Mixon Tax Law, PLLC

Tax Time Guide: Use Where’s My Refund? tool to track refund status As millions file their 2024 tax returns, the IRS reminds taxpayers to use the "Where’s My Refund?" tool on IRS.gov to track their refund status. Those who file electronically can check their refund status within 24 hours, while paper filers will need to wait about four weeks. The tool is available 24/7 and is a quick, easy way to track refunds without calling the IRS. Taxpayers need their Social Security or ITIN number, filing status, and exact refund amount to use the tool. Most refunds are issued within 21 days, especially when filed electronically with direct deposit. #irsupdates #accounting #taxlaw https://lnkd.in/g6ZWaFVt

Tax documents added to IRS Individual Online Account tool, enhancing services and convenience for taxpayers The IRS has made it easier for taxpayers to file their taxes by adding key information return documents to their IRS Individual Online Account. Starting with Forms W-2 (Wage and Tax Statement) and 1095-A (Health Insurance Marketplace Statement) for tax years 2023 and 2024, these documents will be available in the "Records and Status" tab. This initiative is part of the IRS's ongoing efforts to modernize tax filing. Additional documents will be added in the future. However, only documents issued in the taxpayer's name will be accessible, and state/local tax information won't be available. Taxpayers are encouraged to file on time, even if some documents are missing or incorrect. The deadline for most filers is April 15. https://lnkd.in/g7fkgWD9

Final regs. address resolution of federal tax controversies by Appeals The IRS issued final regulations on the Independent Office of Appeals' role in resolving tax disputes, establishing 24 exceptions to its consideration of cases. Notable exceptions limit Appeals' review of challenges to Treasury regulations or revenue procedures without a federal court ruling. The IRS clarified and defined terms following public comments. These regulations will apply to all Appeals requests after February 14, 2025. https://lnkd.in/gXz9GHQ5

Executive order’s hiring freeze causes IRS to cancel some job offers The IRS has canceled job offers with a start date after February 8, 2025, due to a hiring freeze ordered by President Trump. While offers before this date will proceed, the freeze impacts IRS operations, especially during tax season. Critics, including the National Treasury Employees Union, argue the freeze could hinder staffing and service levels, as retirements may worsen the shortage. Some job offers, like those for tax examiner positions, were rescinded, affecting candidates like Susan Crosthwait and her daughters. https://lnkd.in/gmR44K9K

IRS initiates Fast Track Settlement pilot programs in effort to make Alternative Dispute Resolution faster and easier The IRS has launched three pilot programs to improve its Alternative Dispute Resolution (ADR) options, focusing on Fast Track Settlement (FTS) and Post-Appeals Mediation (PAM). Key changes include offering FTS for individual issues, ensuring executive review of requests, and providing clear denial explanations. A new "Last Chance FTS" pilot aims to increase taxpayer awareness of ADR options. These updates aim to make ADR more accessible and efficient for resolving tax disputes. https://lnkd.in/gzpqerFU

Basis-shifting transaction reporting addressed in final regs. The IRS issued final rules identifying certain partnership transactions that shift asset bases as "transactions of interest" (TOIs), requiring disclosure. These transactions involve related partners shifting property to increase the basis by $10 million or more ($25 million before 2025), reducing taxable income. Changes from proposed rules include a higher threshold, a six-year reporting window, and 90 additional days for filing disclosures. The rules aim to close tax loopholes and improve IRS enforcement of basis-shifting schemes. https://lnkd.in/gPMx8ZQW

National Taxpayer Advocate delivers Annual Report to Congress; flags Employee Retention Credit, Identity Theft Victim Assistance processing delays and calls for adequate funding to improve taxpayer services The 2024 National Taxpayer Advocate Report highlights improvements in IRS services, including faster refunds and reduced wait times, thanks to increased funding. However, it stresses ongoing issues like delays in processing Employee Retention Credit claims and identity theft case resolutions. The report calls for more funding for taxpayer services and IT upgrades and recommends legislative changes, such as setting competency standards for tax preparers and expanding U.S. Tax Court jurisdiction. It also marks the 25th anniversary of the Taxpayer Advocate Service, which continues to advocate for taxpayers' rights. https://lnkd.in/gbxmb8dS

Business standard mileage rate increases for 2025 The IRS has increased the 2025 standard mileage rate for business use to 70 cents per mile, up 3 cents from 2024. Rates for medical and moving purposes remain at 21 cents, and the charitable rate stays at 14 cents. The depreciation portion of the business rate is 33 cents per mile. The maximum automobile cost for fixed-and-variable-rate (FAVR) plans is set at $61,200, down $800 from 2024. Taxpayers can also use actual vehicle expenses instead of using the standard mileage rates. https://lnkd.in/gfN89wWR

IRS Reminds Taxpayers of Common Disaster Relief Deadlines The IRS has extended filing deadlines for taxpayers in disaster areas, with 2023 returns due by February 3, 2025, for individuals in parts of several states and territories, including Louisiana, Vermont, and Texas. Taxpayers in other regions, including Alabama and Florida, have until May 1, 2025, to file both their 2023 and 2024 returns. These extensions apply to individuals and businesses affected by disasters in 2024, but payments for 2023 returns are not eligible for extensions. Special relief is also available for taxpayers in Israel, Gaza, and the West Bank due to terrorist attacks, with a filing deadline of September 30, 2025. https://lnkd.in/gj6xNtSs

Tax season 2025 preview As CPA tax professionals prepare for the 2025 tax season, they must navigate changes from previous laws, including the scheduled sunset of provisions from the 2017 Tax Cuts and Jobs Act (TCJA) at the end of 2025. Key changes include adjustments to tax rates, the return of personal exemptions, and the loss of the qualified business income deduction. Other considerations include updates to required minimum distributions (RMDs), Form 1099-K thresholds, digital asset transaction regulations, and clean energy credits. The IRS’s Direct File program, a new free filing option, adds both challenges and opportunities for tax preparers. Effective practice management and client communication will be essential. https://lnkd.in/gXfeSZee