The IRS has announced that the 2025 tax season will open on Monday, January 27, 2025, which is the first day the IRS will accept paper and electronic tax returns. While early processing may occur for some returns, most taxpayers’ processing will begin on or after this date. The IRS is preparing extensively, and tax professionals are urging individuals to secure their preparers early due to a shortage of accounting talent.
Key Points:
- Filing Extensions: Taxpayers can file for an extension before the April 15 deadline to gain an additional six months to file. However, extensions do not extend the time to pay any owed taxes.
- Free Tax Prep Programs: Resources like Free File, VITA (Volunteer Income Tax Assistance), and MilTax are available for eligible taxpayers, including seniors, individuals with disabilities, and military personnel.
- 2024 Filing Insights: The IRS processed more tax returns in 2024 than in 2023, though refunds were smaller. Online visits to IRS.gov increased by 10%.
Challenges and Updates:
- Talent Shortages: The accounting field faces rising costs and fewer professionals, impacting tax preparation availability.
- Legal Developments: Notable Supreme Court cases like Moore and Loper Bright addressed significant tax law implications, including corporate income attribution and agency regulation powers.
- Policy Outlook for 2025: Discussions continue about extending the Tax Cuts and Jobs Act (TCJA), increasing the SALT deduction cap, and managing the federal deficit.
Upcoming Deadlines and Events:
- January 15, 2025: 4th quarter estimated payments due.
- April 15, 2025: Tax filing and payment deadline.
- Other Extensions: Specific deadlines for taxpayers in disaster-affected areas.
Trivia:
The first Tax Day for U.S. taxpayers in the modern era was March 1, 1914, later moved to April 15 in 1955.
For tax news, tips, and resources, taxpayers are encouraged to stay informed and engage with tax professionals early.
