What’s New for Taxpayers in 2025? Key IRS Updates Unveiled

The IRS has unveiled critical updates for the 2025 tax season, fostering an efficient filing process for taxpayers.

At a Glance

Sign up for an IRS Online Account to streamline tax tasks.
Use an IP PIN for enhanced security against unauthorized return filings.
Report digital asset transactions to comply with IRS requirements.
Stay informed on new Form 1099-K thresholds for tax reporting.

IRS Online Account: A Tool for Streamlined Tax Management

Taxpayers are urged to create an IRS Online Account to access their recent tax return information, manage payments, and receive electronic notifications. Utilizing this tool simplifies the process and enhances security, while offering convenient access to a variety of IRS services.

Having an Identity Protection Personal Identification Number (IP PIN) is crucial for taxpayers to prevent unauthorized filings using their Social Security number. The best method to obtain an IP PIN is through the IRS Online Account. This step is particularly vital, as a valid IP PIN now allows processing returns with repeated dependent claims.

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 Deadlines and Regulations for Non-Wage Income and Digital Assets

Taxpayers earning non-wage income must ensure their estimated tax payments for the period of September to December 2024 are completed by January 15, 2025. This measure helps in avoiding penalties associated with underpayment of tax dues.

“There are a number of things taxpayers can do to get ready as the end of 2024 nears and the start of the 2025 tax season approaches” – a Dec. 19 statement from the agency

The IRS reinforces the need to report all digital asset transactions, including cryptocurrencies, in the 2024 tax returns. Detailed records must be maintained as part of compliance efforts.

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

Reports and Tools: Navigating New Thresholds and Online Assistance

The Form 1099-K threshold has been adjusted, now applying to transactions exceeding $5,000. Taxpayers must report all applicable income, regardless of the issuance of a 1099-K. This ensures complete transparency and adherence to the IRS regulations.

The IRS has introduced several tools on IRS.gov, empowering taxpayers to view and manage their accounts efficiently. Enhanced digital tools provide functionalities such as setting up payment plans, downloading transcripts, and accessing official notices.