Topics in the news | Internal Revenue Service

Topics in the news

Here you'll find items of current interest — new programs, recent guidance or timely reminders.

Tax updates and news from the IRS

The Tax updates and news from the IRS page is designed to help anyone whether they are now preparing their tax return or are awaiting processing of a return or refund. It also has the latest updates on IRS letters and notices. Newer updates will be placed at the top of that page. The IRS will also provide critical updates through social media.

National Taxpayer Advocate delivers Annual Report to Congress

National Taxpayer Advocate Erin M. Collins released her 2024 Annual Report to Congress, finding overall improvement in IRS taxpayer service but also highlighting persistent challenges, particularly delays in processing Employee Retention Credit (ERC) claims and resolving Identity Theft Victim Assistance cases.

IRS Free File opens Jan. 10

IRS Free File Guided Tax Software will begin accepting individual tax returns on Friday, Jan. 10 from taxpayers ahead of the official start of tax season later this month. Millions of taxpayers nationwide can access free software tools offered by trusted IRS Free File partners by visiting IRS.gov.

IRS reminder to disaster area taxpayers with extensions

The IRS reminds disaster-area taxpayers who received extensions to file their 2023 returns that, depending upon their location, their returns are due by Feb. 3 or May 1, 2025. Additionally, taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes all 2023 and 2024 return.

Special payments to taxpayers who did not claim 2021 Recovery Rebate Credit

The IRS will issue automatic payments to 1 million eligible people who did not claim the Recovery Rebate Credit on their 2021 tax returns. No action is needed for eligible taxpayers to receive these payments, which should arrive in most cases by late January 2025.

Get ready to file your tax return

As the 2025 tax season approaches, the IRS reminds taxpayers of simple steps they can take now to prepare to file their 2024 federal tax returns. IRS.gov is a valuable resource for taxpayers, offering a variety of online tools available 24/7. These tools help individuals file and pay taxes, track refunds, access account information and get answers to tax questions.

IRS increases the standard mileage rate in 2025

Beginning Jan. 1, 2025, the standard mileage rates for automobiles driven for business are 70 cents per mile for business use, an increase of up 3 cents from 2024. The mileage rates for vehicles used for other purposes will remain unchanged. The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.

Reduced refund delays for individuals with duplicate dependent returns

The IRS is making it easier for taxpayers to protect their information and avoid refund delays by accepting certain e-filed tax returns that claim dependents who have already been claimed on another taxpayer’s return.

Expansion of Business Tax Account

The Business Tax Account (BTA) has added new useful features, making the online self-service tool for business taxpayers available to C corporations. In addition, a Designated Official (DO) can now access BTA on behalf of their S corporation or C corporation. New features also include tax return, tax account and entity transcripts for the current tax year and some previous tax years.

Reminder for retirees

The IRS urges many retirees to make required withdrawals from retirement plans by the year-end deadline. The agency reminds taxpayers aged 73 and older of the deadline to take required minimum distributions (RMDs) from individual retirement arrangements (IRAs) and other retirement plans, and highlights updates introduced by the SECURE 2.0 Act.

The IRS recently reminded IRA owners aged 70½ and older that they can make up to $105,000 in tax-free charitable donations during 2024 through qualified charitable distributions. For those aged 73 or older, qualified charitable distributions (QCDs) also count toward the year's RMD.

Beware of promoters of fraudulent tax schemes

The IRS warns taxpayers to avoid promoters of fraudulent tax schemes involving donations of ownership interests in closely held businesses, sometimes marketed as “Charitable LLCs.” These promotions often target higher-income filers and are considered abusive transactions by the IRS. Taxpayers should remember they are always responsible for the accuracy of information reported on their tax return.

IRS provides information on 1099-K for third-party settlement organizations

The IRS issued guidance providing transition relief for third-party settlement organizations (TPSOs) regarding reporting transaction requirements during calendar years 2024 and 2025.

Save for retirement now, get a tax credit later

The IRS reminds low- and moderate-income taxpayers that they can save for retirement now and possibly earn a tax credit in 2025 and future years. The Saver’s Credit helps taxpayers offset a portion of the first $2,000 ($4,000 if married filing jointly) they voluntarily contribute to Individual Retirement Arrangements (IRAs), 401(k) plans and similar workplace retirement programs.