The IRS is at the center of several important updates that could impact taxpayers and businesses in the coming months. Here’s a breakdown of the most relevant news to keep on your radar:
1. Tax Season Deadlines Are Approaching
As we gear up for the 2024 tax filing season, it’s time to get your paperwork in order. While the IRS has not announced the exact date it will start accepting tax returns, it’s typically mid-to-late January. If you make estimated tax payments, remember the fourth-quarter deadline is January 15, 2025, and the final deadline for filing your 2024 tax return or requesting an extension is April 15, 2025.
The IRS recommends filing electronically and selecting direct deposit for a faster refund. Early preparation will help ensure you’re ready to tackle tax season head-on.
2. Unclaimed Stimulus Payments Are on Their Way
The IRS is issuing automatic payments of up to $1,400 to over a million taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 returns. These payments are part of efforts to ensure individuals who missed out on stimulus payments during the pandemic still receive the financial help they’re entitled to.
If you qualify, you don’t need to take any action—payments will be directly deposited or sent via check by the end of January 2025. If you think you might be eligible, keep an eye on your mail or bank account.
3. Proposed Tax Policy Changes Could Shake Things Up
The recent election has sparked discussions about potential tax reforms. Proposals include making the 2017 tax cuts permanent, reducing the corporate tax rate to 15% for some businesses, increasing the child tax credit, and cutting certain green-energy tax breaks. While these changes are far from finalized, they could significantly impact individual taxpayers and businesses.
4. IRS Intensifies Focus on Cryptocurrency
The IRS has obtained information on thousands of cryptocurrency accounts through summonses to exchanges and other enforcement actions. Reporting these transactions correctly is crucial if you’ve been active in trading, selling, or receiving crypto as payment. The cryptocurrency question on Form 1040 is a high-priority item for the IRS, and answering “No” when the correct answer is “Yes” can lead to serious consequences, including penalties for filing a false return.
New reporting rules for brokers will take effect next year, requiring them to disclose crypto sales to the IRS, with even more detailed requirements coming in 2026. As crypto is treated as property for tax purposes, gains or losses are subject to capital gains tax. Accurate reporting is more important than ever to avoid audits or enforcement actions.
What Does This Mean for You? Staying informed about IRS developments can help you avoid surprises and take advantage of opportunities, such as the unclaimed Recovery Rebate Credit. Whether you’re a taxpayer preparing for filing season or a crypto investor navigating new rules, keeping up with the latest tax news is essential.