Officially, the 2025 tax season started on Monday, January 27. The IRS anticipates over 140 million individual tax returns in this tax season 2025 to be filed before the federal deadline on Tuesday, April 15. This year more than half of these returns are expected to be filed with the assistance of a tax professional. To ensure accuracy and safeguard against potential scams, the IRS strongly encourages taxpayers to seek help from a trusted tax professional.
Here are some important updates and tips to be aware of while you begin your tax filing.
IRS Online Account
For the average taxpayer, filing the annual tax can be confusing. There are numerous tools and services available to help individual taxpayers, one of which is an IRS Online Account. This digital platform allows taxpayers to quickly access tax information, making the tax season 2025 easier and helping to safeguard your tax information.
Benefits of IRS Online Account
- The IRS Online Account allows taxpayers to access information on their payoff amount, which is updated on the current day
- Taxpayers can view the balance for each tax year in which they owe taxes
- It displays their payment history
- Key details from their most recent tax return, as originally submitted
- Payment history and the details of any payment schedule they have set up with the IRS
- Digital copies of any IRS notices that they have received
Gather and organize all year-end income documents
It is significant for taxpayers to have all of the relevant paperwork before starting to prepare their returns. This allows them to file a complete and accurate tax return. Here is some information that taxpayers need before filing their taxes:
- Social Security Numbers
- Bank account and routing numbers
- Sources of income
- Types of deductions
Understand refund timing and how to avoid delays
Several factors can influence the timing of a refund once the IRS receives the tax return. While most of the refunds from the IRS are issued in less than 21 days, some returns may require further review and processing time if there are any problems, missing information, or indications of identity theft or fraud.
Use direct deposit for a faster refund
The quickest method for taxpayers to receive their refund is to file electronically and select direct deposit. Since refunds are electronically deposited, there is no chance of a paper check being stolen or lost in the mail. It’s also the easiest way to get a refund.
Free filing options
75% of all taxpayers can use free brand name tax software to prepare and file their federal income tax returns online through IRS Free File. All taxpayers, regardless of income level, can use the IRS Free File Fillable Forms.
Identity Protection Personal Identification Number (IP PIN)
Tax season comes not only the responsibility of filing returns but also the increased risk of identity theft. In response, from this tax season 2025, the IRS has created a key tool for taxpayers: The Identity Protection Personal Identification Number (IP PIN).
The IRS IP PIN is a six-digit number provided to eligible taxpayers to help prevent fraudulent use of their Social Security Number (SSN) on federal income tax returns. Each year a new IP PIN will be generated. The IRS adds an extra layer of security by providing a unique PIN to each taxpayer who opts in, making illicit access much more challenging.
Applying for an IP PIN is simple and can be done online through the IRS website. The process includes validating your identity via the IRS secure portal, which may require information from previous tax returns, personal accounts, or personal identity documents. The IRS offers alternative ways to apply for an IP PIN. These include applying via mail or in person at an IRS office.
1099-K Threshold Changes
Form 1099-K is used to record the yearly gross amount of transactions (e.g., digital payments, credit card/debit cards, store value of gift cards, payment applications, and online marketplaces) processed by third-party settlement organizations (TPSO). The form is used for reporting taxable income. A much-anticipated 1099-K reporting threshold change for online marketplaces and payment apps will come into effect for the following two years. Form 1099-K should be sent to:
- Taxpayers who recorded more than $2,500 in business transactions during calendar year 2025
- Taxpayers who recorded more than $600 in business transactions in calendar year 2026
Digital Assets on Taxes in Tax Season 2025
The IRS definition of a digital asset is any digital representation of value maintained on a cryptographically protected distributed ledger (blockchain) or similar technology. Cryptocurrencies, NFTs, stablecoins, and tokenized securities are increasingly popular among digital assets. Anyone who sold cryptocurrency got it as payment, or had other digital asset transactions must appropriately report it on their tax returns.
IRS AUDIT GROUP
IRS Audit Group consists of tax professionals, CPAs, enrolled agents, and tax attorneys. We are located in Los Angeles, California and our primary area of expertise is IRS Tax Audit Representation. However, our certified professionals cooperate and work with all IRS offices nationwide. Please get in touch with us for more information.
https://irsauditgroup.com/contact/
Telephone Number: (310) 498-7508