Federal Tax Updates IRS Upheaval: Staff Cuts, BOI Updates, and Filing Season Insights
Feb 24, 2025
The hosts dive into the upheaval at the IRS with staffing changes and the impact of upcoming Beneficial Ownership Information reporting requirements. They break down new 1099-K reporting thresholds, clarifying how to navigate various transactions. Current legislative proposals are analyzed, alongside insights into common misconceptions taxpayers have about income and deductions. They also tackle practical challenges faced during tax season and share tips for addressing client inquiries effectively.
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Tax Reform Approaches Diverge
- The House and Senate are pursuing different tax reform strategies, with the House aiming for a single bill and the Senate working on two.
- This difference in approach, combined with the looming March 14th government funding deadline, creates uncertainty about the future of tax reform.
IRS Workforce in Flux
- The IRS faces significant workforce changes due to budget cuts, impacting newly hired and retiring staff.
- These changes raise concerns about the agency's ability to function effectively and modernize its technology.
BOI Reporting: Hurry Up and Wait
- Despite ongoing uncertainty around beneficial ownership information (BOI) reporting, continue gathering necessary information.
- Be prepared to act quickly if the situation changes, but expect potential delays and further modifications.