eBook: The OBBB Just Passed

Download today to The One Big Beautiful Bill Act: A Tax Planning Revolution for Accounting Firms

Inside, You’ll Discover:

 ✓ How 100% permanent bonus depreciation creates immediate six-figure savings opportunities for your business clients
✓ The new QBI deduction thresholds that make pass-through entities more attractive than ever (and how to maximize the benefits)
✓ Why the temporary SALT cap increase to $40,000 creates a 5-year planning window you can't afford to miss
✓ The retroactive R&D expense deduction that could generate massive refunds for qualifying businesses back to 2022
✓ How to leverage Section 1202 QSBS modifications for clients considering business exits
✓ The exact ROI Method™ to price your tax planning services at $4,800+ (instead of $218 for tax prep)
✓ Real examples of how combining OBBA strategies creates exponential tax savings for clients

The IRS recently updated the mailing addresses where certain tax forms for certain states should be filed. Please ask your SLs and STAs to inform their tax pro stakeholders and other stakeholders as appropriate.

Some mailing addresses for the following forms were updated:

•           1040

•           1040-SR

•           1040-ES

•           4868

•           940

•           941

•           943

•           944

•           945

Most pages on IRS.gov now seem to reflect the correct addresses, but the latest revision of Publication 3891 has not yet been posted. Therefore, please share the attached version of the Publication 3891 rather than linking to the version on IRS.gov for now.

Please share as appropriate, especially on your website

IRS also appreciate any feedback, concerns, or issues that will help us improve our services….

Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act

The U.S. Department of the Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on “Strengthening American Leadership in Digital Financial Technology.” This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring. As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools.

Treasury News Release: https://home.treasury.gov/news/press-releases/sb0228

Federal Register Notice: https://www.federalregister.gov/documents/2025/08/18/2025-15697/request-for-comment-on-innovative-methods-to-detect-illicit-activity-involving-digital-assets

1.  IRS Nationwide Tax Forum: Designed for the Tax Pro

Time is running out to register for the largest and longest-running IRS education and outreach program designed specifically for tax professionals -- the IRS Nationwide Tax Forum. The Tax Forum provides an unparalleled opportunity to learn from experts, connect with IRS officials and gain valuable insights into the world of tax.

Our expert-led seminars, workshops and networking events are tailored to the needs of tax professionals at all levels of expertise, ensuring you have the knowledge and tools you need to excel in your career.

Attendees can also meet dozens of exhibitors in the Tax Forum Expo Hall, attend a Monday evening Practice Management session and network with colleagues.

Registration is still available for Orlando (Aug. 26 – 28) and Baltimore (Sept. 9-11). To register, visit IRS Nationwide Tax Forum today.

IR-2025-83, Aug. 12, 2025

WASHINGTON —In the fourth installment of a special summer series, the Security Summit partners today remind tax professionals and taxpayers about the IRS Identity Protection PIN and the IRS Online Accounts that can help protect against tax-related identity theft. The IRS and Security Summit also remind tax professionals that using multi-factor authentication is a best practice and a federal requirement to protect clients’ sensitive information.

The IRS Identity Protection PINs, also referred to as IP PINs, are a critical defense tool against identity thieves. The IRS encourages all tax pros and taxpayers to establish an  IRS Online Account that allows secure access to IRS account information online. This account also guards against fraudsters from attempting to create accounts on their behalf.

What Tax Pros should know about MFA  

A key part of tax professional security now focuses on MFA, which strengthens account security by requiring more than just a username and password to confirm an identity when accessing any system, application or device. Key points include:

• All tax professionals are required to use MFA to protect clients’ sensitive information under the Federal Trade Commission’s (FTC) safeguards rule.
• Authentication factors include something only a user knows, like a username and password; something they have, like a token or random number sequence sent to their cell phone; or something unique, like biometric information.
• These factors assure that a tax professional’s client, not an impostor, is gaining access.
• MFA helps protect against phishing, social engineering and other technology attacks that exploit weak or stolen passwords.
• MFA best implementation practices include:         

In addition, MFA should be used to secure client information on a tax pro’s computer or network and to access client information stored within their tax preparation software. MFA is required by law for all companies – not just tax professionals. The size of the company does not matter. Failure to use MFA in tax prep software violates the FTC safeguards rules.

IP PIN facts and how to get one  

Here are a few key things taxpayers and tax professionals should know about the IP PIN:

• It’s a six-digit number known only to the taxpayer and the IRS.
• The opt-in program is voluntary, though strongly encouraged.
• The IP PIN is valid for one calendar year; a new IP PIN is generated yearly.
• Only taxpayers who can verify their identities may obtain an IP PIN.
• IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN.
• Tax professionals cannot obtain an IP PIN on behalf of clients; taxpayers must obtain their own.
• To obtain an IP PIN, visit the IRS Get an IP PIN page.
• The IP PIN process for confirmed victims of identity theft remains unchanged, and victims will automatically receive an IP PIN each year.

IRS Online Account and Tax Pro Account

In addition to enrolling in the IP PIN program, the IRS encourages taxpayers to establish an IRS Online Account and tax professionals to create their Tax Pro Account.

IRS Online Account

• Provides secure online access to IRS account information.
• Helps prevent fraudsters from creating a false account.
• Allows taxpayers to share information with a trusted tax professional.

Tax Pro Account

• Offers secure management of active client authorizations.
• Enables submission of authorization requests directly to a taxpayer’s IRS Online Account.
• Allows requests for power of attorney or tax information authorization from clients.

These tools help protect against the threat of tax-related identity theft for taxpayers and tax professionals alike. Learn more at Tax Pro Account.

Security Summit and the Nationwide Tax Forums

The “Protect Your Clients, Protect Yourself" summer series is part of an annual education effort by the Security Summit. This group includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud.

Security is a key focus of the Nationwide Tax Forum, which is being held in five cities this summer throughout the U.S. In addition to the series of five news releases, tax professional security will be featured at the forums, which are three-day continuing education events. The remaining forums are Aug. 26 in Orlando, Sept. 9 in Baltimore and Sept. 16 in San Diego. 

The IRS reminds tax pros that registration deadlines are quickly approaching for several forums, which can sell out.

Tax professionals should also stay connected to the IRS through subscriptions to e-News for tax professionals and IRS social media sites.

Washington, D.C.—On August 8, 2025, President Trump removed Billy Long, the former auctioneer and congressman, from his position as IRS Commissioner. Mr. Long’s tenure as IRS Commissioner ended just two months after he was confirmed for the post. Treasury Secretary Scott Bessent, the seventh individual to lead IRS, will serve as acting commissioner until the administration finds and confirms a new commissioner. While Mr. Long had previously told tax practitioners last month that the IRS tax filing season for 2025 returns would start late next year, he then retracted this statement in a subsequent post.    Mr. Long’s departure increases the IRS management turmoil that has rocked the agency since Danny Werfel, former President Biden’s IRS commissioner, left office in January 2025. The IRS, faced with writing the rules for and providing information about the new tax law changes, has lost more than 25,000 people since President Trump took office.

Dear Client, On July 4, 2025 the President signed the new 2025 Tax Bill, known as the One Big Beautiful Bill Act or OBBB. There are tons of rumors going around about what changes and what doesn’t, but here is the correct information that will affect you and most Americans. Deductions, Brackets and Rates Tax rates did not increase or decrease from 2025. I know what you have read, but they are the same in 2025 that they were in 2024, and that includes capital gains rates. Tax brackets increased slightly, meaning that you can make a bit more money this year without going into a new bracket. There are two types of deductions: the standard deduction (which did increase by about $3,000 for a married couple from 2024); and itemized deductions. All Americans are allowed the standard deduction, which for 2025 is $15,750 if single and $31,500 if married. If you are able to come up with more than that from a short list of itemized deductions, you are allowed to deduct more than the standard deduction. There are five main categories of allowable itemized deductions: 1. Medical deductions which did not change from 2024, and need to be pretty large in order to deduct them; 2. Taxes, which increased to a maximum deduction of $$40,000 in 2025 vs. $10,000 in 2024. This category includes property tax and state and local income tax paid; 3.  Interest paid on your home mortgage, which is unchanged from 2024; 4.  Charitable contributions, which are unchanged from 2024 5.  Miscellaneous itemized deductions, which are also unchanged from 2024, the only significant one is gambling losses. There is a new deduction for seniors which allows an additional deduction of $6,000 for each filer that has reached age 65 by December 31, 2025 ($12,000 if both 65), in addition to the normal small additional senior deduction. The bad news is that Social Security is still taxable if the deduction is not enough to offset it, and the deduction phases out for seniors making more than $75,000 for a single filer or $150,000 for a joint filer. Car Loan Interest Deduction There is also a new deduction this year for car loan interest if you bought a new (not used) car in 2025 (and 2026-2028) if it was assembled in the US. This deduction phases out starting at $100,000 of income if single, and $200,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize. Tip Deduction For those folks whose W-2 reflects tip income, or who self-report tip income, they can deduct the lesser of the tip income from their W-2’s or $25,000. This deduction phases out starting at $150,000 of income if single, and $300,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize. Overtime Deduction For those folks whose W-2 reflects overtime pay income they can deduct the lesser of the overtime income from their individual W-2’s or $12,500 each. This deduction phases out starting at $150,000 of income if single, and $300,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize. Tax Credits The credit for children reported as dependents on your returns increases from $2,000 to $2,200. The credit for an electric car ends on September 30, 2025, and the credits for insulation, storm windows, doors, furnaces, water heaters, solar power, geothermal energy and wind energy systems end on December 31, 2025. There are a number of individual changes that go into effect in 2026, but this short summary addresses 2025 individual tax changes. We are able to help you plan for any major tax events such as these law changes, retirement, home sales or inheritances if you would give us a call for an appointment.  Sincerely, Tax Professional

Notice 2025-28 informs taxpayers of the intention of the Department of the Treasury and the Internal Revenue Service to partially withdraw proposed regulations and issue revised proposed regulations regarding the application of the Corporate Alternative Minimum Tax (CAMT) to applicable corporations with financial statement income (FSI) attributable to investments in partnerships.  In addition, the notice provides interim guidance primarily on simplified methods to determine an applicable corporation’s adjusted financial statement income (AFSI) with respect to an investment in a partnership, reporting by partnerships of information needed to compute ASFI, and rules for partnership contributions and distributions.

Notice 2025-28 will be in IRB 2025-34, dated Aug. 18, 2025.

Issue Number:    FS-2025-03

Inside This Issue

One Big Beautiful Bill Act: Tax deductions for working Americans and seniors

Note: This Fact Sheet has been updated July 25 by adding to the section on “No Tax on Car Loan Interest” new language describing the requirement for “Final assembly in the United States.” 

Below are descriptions of new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025.

“No Tax on Tips”

• New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.
• • “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing.
  • Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
• • Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible.
  • Taxpayers must:
  • • include their Social Security Number on the return and
    • file jointly if married, to claim the deduction.
• Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.
• Guidance: By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.
• • The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.

“No Tax on Overtime”

• New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a
• • Form W-2, Form 1099, or other specified statement furnished to the individual.
  • Maximum annual deduction is $12,500 ($25,000 for joint filers).
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
• • Taxpayers must:
  • • include their Social Security Number on the return and
    • file jointly if married, to claim the deduction.
• Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.
• Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.

“No Tax on Car Loan Interest”

• New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.)
• • Maximum annual deduction is $10,000.
  • Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
• Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is:
• • originated after December 31, 2024,
  • used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify),
  • for a personal use vehicle (not for business or commercial use) and
  • secured by a lien on the vehicle.

If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.

• Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States.
• Final assembly in the United States: The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer's premises. Alternatively, taxpayers may rely on the vehicle’s plant of manufacture as reported in the vehicle identification number (VIN) to determine whether a vehicle has undergone final assembly in the United States.
• • The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) provides plant of manufacture information. Taxpayers can follow the instructions on that website to determine if the vehicle’s plant of manufacture was located in the United States.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
• • The taxpayer must include the Vehicle Identification Number (VIN) of the qualified vehicle on the tax return for any year in which the deduction is claimed.
• Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year.
• Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements.

Deduction for Seniors

• New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
• • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
  • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
• • Taxpayers must:
  • • include the Social Security Number of the qualifying individual(s) on the return, and
    • file jointly if married, to claim the deduction.

Designated Officials must revalidate their Business Tax Account by July 29 or risk losing access

FS-2025-04, July 23, 2025

The Internal Revenue Service reminds Business Tax Account (BTA) users that Designated Officials must revalidate their accounts by the July 29 deadline in order to maintain access.

Designated Officials who do not revalidate their accounts by July 29, 2025, will need to request access to the account again, either as a Designated Official or other user type.

Revalidation requires a W-2 for the most recent tax filing year or proof that they can legally bind an entity for tax purposes.

To revalidate, Designated Officials must log in to their BTA account.

What features will be added to BTA in the future?

 

When fully developed, BTA will be a robust online self-service tool allowing many types of business taxpayers and other entities to check their tax history, make payments, view notices, authorize powers of attorney and conduct other business with the IRS.

 

For more information visit Business Tax Account, view the Business Tax Account Overview video or review Publication 5904, Access Your Business Tax Account