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The IRS has published its “Dirty Dozen” tax scams for 2025. Ranging from email schemes to misleading tax credits, many of the scams increase during filing season as individuals prepare their tax returns. However, these crimes can occur throughout the year as fraudsters look for ways to steal money, personal information and data. A growing concern this year involves incorrect tax information on social media platforms that can mislead taxpayers with bad advice, potentially leading to identity theft and tax problems. Rather than turning to social media, the IRS is urging taxpayers to follow trusted advice from tax professionals. Indeed, contact us with questions and to prepare your tax return. Want to understand our methodology? Visit us at www.xqcpahouston.com.

International Women's Day (IWD) is celebrated annually on March 8. While it was officially recognized by the United Nations in 1977, its origins trace back to early 20th-century labor movements advocating for women's rights. The theme for IWD 2025 is "For ALL Women and Girls: Rights. Equality."

In his address to Congress on March 4, 2025, President Trump called on lawmakers to include several of his tax campaign promises in the budget plan currently being negotiated. Specifically, he asked them to eliminate income tax on Social Security benefits, tips and overtime pay. He also proposed allowing buyers of American-made vehicles to deduct auto loan interest. These breaks would be in addition to extending most of the 2017 Tax Cuts and Jobs Act provisions. The Republican-led U.S. House has passed a budget resolution that authorizes $4.5 trillion in cuts. But that proposal is expected to increase the deficit significantly. Want to learn more TAX tips and tricks, visit https://bit.ly/3QGTaz4.

On March 5, 2025, President Trump announced a month-long pause in imposing tariffs on vehicles and vehicle parts shipped from Canada and Mexico to the United States. A 25% tariff that became effective on March 4 triggered retaliatory tariffs from Canada and threats of tariffs from Mexico. But the president has said the one-month reprieve is intended to appease the concerns of large U.S. automakers (not foreign trading partners), which rely on Canadian and Mexican vehicles and parts. A Trump spokesperson said he wants carmakers to move factories and jobs back to this country by April 2, when the suspended tariffs will again go into effect.

The IRS is reportedly making plans to cut up to half of its workforce. The tax agency will do this through a combination of layoffs, attrition and incentivized buyouts. The IRS currently employs approximately 90,000 workers, according to its latest data. Nearly 7,000 probationary workers with one year or less of service were let go in February. The mass layoffs of federal workers are part of President Trump’s efforts, through the Department of Government Efficiency, to root out perceived fraud, waste and abuse in the federal government.

On March 4, President Trump’s 25% tariffs went into effect for goods produced in Canada and Mexico. Trump also doubled the tariff on products from China to 20% (on top of other existing tariffs). Canada and China retaliated by announcing their own tariffs on American imports. Canadian Prime Minister Justin Trudeau said he’ll immediately enact a 25% tariff on $20.7 billion of U.S. goods, followed by an additional $86.2 billion in 21 days. China enacted 15% tariffs on chicken, wheat, corn and cotton imports from the U.S. It also enacted a 10% tariff on goods including soybeans, pork, beef, fruits, vegetables and dairy products. Mexico plans to announce retaliatory tariffs soon. Subscribe to get more updates!

The U.S. Treasury Dept. announced it won’t enforce fines and penalties associated with the beneficial ownership information (BOI) reporting rule under the Corporate Transparency Act. This applies to domestic reporting companies and their beneficial owners. The Treasury also noted its intention to narrow the scope of the BOI rule to foreign companies only. After several court cases, businesses had until March 21 to file BOI reports. Now they don’t need to worry about the deadline. U.S. Treasury Secretary Scott Bessent said the “action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations. …” Here’s more: https://bit.ly/3XsFNGF. Need help for BOI reporting, contact us at https://bit.ly/3QGTaz4.

Republicans in Washington want to extend most expiring Tax Cuts and Jobs Act (TCJA) provisions affecting businesses, individuals and estates. The nonprofit Tax Foundation has weighed in on the cost. Its analysis (https://bit.ly/43nacKt ) found that if TCJA provisions are permanently extended, long-term economic output would increase by 1.1%. But, the analysis states, tax revenues would decrease by $4.5 trillion over a 10-year span and debt-to-GDP would increase significantly by 2060. The nonpartisan Committee for a Responsible Federal Budget generally concurs that “long-term economic benefits of permanency would likely be more than countered by the long-term economic costs of higher debt.”

If your employer offers a 401(k) plan, contributing to it is a smart way to build a nice nest egg. Consider increasing the amount in 2025 if you’re not already contributing the maximum allowed. With a 401(k), an employee elects to have a certain amount of pay deferred and contributed to a plan by an employer on his or her behalf. The 2025 contribution limit is $23,500. Employees age 50 or older by year end are also generally permitted to make additional catch-up contributions of $7,500. However, under a law change that becomes effective in 2025, 401(k) plan participants of certain ages can save more. The catch-up contribution amount for those who are age 60, 61, 62 or 63 in 2025 is $11,250. Interested to learn more strategies? Visit www.xqcpahouston.com.

What should you do if you receive a tax refund that’s more than you’re entitled to? Or what if you receive one that you’re not entitled to? Handling these situations largely depends on the details. A paper check refund should be voided and returned within 21 days of receipt to the address in the link below. But suppose you cashed the check. In that case, submit a personal check within 21 days to that address. If the refund was by direct deposit, contact your bank to have them return the deposit. Also, contact the IRS at the phone number in the link. A check for an amount different than expected should include a brief explanation. For more information: https://bit.ly/4bIFVXW. If you need to speak with a Tax Professional, call us at 832 295 3353 or visit us at xqcpahouston.com