New IRS guidelines for the 2025 tax season are crucial for taxpayers seeking to secure their financial information and streamline filing procedures.
At a Glance
- IRS introduces important steps to ease tax filing and enhance security.
- Online tools and the IRS Online Account are recommended for better management.
- Significant changes in Form 1099-K reporting threshold adjustments.
- Mandatory reporting for all digital asset transactions.
Preparing for 2025 Tax Season
The IRS has laid out critical guidelines aimed at aiding taxpayers as the 2025 tax season approaches. Central to these preparations is the use of the IRS Online Account, which offers secure access to return information, payment management, and electronic notices. Emphasis is also placed on the importance of securing an Identity Protection Personal Identification Number (IP PIN) to prevent unauthorized filings.
Maintaining a robust system for tax filing, the IRS also stresses the necessity of estimated tax payments, particularly for those with non-wage income. The deadline for the payment covering the September to December 2024 period is January 15, 2025.
For the 2025 filing season, #IRS Direct File will be available to more than 30 million taxpayers in 24 states and include new features to make filing taxes quicker and easier. Read more here about the expansion of the free e-filing service: https://t.co/Xebx1jK1XY
— IRSnews (@IRSnews) October 12, 2024
Key Reporting Changes
The IRS has reduced the reporting threshold for Form 1099-K from $20,000 to $5,000, further demonstrating its increased scrutiny on digital and cashless transactions. The potential future adjustment of this threshold to $600 underscores the need for taxpayers involved in digital marketplaces to maintain accurate records, despite whether a 1099-K form is received.
“The best way to sign up for an IP PIN is through the IRS Online Account” – the agency
The Agency’s mandate extends to digital asset transactions, with the requirement for all include holdings like cryptocurrencies to be fully disclosed. Taxpayers need to ensure that all income is reported to avoid complications.
As tax season approaches, the #IRS is reminding people of simple steps they can take now to #GetReady to file their 2024 federal tax returns. Learn more at https://t.co/xdabvs5mLT
— IRSnews (@IRSnews) December 19, 2024
Enhancements and Tools for Taxpayers
Among its efforts to simplify tax processing, the IRS introduced updated digital tools, available through IRS.gov, that allow taxpayers easy access to view balances, download transcripts, and engage in digital correspondence with the IRS. Such assistance forms part of the IRS Commissioner Danny Werfel’s vision to make tax filing more accessible.
“Our focus at the IRS continues to be on making tax filing easier and more accessible for everyone,” said IRS Commissioner Danny Werfel.
As the season nears, taxpayers are advised to organize their documents and review their withholdings. The IRS Tax Withholding Estimator tool is available to aid in ensuring correct tax withholdings are set. Engaging these resources early will help mitigate potential delays or discrepancies in filings.
Sources
1. IRS encourages taxpayers to prepare for 2025 filing season with online tools and key reminders
2. IRS Reminds Taxpayers of Key Tax Updates as 2025 Filing Season Nears
