Discover Essential 2025 IRS Tax Updates: Accounts, Security, and Reporting Changes

As the 2025 tax season looms, the IRS announces key updates vital for taxpayers managing their financial obligations and personal data security.

At a Glance

IRS introduces changes to online accounts and security measures with IP PINs.
New reporting threshold for Form 1099-K has been lowered to transactions over $5,000.
IRS stresses reporting digital assets in tax returns.
Enhanced IRS Online Account for managing tax-related activities.

New Tools and Security Measures by the IRS

The IRS encourages taxpayers to sign up for an IRS Online Account. This platform offers access to recent return information, payment management, and digital notices. An IP PIN is recommended for protecting Social Security and Taxpayer Identification Numbers from unauthorized use. Additionally, the Direct File program expands to provide a free, online tax preparation tool for taxpayers in participating states.

The IRS emphasizes the importance of obtaining an IP PIN. “An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using an individual’s Social Security number or Individual Taxpayer Identification Number,” states the agency. This measure aims to strengthen taxpayer data security amid rising identity theft incidents.

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

Notable Changes in Tax Reporting

Lower reporting criteria for Form 1099-K are implemented, applying to transactions exceeding $5,000. All income, including digital asset transactions like cryptocurrencies, must be reported, ensuring compliance and transparency in tax filings. The IRS stresses keeping detailed records of these transactions for the 2024 tax returns.

“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.

Taxpayers with non-wage income should make estimated tax payments by January 15 for the September–December 2024 quarter. Organizing tax documents and reviewing withholding before the end of 2024 are crucial preparatory measures for minimizing errors and delays in the filing season.

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

IRS Campaigns to Aid Tax Preparations

The “Get Ready” campaign is promoted by the IRS to help taxpayers prepare for the 2025 tax season. “Our focus at the IRS continues to be on making tax filing easier and more accessible for everyone,” said IRS Commissioner Danny Werfel. “We’ve added more digital tools to help taxpayers.” Availability of updated online tools will facilitate easier access to balance view, payment plan setup, and downloading IRS transcripts.

IRS Commissioner Danny Werfel emphasizes preparing for the 2025 tax season by reviewing withholdings and utilizing the IRS Online Account.

Filing early, filing electronically, and opting for direct deposit are strategies suggested for faster refunds. Taxpayers should not expect refunds by a specific date due to potential delays from errors or fraud prevention reviews.