Inside This Issue

1. IRS selects 18 new IRS Advisory Council members for 2025
2. IRS, Coalition Against Scam and Scheme Threats announce 2025 filing season changes aimed at increasing fraud detection
3. Get answers to your questions using IRS’ new chatbot feature
4. IRS launches Fast Track Settlement pilot programs to make ADR more efficient
5. Wage statements and certain information returns due Jan. 31
6. Treasury, IRS seek feedback on proposed rules and a draft form for certain corporate reorganizations and separations
7. Upcoming webinars for tax professionals
8. News from the Justice Department’s Tax Division
9. Technical Guidance

1.  IRS selects 18 new IRS Advisory Council members for 2025

The IRS this week announced the appointment of 18 new members to the Internal Revenue Service Advisory Council (IRSAC). Established in 1953, the IRSAC is an organized public forum for IRS officials and representatives of the public to discuss a broad range of issues in tax administration. The Council provides the IRS Commissioner and agency leaders with feedback, observations and recommendations. The Council will present its annual report at a public meeting in November. The Chair of the IRSAC this year is Christine Freeland.

Visit Internal Revenue Service Advisory Council on IRS.gov to learn more.

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2.  IRS, Coalition Against Scam and Scheme Threats announce 2025 filing season changes aimed at increasing fraud detection

The IRS and its partners in the Coalition Against Scam and Scheme Threats (CASST) this week announced changes for the 2025 filing season to help protect taxpayers from becoming victims of a scam or scheme and preventing tax professionals from having their credentials compromised.

The changes include a new form involving the Fuel Tax Credit designed to make it harder for taxpayers to be misled into claiming the credit. The IRS is also stepping up review on a variety of “other withholding” claims on Form 1040 that have been targets of scammers. And the IRS is reaching out to taxpayers who have potentially been using “ghost preparers” to prepare tax returns.

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3.  Get answers to your questions using IRS’ new chatbot feature

The IRS recently expanded the availability of chatbot technology to e-Servicessupport to give tax professionals, software developers and transmitters a new way to access answers to frequently asked questions.

The chatbot provides answers to questions such as:

• What is the status of my e-Services Application?
• What is the status of my e-File application?
• Why was my electronically filed return rejected?
• Where do I find information on transmitter control codes?
• What is the status of my electronically filed information return?
• How do I perform software testing?

To access the chatbot, visit our e-Services page on IRS.gov.

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4.  IRS launches Fast Track Settlement pilot programs to make ADR more efficient

Three pilot programs have been announced by the IRS to test modifications to current alternative dispute resolution (ADR) programs. IRS ADR programs are intended to assist taxpayers resolve tax disputes. The pilots focus on Fast Track Settlement (FTS)—a program that allows Appeals to mediate disputes between a taxpayer and the IRS while the case is still within the jurisdiction of the examination function, and Post-Appeals Mediation (PAM), a program in which a mediator is introduced to help foster a settlement between Appeals and the taxpayer.

“The IRS has been revitalizing existing ADR programs as part of IRS transformation efforts in alignment with the IRS Strategic Operating Plan,” said Elizabeth Askey, Chief of the IRS Independent Office of Appeals. “We’re committed to providing taxpayers who wish to resolve their issues without litigation a choice of effective and efficient ADR options as early as possible.”

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5.  Wage statements and certain information returns due Jan. 31

Businesses have until Jan. 31 to file certain information returns and wage statements. The Jan. 31 deadline applies to:

• Employers filing Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration.
• Payers filing Form 1099-NEC, Nonemployee Compensation, with the IRS.

Jan. 31 is also the deadline to:

• Furnish copies of W-2, Form 1099-NEC and other information returns to the recipients. See each form’s filing instructions for the due dates to furnish copies to recipients.

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6.  Treasury, IRS seek feedback on proposed rules and a draft form for certain corporate reorganizations and separations

The Department of the Treasury and the IRS released proposed rules for corporate separations and reorganizations, including reporting requirements for multi-year corporate separations. Additionally, the IRS has posted to IRS.gov a preliminary draft of new Form 7216, Multi-Year Transaction Reporting. The new form will give the IRS the information it needs regarding corporate separations, and these proposed regulations offer thorough, authoritative guidance regarding the Internal Revenue Code provisions addressing corporate mergers and acquisitions transactions. Comments on both the proposed regulations and the new form are due by March 17.

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7.  Upcoming webinars for tax professionals

The IRS offers the upcoming live webinars to the tax pro community:

• Document Upload Tool on Jan. 21 at 2 p.m. ET. Earn up to one continuing education credit (Federal Tax). Visit the webinar’s registration page for more information and to register.
• New Features for Tax Pros: Do Business Faster and Easier with IRS Online on Jan. 23 at 2 p.m. ET. Earn up to two continuing education credits (Federal Tax). Visit the webinar’s registration page for more information and to register.

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8.  News from the Justice Department’s Tax Division

The Justice Department filed a civil injunction suit against a group of Florida tax return preparers seeking to bar them from owning or operating a tax return preparation business and preparing tax returns. The defendants allegedly used several schemes to prepare and file tax returns that improperly inflated their customers’ returns and falsely reduced their taxable incoming, according to the complaint.

Arthur Grimes, a Florida man who used the “Note Program,” a tax fraud scheme, was found guilty of obstructing the IRS and received a 21-month prison sentence. The tax fraud scheme run by tax return preparers Christopher Johnson and Jasen Harvey included Grimes as a co-conspirator. Grimes caused four false income tax returns to be filed as part of the scheme. The bad actors sought refunds totaling $627,587 of which the IRS paid approximately $270,000. 

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9.  Technical Guidance

Announcement 2025-06 implements a pilot program testing changes to Fast Track Settlement programs currently available to taxpayers under examination in the Large Business and International, Small Business/Self-Employed, and Tax Exempt/Government Entities divisions.

Notice 2025-08 modifies the New Elective Safe Harbor for the domestic content bonus credit contained in Notice 2024-41, 2024-24 I.R.B. 1615, by updating the tables in sections 4.04(1)-(3), clarifying the rules and defined terms, reclassifying the Manufactured Products and Manufactured Product Components, and by providing new associated cost percentages for those components.

Notice 2025-09 provides safe harbors regarding the incremental cost and retail price equivalent of certain qualified commercial clean vehicles for purposes of the credit for qualified commercial clean vehicles under section 45W of the Internal Revenue Code.

Notice 2025-12 provides the percentage increase for calculating the qualifying payment amounts for items and services furnished during 2025 for purposes of sections 9816 and 9817 of the Internal Revenue Code, sections 716 and 717 of the Employee Retirement Income Security Act of 1974, and sections 2799A–1 and 2799A–2 of the Public Health Service Act.

Notice 2025-13 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for December 2024 used under section 417(e)(3)(D), the 24-month average segment rates applicable for January 2025, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

Revenue Procedure 2025-06 provides the exclusive procedures for certain applicable entities, as defined in section 6417(d)(1)(A) of the Internal Revenue Code and the regulations thereunder that are not required to file either a federal income tax return under section 6011 or an annual information return under section 6033(a), but previously filed a Form 990-T solely to make an elective payment election under section 6417, to change their annual accounting period.

Revenue Procedure 2025-13 provides a streamlined method by which taxpayers who have elected the application of the alternative tax under section 831(b) may obtain automatic consent of the Secretary to revoke such election by making certain representations.

Revenue Procedure 2025-14 provides the first Annual Table for sections 45Y and 48E.

Revenue Ruling 2025-04 provides guidance regarding the income and employment tax treatment of contributions and benefits paid in certain situations under a state paid family and medical leave program, as well as the related reporting requirements.

Revenue Ruling 2025-05 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate and the adjusted federal long-term tax-exempt rate.

WASHINGTON — The Internal Revenue Service today updated the frequently asked questions in Fact Sheet 2025-01.  

These FAQs supersede earlier FAQs that were posted in Fact Sheet 2024-15, on April 17, 2024.  

The updates to the FAQs contain substantial changes within each section of the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit. 

More information about reliance is available.

Revenue Procedure 2025-06 provides the exclusive procedures for certain applicable entities, as defined in § 6417(d)(1)(A) of the Internal Revenue Code and the regulations thereunder that are not required to file either a federal income tax return under § 6011 or an annual information return under § 6033(a), but previously filed a Form 990-T solely to make an elective payment election under § 6417, to change their annual accounting period.  

Revenue Procedure 2025-06 will be in IRB:  2025-6, dated 2/3/2025.

Notice 2025-13 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for December 2024 used under § 417(e)(3)(D), the 24-month average segment rates applicable for January 2025, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).  

Notice 2025-13 will be in IRB:  2025-6, dated February 3, 2025.

WASHINGTON — The Internal Revenue Service and partners in the Coalition of Scam and Scheme Threats (CASST) today released changes for the 2025 filing season designed to help protect taxpayers from becoming victims of a scam or scheme and preventing tax professionals from having their credentials compromised. 

The changes to protect taxpayers include a new form involving the Fuel Tax Credit that’s designed to make it harder for well-meaning taxpayers to be misled into claiming the credit by promoters. This specialized credit that’s been promoted on social media is designed for off-highway business and farming use. Taxpayers need a business purpose and a qualifying business activity such as running a farm or purchasing aviation gasoline to be eligible for the credit. Most taxpayers don’t qualify for this credit. 

The IRS is also stepping up review on a variety of “other withholding” claims on Form 1040 that have been targets of scammers and schemers. And the IRS is reaching out to taxpayers who have potentially been using “ghost preparers” to prepare tax returns. These preparers don’t identify themselves on the tax return, which is a red flag for taxpayers to be misled into a scam or scheme. 

Convened at the request of IRS Commissioner Danny Werfel, the CASST task force of federal and state tax agencies, software and financial companies, as well as key national tax professional associations, agreed to a new public private partnership in August focused on scams and schemes. 

“Since its creation, this special group across the tax community has been working to take extra steps to protect taxpayers and the tax professional community,” Werfel said. “This effort includes expanding outreach and education on emerging scams, developing innovative approaches to identify potentially fraudulent returns at the point of filing and creating infrastructure improvements to protect taxpayers as well as federal, state and industry tax systems. CASST partners have already worked together on important changes to protect taxpayers and tax professionals in the 2025 filing season, but this needs to be an ongoing effort given the continued expansion and threats from scams.” 

CASST accomplishments that will improve the 2025 tax season 

Highlights of the coalition’s accomplishments include: 

• New Fuel Tax Credit Statement - The IRS developed the “Statement Supporting Fuel Tax Credit (FTC) Computation - 1”, to educate taxpayers on eligibility requirements for claiming the credit. 

Here are key details: 

• Increased Review of “Other Withholding” Claims – To protect taxpayers, the IRS is increasing its review of “Other Withholding” on Line 25C of Form 1040. To reduce potential delays in verifying the “Other Withholding” claimed, taxpayers are encouraged to attach the supporting documentation to their return. Key forms covered by Line 25c, “Other Withholding”, include Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding; Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax; Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests; Form W2G, Certain Gambling Winnings; Form 8959, Additional Medicare Tax; and Schedule K1, Partner’s Share of Income, Deductions, Credits, etc. 

• Increased “Ghost Preparer” Education – During the 2025 filing season, the IRS will send letters to taxpayers whose tax returns appear to have been completed by a paid tax preparer who did not sign or include their Preparer Tax Identification Number (PTIN) on the tax return. The letters are meant to educate the taxpayer about “ghost preparers” and to help the IRS identify those who are being paid to prepare returns and are not signing or including their PTIN on the return. The IRS continues to see instances where ghost preparers dupe taxpayers into filing inaccurate tax returns for bigger refunds. The preparers later vanish like a ghost, leaving the taxpayer exposed to inaccurate claims. 

• Preparer Tax Identification Numbers (PTIN) - During the 2025 filing season, the IRS will be working to add more protections for tax professionals. The protections will be aimed at protecting the tax professional’s Electronic Filing Identification Number or EFIN and PTIN from unauthorized use; more details on these will be available in the near future. 

Stay vigilant 

Threats are present year-round, but the IRS and CASST members anticipate that misinformation spread by influencers and outright scammers will intensify around the 2025 tax season in an effort to persuade the public to take their bad advice. 

Instead of looking to ill-informed information on social media or from shady tax return preparers presenting themselves as reputable tax professionals, a better option for taxpayers is to learn what scams are trending and to speak to a trusted tax professional. 

Additional information on tax scams can be found at Tax Scams, and victims of tax-related identity theft can visit Identity Theft Central. 

Other reliable tax information is available from the following trusted sources:

• Follow IRS social media.
• Visit an IRS walk-in center.
• Talk to a trusted tax professional. 

Pass it on 

The IRS encourages the public to report improper and abusive tax schemes, as well as tax return preparers who knowingly prepare improper returns, including “ghost preparers.” 

To report an abusive tax scheme or a tax return preparer, people should mail or fax a completed Form 14242, Report Suspected Abusive Tax Promotions or Preparers, and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations. 

Mail:

Internal Revenue Service

Lead Development Center MS7900 1973 N. Rulon White Blvd Ogden, UT 84404 Fax: 877-477-9135 

Alternatively, taxpayers and tax professionals may report the information to the IRS Whistleblower Office for possible monetary award. 

Taxpayers can also report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center. The Report Phishing and Online Scams page at IRS.gov provides complete details.

Notice 2025-12 provides the percentage increase for calculating the qualifying payment amounts for items and services furnished during 2025 for purposes of sections 9816 and 9817 of the Internal Revenue Code, sections 716 and 717 of the Employee Retirement Income Security Act of 1974, and sections 2799A–1 and 2799A–2 of the Public Health Service Act. 

Notice 2025-12 will be in IRB: 2025–8, dated 2/18/2025.

WASHINGTON – The Department of the Treasury and the Internal Revenue Service today issued proposed regulations for corporate separations and reorganizations, including reporting requirements for multi-year corporate separations.

In connection with this proposed guidance, the IRS has posted to IRS.gov a draft version of new Form 7216, Multi-Year Transaction Reporting. These proposed regulations provide comprehensive, authoritative guidance with respect to core provisions of the Internal Revenue Code addressing corporate mergers and acquisitions transactions, and the new form will provide the IRS with necessary information with respect to corporate separations.

Treasury and IRS have proposed this guidance to improve the IRS’s ability to administer the rules in the tax law governing the distribution of stock and securities of a controlled corporation, and to ensure that corporate separations satisfy the requirements to qualify for tax-free treatment. The proposed reporting regulations require certain filers to attach the new Form 7216 to their federal income tax return to provide data to the IRS regarding their multi-year corporation separation. Generally, filers would include the distributing corporation, the controlled corporation and certain significant shareholders or security holders of the distributing corporation.

Importantly, the increased reporting requirements under the proposed reporting guidance would enable Treasury and the IRS to provide increased transactional flexibility through the proposed regulations. Examples of this increased transactional flexibility include addressing retentions of controlled corporation stock, monetization transactions and several other significant issues that arise from multi-year transactions.

The IRS intends to follow these proposed regulations when it issues private letter rulings about certain corporate separations. The IRS plans to issue an update to Rev. Proc. 2024-24 to incorporate these proposed regulations into the procedures for requesting such private letter rulings.

Treasury and IRS invite comments on both the proposed regulations and the new form. Commentors are encouraged to use the Federal e-Rulemaking portal to submit comments on both the proposed substantive regulations (users should indicate “IRS” and “REG-112261-24”) and the proposed reporting regulations and related form (users should indicate “IRS” and “REG-116085-23”). However, comments may also be mailed to: CC:PA:01:PR, Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.  Comments are due by March 17, 2025. Interested parties can also use the portal and the address above to provide comments regarding the draft of Form 7216.

Revenue Procedure 2025-13 provides a streamlined method by which taxpayers who have elected the application of the alternative tax under section 831(b) may obtain automatic consent of the Secretary to revoke such election by making certain representations.

WILL BE IN IRB: IRB 2025-8 DATED: 02/18/2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued final regulations identifying certain partnership related-party “basis shifting” transactions as transactions of interest – TOIs – subject to the rules for reportable transactions.

Comments on the proposed rules reflected in the final regulations

Treasury and IRS received comments on the proposed regulations stating that the final regulations should avoid unnecessary burdens for small, family-run businesses, limit retroactive reporting, provide more time for reporting and differentiate publicly traded partnerships, among other suggested changes. The final regulations address these comments and include certain changes reflecting the comments. 

Increased dollar threshold for basis increase in a TOI Treasury and IRS increased the threshold amount for a basis increase in a TOI from $5 million to $25 million for tax years before 2025 and $10 million for tax years thereafter. 

Limited retroactive reporting for open tax years

To address comments on creating an unnecessary burden for taxpayers subject to the disclosure rules of the final regulations, Treasury and IRS limited reporting for open tax years to those that fall within a six-year lookback window. The six-year lookback window is the seventy-two-month period before the first month of a taxpayer’s most recent tax year that began before the publication of the final regulations. In addition, the threshold amount for a basis increase in a TOI during the six-year lookback period is $25 million. 

Additional time for reporting

The final regulations give taxpayers and material advisors more time to file disclosure statements. Taxpayers have an additional 90 days from the final regulation’s publication date to file disclosure statements for TOIs in open tax years for which a tax return has already been filed and that fall within the six-year lookback window. Material advisors have an additional 90 days to file their disclosure statements for tax statements made before the final regulations. 

Publicly Traded Partnerships Because PTPs are typically owned by a large number of unrelated owners, the final regulations exclude many owners of PTPs from the disclosure rules. 

Final Regulations

In June 2024, the Department of the Treasury and the IRS issued proposed regulations that identified certain partnership basis adjustment transactions by related parties as TOIs. Today, Treasury and IRS issued regulations finalizing the proposed regulations, with several important changes, including those described above. 

The final regulations identify certain partnership related-party basis adjustment transactions, and substantially similar transactions, as TOIs. They apply to related partners and partnerships that participated in the identified transactions through distributions of partnership property or the transfer of an interest in the partnership by a related partner to a related transferee. The affected taxpayers and their material advisors are subject to the disclosure requirements for reportable transactions. 

The identified transactions generally result from either a tax-free distribution of partnership property to a partner that is related to one or more partners of the partnership, or the tax-free transfer of a partnership interest by a related partner to a related transferee. The tax-free distribution or transfer generates an increase to the basis of the distributed property or partnership property of $10 million or more ($25 million or more in the case of a TOI undertaken in a tax year before 2025) under the rules of Internal Revenue Code sections 732(b) or (d), 734(b) or 743(b) but for which no corresponding tax is paid. 

The basis increase to the distributed or partnership property allows the related parties to significantly decrease taxable income through increased cost recovery allowances (such as depreciation deductions) or decrease taxable gain (or increase taxable loss) on the disposition of the property subject to the basis increase.

Free File program now open; Direct File available starting Jan. 27 for taxpayers in 25 states

WASHINGTON — The Internal Revenue Service today announced that the nation’s 2025 tax season  will start on Monday, Jan. 27, 2025, and will feature expanded and enhanced tools to help taxpayers as a result of the agency’s historic modernization efforts. 

The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the Tuesday, April 15 federal deadline. More than half of all tax returns are expected to be filed this year with the help of a tax professional, and the IRS urges people to use a trusted tax proto avoid potential scams and schemes. 

The 2025 tax filing season will reflect continued IRS progress to modernize and add new tools and features to help taxpayers. Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS Individual Online Account, more access to dozens of tax forms through cell phones and tablets and expanded alerts for scams and schemes that threaten taxpayers. 

The IRS has also expanded features and availability of last year’s Direct File program. This year, Direct File will be available starting Jan. 27 to taxpayers in 25 states. In addition, the IRS Free File program opens today. Available only on IRS.gov, IRS Free File Guided Tax Software provides millions of taxpayers nationwide access to free software tools offered by trusted IRS Free File partners. 

The IRS is also working to continue the success of the 2023 and 2024 tax filing seasons made possible with additional resources. The past two filing seasons saw levels of service at roughly 85% and wait times averaging less than 5 minutes on the main phone lines, as well as significant increases in the number of taxpayers served at Taxpayer Assistance Centers across the country. Based on the IRS’ current plan and funding levels, the agency will work to provide similar levels of performance on these key service metrics in the upcoming filing season. 

“This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their taxes this tax season,” said IRS Commissioner Danny Werfel. “These taxpayer-focused improvements we’ve done so far are important, but they are just the beginning of what the IRS needs to do. More can be done with continued investment in the nation’s tax system.”  

The Get Readypage on IRS.gov highlights steps taxpayers can take now to streamline the filing process and the many resources available to interact with the IRS before, during and after filing their federal tax return. 

Direct File opens Jan. 27 for taxpayers in 25 states 

On the first day of the filing season, Direct File will open to eligible taxpayers in 25 states to file their taxes directly with the IRS for free: 12 states that were part of the pilot last year, plus 13 new states where Direct File will be available in 2025. During last year’s pilot, Direct File was available in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State and Wyoming. For the 2025 tax filing season, Direct File will also be available in Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin. 

Direct File will include new features this year to make filing taxes quicker and easier. Similar to commercial tax software, a data import tool will allow taxpayers to opt-in to automatically import data from their IRS account, including personal information, the taxpayer’s IP PIN and some information from the taxpayer’s W-2. 

This year, Direct File users can try a new chat bot to help guide them through the eligibility checker. Live chat will again be available in English and Spanish, and users can opt into additional authentication and verification, which will allow customer service representatives to provide more information. 

Also, this year, Direct File will cover more tax situations. During the pilot, Direct File supported taxpayers claiming the Earned Income Tax Credit, Child Tax Credit and Credit for Other Dependents. This year, Direct File will also cover taxpayers claiming the: 

• Child and Dependent Care Credit
• Premium Tax Credit
• Credit for the Elderly and Disabled
• Retirement Savings Contribution Credits 

In addition to covering taxpayers claiming the standard deduction and deductions for student loan interest and educator expenses, this year, Direct File will support taxpayers claiming deductions for Health Savings Accounts. The Treasury Department estimates that more than 30 million taxpayers will be eligible to use Direct File across the 25 states. 

Direct File is a web-based service that works on mobile phones, laptops, tablets or desktop computers. It guides taxpayers through a series of questions to prepare their federal tax return step-by-step. Last year, thousands of Direct File users got help from IRS customer service representatives through a live chat feature in English and Spanish. Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to state tools to complete their state tax filings. 

Free File program opens early; available in English and Spanish 

Although the IRS will not begin accepting tax returns until Jan. 27, taxpayers have several options available now to get a head start on their taxes. 

Starting today, almost everyone can file electronically for free by using IRS Free File, available only on IRS.gov. Now in its 23^rd year, Free File offers free tax preparation software from eight companies in the public-private partnership between the IRS and Free File Inc. As part of this partnership, tax preparation and filing software partners offer their online products to eligible taxpayers for free. To access these free tools, taxpayers must start from the IRS Free Filepage on IRS.gov. 

This year, eight private-sector partners will provide online guided tax software products for taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less in 2024. Additionally, one partner will offer a product in Spanish. 

Although the IRS official tax filing season begins later this month, IRS Free File providers will allow taxpayers to prepare and file returns now and hold them until they can be electronically filed on that date. Many other software companies offer a similar option. 

Other free options to file tax returns 

In addition to Free File and Direct File, the IRS reminds taxpayers there are important programs available to help taxpayers:

• Volunteer Income Tax Assistance/Tax Counseling for the Elderly. Taxpayers can find organizations in their community with IRS certified volunteers that provide free tax help for eligible taxpayers including working families, the elderly, the disabled and people who speak limited English.
• MilTax. A Department of Defense program, MilTax generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.

Highlights of other IRS changes to help taxpayers 

As part of ongoing IRS improvement efforts, the agency is working to build on the success of the 2023 and 2024 filing seasons. 

The IRS is once again working to provide taxpayers expanded help in-person through more hours at Taxpayer Assistance Centers nationwide. The IRS also will be focused on continuing high levels of service on its main taxpayer phone lines, with a goal of up to 85% level of service. 

The IRS also continues to urge taxpayers to visit a trusted tax professional for help with their taxes or visit IRS.gov first. As part of IRS improvement efforts since 2022, the agency continues to add and expand a variety of online tools and services to help people with their taxes. 

Included among the improvements taxpayers will see during the 2025 filing season are: 

IRS Individual Online Account: The IRS continues to add more functionality to this important tool. Individuals can create or access their IRS Online Account at Online Account for individuals. With an IRS Online Account, people can: 

• View key details from their most recent tax return, such as adjusted gross income.
• Request an Identity Protection PIN.
• Get account transcripts to include wage and income records.
• Sign tax forms like powers of attorney or tax information authorizations.
• View and edit language preferences and alternative media.
• Receive and view over 200 IRS electronic notices.
• View, make and cancel payments.
• Set up or change payment plans and check their balance. 

New scam alert available on Individual Online Account: To help protect taxpayers against emerging threats, there’s a new banner on the Online Account homepage that alerts taxpayers of potential scams and schemes, along with a link to their Digital Notices and Letters page to view correspondence sent to them from the IRS. The feature helps to educate taxpayers on common scams and fraudulent efforts to steal taxpayer information and provide taxpayers with more ability to validate the legitimacy of IRS communications. 

Redesigned Notices: The IRS successfully redesigned 284 notices in 2024, exceeding the agency’s 200 notice goal. It is important to note that 200 notices were redesigned and deployed in 2024 and that the 84 additional redesigned notices are in line to be deployed in 2025. All notices will be added to Individual Online Account so taxpayers receiving a specific letter can see them. 

Mobile-Adaptive Tax Forms: Taxpayers can now access 67 forms on cell phones and tablets. The most recent forms feature “save and draft” capabilities, which allow the taxpayer to start a form, save it and return to it later. The addition of save and draft allows for future capabilities, including the ability for multiple spouses to sign a form. 

Virtual assistants to help with refunds, others questions: Whether a taxpayer uses an online tool or calls the IRS, they will experience upgraded help features. During filing season 2025, the IRS will offer voicebot services to all taxpayers calling the IRS for refund information. The voicebot is available in English and Spanish and has helped thousands of callers without the need to wait for the next available representative. Taxpayers will have to authenticate their identity to gain access to their refund information by providing select information from their tax return. 

Last year the IRS began using online chatbots for various functions. These chatbots use either guided help through choice buttons or an open text box for a customized question. The chatbots use natural language processing and understanding to interpret the input from the taxpayer to provide an appropriate response. To launch the chatbot, the taxpayer simply clicks on the “Chat” button in the lower right corner of the webpage. Currently taxpayers can use chatbots from eight webpages. 

Taxpayers should check ‘Where’s My Refund?’ on IRS.gov 

Most refunds are issued in less than 21 calendar days. Taxpayers can use Where's My Refund? to check the status of their 2024 income tax refund within 24 hours of e-filing. Refund information is normally available after four weeks for taxpayers who filed a paper return. Information on Where's My Refund? will update overnight so there is no need to check the tool more than once a day. 

The easiest, safest and fastest way to receive a refund is to file electronically (e-file) and select direct deposit. According to Treasury’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen or uncashed. People should check FDIC and National Credit Union Administration websites if they don’t have a bank account. Veterans can use the Veterans Benefits Banking Program to find participating financial institutions.  

The IRS also notes that starting Jan. 1, 2025, people will no longer be able to buy paper Series I savings bonds with their tax refund. Instead, Series I bonds are available in electronic format in TreasuryDirect.   

Choose a trusted tax professional 

More than half of taxpayers turn to a tax professional for help filing a tax return. While most tax preparers deliver exceptional and professional service, selecting the wrong preparer can lead to financial harm. 

Taxpayers should review the tips for choosing a tax preparer and learn how to avoid unethical “ghost” return preparers. Taxpayers can also use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find trusted professionals. The IRS also reminds taxpayers that choosing someone affiliated with a recognized national tax association is always a good option. 

Tax professionals accepted into the IRS electronic filing program are authorized IRS e-file providers, qualified to prepare, transmit and process electronically filed tax returns.