victims

Episode Description: The IRS has announced tax relief for individuals and businesses affected by the recent wildfires and winds in Southern California. Learn about the extended deadlines, which now push various tax filings and payments to October 15, 2025. We'll cover who qualifies and what types of returns are impacted. Plus, we'll touch on disaster loss claims and free tax preparation resources.

Show Notes:

• Southern California wildfire victims now have until Oct. 15, 2025, to file and pay certain taxes.
• Relief applies to taxpayers in areas designated by FEMA (currently Los Angeles County).
• Extended deadlines include individual, business, and payroll tax returns and payments normally due between Jan. 7 and Oct. 15, 2025.
• Disaster loss claim information and free tax prep resources are also available.
• See IRS.gov for the latest information and updates.

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Episode Title: SECURE 2.0: New Auto-Enrollment Rules for 401(k) and 403(b) Plans

Description: The Treasury and IRS have released proposed regulations for the SECURE 2.0 Act's new auto-enrollment requirements for 401(k) and 403(b) plans. This episode breaks down the key details, including which plans are affected, the required contribution percentages, and the proposed timeline for implementation. If you manage or sponsor a retirement plan, this is a must-listen!

Show Notes:

• IR-2025-09: The IRS announcement of proposed regulations on automatic enrollment.
• SECURE 2.0 Act: The legislation that mandated automatic enrollment for certain plans.
• Applicability: New 401(k) and 403(b) plans established after December 29, 2022.
• Auto-Enrollment Requirement:
• Initial contribution rate of at least 3% of employee's pay.
• Automatic annual increases of 1%, up to at least 10%.
• Employees can opt out of auto-enrollment.
• Exemptions: New and small businesses, church plans, and governmental plans.
• Implementation Timeline: Proposed regulations apply to plan years beginning more than 6 months after final regulations are issued. In the interim, use a good faith interpretation of the statute.
• Public Comment: The Treasury and IRS are accepting comments on the proposed regulations through the Federal Register.

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Title: IRS Announces 2025 Tax Season Start Date & New Filing Tools

Description: The IRS has announced that the 2025 tax filing season will begin on January 27th, 2025. This episode covers key updates, including the expansion of the Direct File program to 25 states, the continued availability of the Free File program, and other improvements to IRS online tools and services. Learn how these changes can help you navigate the upcoming tax season.

Key Points:

• Tax season begins January 27, 2025.
• Direct File now available in 25 states.
• Free File program is now open.
• Enhanced online tools and virtual assistant support.

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Summary — IRS Urges Emergency Preparedness Ahead of Peak Disaster

As hurricane season peaks and wildfire risks remain high, the IRS urges individuals and businesses to update their emergency preparedness plans during National Preparedness Month. Key steps include safeguarding important documents like tax returns and insurance policies in waterproof, fireproof containers, maintaining detailed inventories of property with photos and descriptions, and creating digital backups. Employers are advised to ensure payroll service providers have fiduciary bonds and to use the Electronic Federal Tax Payment System for secure payments. When federal disasters are declared, the IRS often delays filing and payment deadlines automatically. Uninsured disaster losses may be deductible on tax returns. The IRS provides resources to help reconstruct lost records and encourages everyone to be prepared to minimize disaster impacts.

Episode Title: SECURE 2.0 Update: Roth Catch-Up Rules & More

Description: The IRS and Treasury have released proposed regulations for key SECURE 2.0 Act provisions, including the new Roth catch-up rule for higher earners and increased catch-up limits for certain older workers. We'll break down what you need to know in this short update.

Show Notes:

• IRS and Treasury release proposed regulations on SECURE 2.0 Act provisions.
• Focus: Roth catch-up contributions for higher-income earners.
• Guidance provided for plan administrators on implementing the new rules.
• Increased catch-up limits for employees aged 60-63 and SIMPLE plan participants.
• Public comment period open – see Federal Register for details.

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Episode Title: IRS Tackles Partnership Basis Shifting

Episode Description:

New rules! IRS targets partnership basis shifting as "Transactions of Interest." Higher reporting thresholds, limited retroactivity. Quick update.

Show Notes:

• IRS targets "basis shifting" as TOIs.
• Higher thresholds: $25M before '25, $10M after.
• Limited lookback: 6 years.
• Extended deadlines, PTP exceptions.
• Review your partnerships!

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Episode Title: IRS Tax Filing Deadline Extended for Carter Remembrance

Show Notes:

• The IRS has granted taxpayers an extra day to file returns and pay taxes originally due January 9, 2025.
• The new deadline is Friday, January 10, 2025.
• This extension is in observance of the National Day of Mourning for former President James Earl Carter, Jr.
• The extension applies to all federal tax returns, payments, and deposits, including those made via EFTPS.
• Listen for a quick recap of how this impacts you.

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Episode Title: IRS Under Fire: Taxpayer Advocate Flags Major Issues in New Report

Description: The National Taxpayer Advocate's latest report is out, and it's a mixed bag. While some progress has been made at the IRS, significant problems persist with processing Employee Retention Credits and resolving identity theft cases. We break down the key findings, the funding debate, and what it means for you.

Show Notes:

• National Taxpayer Advocate Report: Erin M. Collins releases 2024 Annual Report to Congress.
• Good News, Bad News: IRS improvements noted in taxpayer service and tech.
• Major Issues:
• ERC Delays: 1.2 million claims backlogged, harming businesses.
• Identity Theft Delays: Cases taking almost two years to resolve!
• Funding Debate: Advocate calls for more funding for taxpayer services and IT, less for enforcement.
• Key Recommendations:
• Speed up claim processing.
• Prioritize identity theft cases.
• Boost taxpayer services funding.

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