Discover New IRS Tools and Tips for the 2025 Tax Season

Magnifying glass over IRS website for paying taxes.

The IRS introduces comprehensive updates for the 2025 tax filing season, ensuring smoother processes and bolstered security for American taxpayers.

At a Glance

  • New IRS guidelines encourage taxpayers to use online accounts and IP PINs for secure tax filing.
  • Form 1099-K threshold changes affect reporting requirements for online transactions.
  • Digital asset transactions must be reported on 2024 tax returns.
  • IRS expands Direct File program for easier online tax submission.

IRS Online Account and IP PIN: New Tools for Streamlined Filing

The IRS urges taxpayers to establish an IRS Online Account, which serves as a hub for managing payments, accessing return information, and receiving electronic notices. An Identity Protection Personal Identification Number (IP PIN) further safeguards against identity theft, preventing unauthorized filings with an individual’s Social Security or Taxpayer Identification Number. According to the IRS, “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.”

The introduction of these digital tools aligns with the IRS’s ongoing mission to fortify taxpayer information and enhance filing efficiency. “The IRS advises taxpayers not to rely on receiving refunds by a specific date,” mentioned Ines Zemelman, emphasizing the importance of these new security measures.

Changes to Form 1099-K Reporting and Digital Asset Disclosures

The IRS has lowered the threshold for receiving a Form 1099-K from $20,000 to $5,000 for transactions via payment apps or online marketplaces, anticipating a further reduction to $600. This shift necessitates careful reporting by taxpayers involved in digital goods or services. Furthermore, the IRS mandates full disclosure of all digital asset transactions, including cryptocurrency, on 2024 tax returns. These modifications highlight the agency’s efforts to adapt to evolving digital economies.

Beyond income from goods and services, all financial exchanges involving digital assets must be accounted for, demanding that taxpayers maintain comprehensive records. The broader implications of these updates extend the IRS’s vigilant oversight into the rapidly growing market of online transactions.

Expanded Resources and Direct File Program for Effortless Reporting

The IRS has expanded its Direct File program, offering a free, online tax preparation service available to taxpayers in participating states. Commissioner Danny Werfel explained, “Our focus at the IRS continues to be on making tax filing easier and more accessible for everyone.”

This initiative represents part of a broader effort to harness digital resources, evidenced further by enhanced online tools on IRS.gov. These tools empower taxpayers to view balances, establish payment plans, and access digital notices, facilitating a seamless transition into digital tax administration. For those navigating these changes, trustworthy tax professionals remain vital to ensuring compliance and efficiency.

Sources

1. IRS Reminds Taxpayers of Key Tax Updates as 2025 Filing Season Nears

2. IRS encourages taxpayers to prepare for 2025 filing season with online tools and key reminders