Revenue Ruling 2025-3addresses the application of Section 530 of the Revenue Act of 1978 (section 530), section 3509 rates, and the requirements to issue a Notice of Employment Tax Determination Under IRC § 7436 (§ 7436 Notice) in several distinct factual situations. Internal Revenue Code section 3509 allows an employer to remit unpaid taxes at reduced rates if an employer fails to deduct and withhold income tax or the employee share of FICA tax with respect to any of its employees because the employer treated that employee as a non-employee.

Revenue Procedure 2025-10modifies and supersedes Revenue Procedure 85-18, 1985-1 CB 518; it clarifies the provisions of Rev. Proc. 85-18 with respect to the definition of employee, the section 530 requirement for the filing of required returns, and the reasonable basis safe harbor rules. This revenue procedure also amplifies the guidelines set forth in section 3.03 of Rev. Proc. 85-18 (interpreting the word “treat” for purposes of determining whether a taxpayer did not treat an individual as an employee for purposes of section 530(a)). This revenue procedure also includes new provisions that reflect statutory changes made to section 530 since 1986 that added sections 530(d), (e), and (f).  Section 530 of the Revenue Act of 1978 (as amended) was enacted to provide relief to taxpayers involved in worker classification disputes with the IRS. Section 530 is not an Internal Revenue Code provision.

Revenue Ruling 2025-3 and Revenue Procedure 2025-10 will be published in Internal Revenue Bulletin 2025-4 on Jan. 21, 2025.

WASHINGTON - The Internal Revenue Service today granted taxpayers an extra day, until Friday, Jan. 10, 2025, to file any return or pay any tax originally due on Thursday, Jan. 9.

 

The IRS granted the extra time following the Dec. 29 Presidential Proclamation marking Jan. 9 as a National Day of Mourning for James Earl Carter, Jr., the thirty-ninth President of the United States.

 

The one-day extension applies to any return required to be filed with the IRS on Thursday, Jan. 9, 2025. It also applies to any required federal tax payment originally due on that day.

 

In addition, it also applies to any federal income, payroll or excise tax deposit due on Jan. 9, 2025, including those required to be made through the Treasury Department’s Electronic Federal Tax Payment System (EFTPS).

The Internal Revenue Service (IRS) has announced several key adjustments for the 2025 tax year, reflecting annual inflation and legislative changes. Here's an overview of the most significant updates affecting federal income tax returns:   1. Standard Deduction Increase   Single Filers: The standard deduction rises to $15,000, up from $14,600 in 2024.   Married Filing Jointly: Increases to $30,000 from $29,200.   Head of Household: Now $22,500, up from $21,900.     2. Adjusted Income Tax Brackets   Tax brackets have been modified to account for inflation. Notably:   The top 37% rate applies to incomes over $626,350 for single filers and $751,600 for married couples filing jointly, up from $609,350 and $731,200, respectively, in 2024.     3. Retirement Contribution Limits   401(k), 403 (b) and 457 Plans: Contribution limits increase to $23,500 from $23,000.   Catch-Up Contributions: Normally $7,500 if over 49, but for individuals aged 60 to 63, a new catch-up contribution limit of $11,250 is introduced, $3,750 higher than the standard catch-up amount.   IRAs  $7,000, plus $1,000 catch-up if over 49   Simple IRAs: Contribution limit increased to $16,500, plus $3,500 catch-up if over 49. (Increased by 10% for employers with fewer than 25 employees). Those age 60-63 can save $5,250 as a catch-up contribution   SEP IRAs: Contribution limit increased to $70,000     4. Earned Income Tax Credit (EITC)   The maximum EITC amount has been adjusted for inflation, providing increased benefits to eligible taxpayers.     5. Annual Gift Tax Exclusion   The exclusion amount rises to $19,000 per recipient, up from $18,000 in 2024, allowing individuals to gift more without incurring tax liabilities.         6. Estate Tax Exemption   The lifetime estate exemption increases to nearly $14 million, up from $13.61 million in 2024, enabling larger transfers of wealth without estate tax implications.     7. Child Tax Credit   The refundable portion of the Child Tax Credit remains at $1,700 for 2025, unchanged from 2024.     8. Mileage Rates   Business Use: 70 cents per mile, an increase of 3 cents from 2024.   Medical Purposes: 21 cents per mile, unchanged from 2024.   Moving Purposes (for qualified active-duty members of the Armed Forces): 21 cents per mile, unchanged from 2024.   Charitable Organizations: 14 cents per mile, unchanged from 2024 (this rate is set by statute). .

Revenue Procedure 2025-11 provides the process under § 48E(h) of the Internal Revenue Code to apply for an allocation of Capacity Limitation as part of the Clean Electricity Low-income Communities Bonus Credit Amount Program for 2025 and subsequent years.

Revenue Procedure 2025-11 will be published in Internal Revenue Bulletin 2025-4, on Jan. 21, 2025.

WASHINGTON — National Taxpayer Advocate Erin M. Collins today released her 2024 Annual Report to Congress, finding overall improvement in IRS taxpayer service but also highlighting persistent challenges, particularly delays in processing Employee Retention Credit (ERC) claims and resolving Identity Theft Victim Assistance cases.

“For the first time since I became the National Taxpayer Advocate in 2020, I can begin this report with good news: The taxpayer experience has noticeably improved,” Collins writes. “In 2024, taxpayers and practitioners experienced better service, generally received timely refunds, and faced shorter wait times to reach customer service representatives…. After receiving multiyear funding, the IRS has [also] made major strides toward improving its taxpayer services and information technology (IT) systems.”

By law, the National Taxpayer Advocate’s report must identify the 10 most serious problems taxpayers face in their dealings with the IRS and make administrative and legislative recommendations to address those problems. Two of the most critical issues are:

Continuing delays in processing Employee Retention Credit claims. As of Oct. 26, 2024, the IRS faced a backlog of about 1.2 million ERC claims, with many claims pending for more than a year. While the IRS has valid concerns about paying ineligible claims, the slow processing time is harming many eligible businesses that are relying on these funds to pay expenses. Additional concerns include lack of transparency for businesses trying to track the status of their claims; confusing disallowance letters that have omitted critical information; the use of audit-like procedures for disallowed claims without standard taxpayer audit protections; and significant delays for businesses whose refund checks were stolen and have waited months or longer to receive replacement checks. After the National Taxpayer Advocate’s report went to press, the Commissioner announced in mid-December he anticipates that approximately 500,000 additional claims will be processed in 2025, but the details and timing of the refunds are still to be determined.

Continuing delays in resolving identity theft cases. For cases closed by the IRS’s Identity Theft Victim Assistance (IDTVA) unit in Fiscal Year 2024, the average time it took the IRS to resolve identity theft cases and issue refunds to the affected victims was almost two years. These delays impacted nearly half a million taxpayers and were even worse than the delays seen in FY 2023, when cases took almost 19 months to resolve. Collins again calls these delays “unconscionable” and recommends the IRS prioritize identity theft case resolution by keeping all IDTVA employees focused on these cases rather than reassigning them to other tasks during the filing season. In addition, she urged the agency to reduce case resolution times to 90 days or less.

Adequate funding for taxpayer services, technology upgrades is critical

In her preface to the report, Collins emphasizes the need for adequate funding to support critical taxpayer services and technology upgrades. She notes that the bulk of the nearly $80 billion in multiyear IRS funding provided by the Inflation Reduction Act (IRA) was allocated for tax law enforcement and has been controversial. She further notes, however, that there has been bipartisan support for the smaller amounts allocated for taxpayer services and IT modernization. Stressing the importance of taxpayer services funding, she urges Congress, if it cuts IRA enforcement funding, not to make commensurate cuts to taxpayer services and IT. Congress should not, Collins urged, “inadvertently throw out the baby with the bathwater.”

The following table shows the original IRA funding total broken out among the IRS’s four budget accounts, highlighting that only 4% of the funding was allocated for Taxpayer Services and only 6% was allocated for Business Systems Modernization (BSM).

Inflation Reduction Act IRS Funding Allocations

IRS Budget Account	Amount Allocated	Percentage of Total
Enforcement	$45.6 billion	58%
Operations Support	$25.3 billion	32%
Business Systems Modernization	$4.8 billion	6%
Taxpayer Services	$3.2 billion	4%
Total	$78.9 billion	100%

 

“I have previously criticized this extreme imbalance in funding priorities, and to improve the taxpayer experience, I have recommended that Congress either provide additional funding for the Taxpayer Services and BSM accounts or reallocate a portion of the Enforcement funding to those accounts. I reiterate that recommendation as the new Congress convenes,” Collins writes.

The report highlights numerous examples of improvements the IRS has made using its multiyear funding. Taxpayer Services funding has enabled the IRS to hire more customer service representatives, allowing the agency to answer nearly 9 million more telephone calls than 2 years earlier and to cut in half the average time needed to process individual taxpayer correspondence from about 7 months to about 3½ months. The IRS has also expanded in-person help at its Taxpayer Assistance Centers, adding evening and weekend service in many locations to accommodate taxpayers who are unable to visit during normal business hours.

BSM funding has supported critical automation improvements, allowing taxpayers to resolve issues without the involvement of an IRS employee. With these improvements, taxpayers can now obtain more information and transact more business with the IRS through their online accounts, use voicebots and chatbots to get answers to many of their questions, submit correspondence to the IRS electronically and communicate with the IRS through secure messaging in pending cases. Furthermore, the IRS now allows taxpayers to submit 30 of the most common taxpayer forms from mobile devices, which is a game-changer for the estimated 15% of Americans who rely solely on their smartphones for internet access.

“With sufficient funding for Taxpayer Services and BSM, I believe the IRS can exponentially build on the improvements of the last two years and produce a tax system that respects taxpayer rights, is world-class, and makes compliance easier, which will likely improve revenue collection as well,” Collins writes.

Most serious taxpayer problems

In addition to ERC and IDTVA processing delays, the report identifies eight other serious taxpayer problems, including the following:

Continuing delays in IRS return processing are frustrating taxpayers and causing refund delays. The IRS receives more than 10 million paper-filed Forms 1040 each year and more than 75 million paper-filed returns and forms overall. Until recently, IRS employees had to manually transcribe the data from those returns into IRS systems. While the IRS has made strides toward automating return processing by scanning more than half of paper-filed returns and forms, it still has a long way to go to digitize all paper. Additionally, e-filed returns are sometimes rejected – nearly 18 million (about 12%) of e-filed Forms 1040 were rejected in the past year. The IRS generally rejects returns flagged by its fraud detection filters, but most rejected returns are valid, requiring taxpayers to jump through additional hoops to resubmit their returns electronically or submit their returns on paper. The report highlights the strain this puts on taxpayers, particularly low-income taxpayers eligible for refundable Earned Income Tax Credit (EITC) benefits. Taxpayer Advocate Service (TAS) recommends the IRS continue its efforts to automate tax processing including digitizing nearly all paper-filed returns by the 2026 filing season and enabling electronic processing of amended tax returns.

Taxpayer service is often not timely or adequate. While taxpayer service improved across the IRS’s three main channels – telephone, in-person and online – significant service gaps remain. The IRS achieved an 88% “Level of Service” (LOS) on its Accounts Management lines during the filing season, but this measure excludes calls directed to telephone lines that fall outside the “Accounts Management” umbrella (30% of all calls in FY 2024), calls where a taxpayer hangs up before being placed in a calling queue, and calls made outside the filing season. Overall, the LOS for all toll-free lines in FY 2024 was just 56%, with only 31% of callers reaching an assistor. Of the 6.2 million calls the IRS received from taxpayers whose returns had been stopped by the IRS’s identify theft filters and who were calling to authenticate their identities, the IRS answered only about 20%. This has left millions of taxpayers without the support they need. TAS recommends the IRS adopt more accurate service metrics and prioritize answering non-Accounts Management telephone lines that serve largely vulnerable taxpayer populations. Among these are the Installment Agreement/Balance Due, Taxpayer Protection Program, and Automated Collection System telephone lines.

Continuing challenges in employee recruitment, hiring, training and retention are hindering the IRS’s ability to achieve transformational change in taxpayer service and tax administration. The IRS faces ongoing difficulties in hiring, training, and maintaining employees. Job postings are not consistently targeted to reach the desired candidates. The agency often takes several months to hire new employees, leading some candidates to accept other offers. New hires require extensive training before they become productive employees, and experienced employees often must be reassigned to train them. Additionally, a Congressional Budget Office study published in 2024 found that federal employees with professional degrees earn almost 29% less than their non-federal counterparts, making it harder for the IRS to compete in the tight job market. TAS recommends the IRS explore alternative recruitment platforms, review pay disparities and implement strategies to improve employee retention.

Legislative recommendations: the “Purple Book”

The National Taxpayer Advocate’s 2025 Purple Bookproposes 69 legislative recommendations intended to strengthen taxpayer rights and improve tax administration. Among the recommendations:

1. Authorize the IRS to establish minimum competency standards for federal tax return preparers and revoke the identification numbers of sanctioned preparers. The IRS receives over 160 million individual income tax returns each year, and most are prepared by paid tax return preparers. While some tax return preparers must meet licensing requirements (e.g., certified public accountants, attorneys and Enrolled Agents), most tax return preparers are not credentialed. Numerous studies have found that non-credentialed preparers prepare inaccurate returns disproportionately, causing some taxpayers to overpay their taxes and other taxpayers to underpay their taxes, which subjects them to penalties and interest charges. Non-credentialed preparers also drive much of the high improper payments rate attributable to wrongful EITC claims. In FY 2023, 33.5% of EITC payments, amounting to $21.9 billion, were estimated to be improper, and among tax returns claiming the EITC prepared by paid tax return preparers, 96% of the total dollar amount of EITC audit adjustments was attributable to returns prepared by non-credentialed preparers. Federal and state laws generally require lawyers, doctors, securities dealers, financial planners, actuaries, appraisers, contractors, motor vehicle operators, and barbers and beauticians to obtain licenses or certifications and, in most cases, to pass competency tests. The Obama, first Trump and Biden administrations have each recommended that Congress authorize the Treasury Department to establish minimum competency standards for federal tax return preparers. To protect taxpayers and the public fisc, TAS likewise recommends that Congress provide this authorization as well as authorization for the Treasury Department to revoke the Preparer Tax Identification Numbers of preparers who have been sanctioned for improper conduct.
2. Expand the U.S. Tax Court’s jurisdiction to hear refund cases. Under current law, taxpayers seeking to challenge an IRS tax-due adjustment can file a petition in the U.S. Tax Court, while taxpayers who have paid their tax and are seeking a refund must file suit in a U.S. district court or the U.S. Court of Federal Claims. Litigating a case in a U.S. district court or the Court of Federal Claims is generally more challenging – filing fees are relatively high, rules of civil procedure are complex, the judges generally do not have tax expertise and proceeding without a lawyer is difficult. By contrast, taxpayers litigating their cases in the Tax Court face a low $60 filing fee, may follow less formal procedural rules, are generally assured their positions will be fairly considered because of the tax expertise of the Tax Court’s judges, even if they do not present their arguments effectively, and can more easily represent themselves. For these reasons, the requirement that refund claims be litigated in a U.S. district court or the Court of Federal Claims effectively deprives many taxpayers of the right to judicial review of an IRS refund disallowance. In FY 2024, about 97% of all tax-related litigation was adjudicated in the Tax Court. TAS recommends Congress expand the jurisdiction of the Tax Court to give taxpayers the option to litigate all tax disputes, including refund claims, in that forum.
3. Enable the Low Income Taxpayer Clinic (LITC) program to assist more taxpayers in controversies with the IRS. The LITC program assists low-income taxpayers and taxpayers who speak English as a second language. When the LITC program was established as part of the IRS Restructuring and Reform Act of 1998, the law limited annual grants to no more than $100,000 per clinic. The law also imposed a 100% “match” requirement, so a clinic cannot receive more in grant funds than it raises from other sources. The nature and scope of the LITC Program have evolved considerably since 1998, and those requirements are preventing the program from expanding assistance to a larger universe of eligible taxpayers. TAS recommends Congress remove the per-clinic cap and allow the IRS to reduce the match requirement to 25%, where doing so would expand coverage to additional taxpayers.
4. Require the IRS to timely process claims for refund or credit. Millions of taxpayers file refund claims with the IRS each year. Under current law, there is no requirement that the IRS pay or deny them. It may simply ignore them. The taxpayers’ remedy is to file suit in a U.S. district court or the U.S. Court of Federal Claims. For many taxpayers, that is not a realistic or affordable option. The report says the absence of a processing requirement is a “poster child” for non-responsive government. While the IRS generally does process refund claims, the claims can and sometimes do spend months and even years in administrative limbo within the IRS. TAS recommends Congress require the IRS to act on claims for credit or refund within one year and impose certain consequences on the IRS for failing to do so.
5. Allow the limitation on theft loss deductions in the Tax Cuts and Jobs Act to expire so scam victims are not taxed on amounts stolen from them. Many financial scams involve the theft of retirement assets. In a typical scam, a con artist may pose as a law enforcement officer, convince a victim that her retirement savings are at risk and persuade the victim to transfer her retirement savings to an account that the scammer controls. Then, the scammer absconds with the funds. Under the tax code, the victim’s withdrawal of funds from a retirement account is treated as a distribution subject to income tax and, if the victim is under age 59½, to a 10% additional tax as well. Thus, the victim may not only lose her life savings but also owe significant tax on the stolen funds. Prior to 2018, scam victims generally could claim a theft loss deduction to offset the stolen amounts included in gross income, but the Tax Cuts and Jobs Act (TCJA) eliminated the deduction. TAS recommends Congress allow this TCJA limitation to expire so the theft deduction is again available in these circumstances.

Research studies

The report contains three TAS research studies offering insight into challenges facing taxpayers and practitioners and recommending ways to improve IRS services and processes.

Identity theft filters and unpaid refunds. A TAS study reviewed tax returns flagged by IRS identity theft filters and found that some legitimate taxpayers were not receiving refunds to which they were entitled. Each year, several million returns claiming refunds are flagged by IRS fraud filters and suspended during processing. The IRS issues one letter to each taxpayer notifying them that they need to authenticate their identities to receive their refunds. If a taxpayer does not respond – whether due to not receiving the letter or misplacing it – the IRS does not follow up and does not issue the refund. This study explored the effect of sending additional letters to a sample of potentially eligible taxpayers who had filed Tax Year 2020 returns and had not responded to the original IRS letter. The study found that more than 7% of recipients of a second letter successfully authenticated their identities, suggesting that thousands of taxpayers may be losing refunds simply because they were not reached. Among other things, TAS recommends the IRS send a follow-up letter if a taxpayer does not respond to the initial letter within 60-90 days.

IRS telephone service performance measures. The IRS typically receives about 100 million telephone calls each year, but its method for measuring service effectiveness, LOS, has been widely criticized for failing to accurately reflect the taxpayer experience. For the 2024 filing season, the IRS reported an 87.6% LOS, but only 32.1% of calls were answered by an employee. TAS reviewed call center operations of other large government agencies and private sector businesses to identify best practice processes and measures. Of the call centers reviewed, the study found the IRS is the only one that uses this LOS measure. By comparison, other call centers in both government and the private sector typically answer a higher percentage of calls and use more comprehensive metrics, such as first contact resolution (FCR) rate. TAS recommends the IRS eliminate or revise its LOS formula to account for total call attempts and calls answered through automation.

Challenges in obtaining Individual Taxpayer Identification Numbers (ITINs). TAS conducted a review of the IRS’s ITIN program and confirmed that the application process is burdensome for taxpayers. ITINs are required for individuals who are required to file U.S. tax returns but are not eligible for a Social Security number, such as foreign workers on temporary visas and nonresidents with U.S.-based income. Overall, several million returns include at least one ITIN each year, and they account for several billion dollars in revenue. The study identified significant taxpayer challenges, including the cost and difficulty of using Certifying Acceptance Agents (CAAs) to verify documents as well as the risk of losing original identity documents (such as passports, birth certificates, driver’s licenses and visas) when submitting ITIN applications by mail. Many applicants are unable to give up these documents for several weeks or run the risk of document loss. The study examined the size and composition of the ITIN population and the IRS’s administration of the program. TAS makes several recommendations to improve the ITIN program, including expanding CAA services in Volunteer Income Tax Assistance sites and addressing recurring issues that lead to the erroneous deactivation of ITINs.

TAS celebrates 25 years of advocacy

This year marks the 25th anniversary of the Taxpayer Advocate Service, which was created by Congress as part of the IRS Restructuring and Reform Act of 1998. After developing an organizational structure, TAS officially launched in March 2000, and over the past quarter century, it has been a strong advocate for taxpayers, ensuring their voices are heard and their rights are protected.

“For 25 years, TAS has served as the ‘safety net’ for taxpayers experiencing problems with the IRS and as Congress’s eyes and ears within the agency on issues of taxpayer rights and taxpayer burden,” Collins writes.

Since inception, TAS has helped more than 5 million taxpayers resolve their account problems, worked hundreds of advocacy projects with the IRS, made hundreds of recommendations to improve the IRS’s administrative practices that the agency has implemented and made hundreds of recommendations for legislative change, many of which Congress has enacted. As TAS celebrates its 25th anniversary, it remains committed to resolving taxpayer account problems and identifying and addressing systemic issues within the IRS to improve the taxpayer experience.

Other report highlights

The report also contains a taxpayer rights and service assessment that presents performance measures and other relevant data, a description of TAS’s case advocacy and systemic advocacy operations, and a discussion of the 10 federal tax issues most frequently litigated in court last year.

Visit TAS’s 2024 Annual Report to Congress for more information.

Related items

• Full Report: 2024 Annual Report to Congress
• Executive Summary
• Purple Book

Subscribe to receive the National Taxpayer Advocate’s blogs about key issues in tax administration in your inbox or visit the TAS website to read her previous blogs. For media inquiries, contact TAS Media Relations at TAS.media@irs.gov or call the media line at (202) 317-6802.

About the Taxpayer Advocate Service

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service that helps taxpayers and protects taxpayer rights. We can offer you free help if your tax problem is causing a financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS or if you believe an IRS system, process or procedure just isn't working as it should. Learn more at Taxpayer Advocate Service or call 877-777-4778. Get updates on tax topics by following TAS on social media at: Your Voice at IRS on Facebook, Your Voice at IRS on X, Taxpayer Advocate Service on LinkedIn, and TASNTA on YouTube.

Attention: AIR Participants - Transmitters, Software Developers and Issuers

 AIR Production environment Start-up 

Due to the National Day of Mourning on January 9, 2025, start-up for Filing Season 2025/Tax Year 2024 AIR Production will now begin on: 

Monday, January 13, 2025, 9:00 a.m. Eastern time

AIR Assurance Testing System (AATS)

The AIR AATS environment will still be available during the Production Shutdown, except for the routine maintenance window that occurs each Sunday.

Please monitor the AIR Operational Status page for any updates

WASHINGTON —The Internal Revenue Service today reminded disaster-area taxpayers who received extensions to file their 2023 returns that, depending upon their location, their returns are due by Feb. 3 or May 1, 2025.

Currently:

• Taxpayers in the entire states of Louisiana and Vermont, all of Puerto Rico and the Virgin Islands and parts of Arizona, Connecticut, Illinois, Kentucky, Minnesota, Missouri, Montana, New York, Pennsylvania, South Dakota, Texas and Washington state have until Feb. 3, 2025, to file their 2023 returns.
• Taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Alaska, New Mexico, Tennessee, Virginia and West Virginia will have until May 1, 2025, to file their 2023 returns. For these taxpayers, May 1 will also be the deadline for filing their 2024 returns and paying any tax due.

Eligible taxpayers are individuals and businesses affected by various disasters that occurred during the late spring through the end of 2024. For extension filers, payments on the 2023 tax year returns are not eligible for the additional time because they were originally due last spring before any of these disasters occurred.

The IRS normally provides relief, including postponing various tax filing and payment deadlines, for any area designated by the Federal Emergency Management Agency (FEMA). As long as their address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra time, without having to ask for it. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area should contact the IRS at 866-562-5227. This also includes workers who assisted with relief activities who are affiliated with a recognized government or philanthropic organization.

Special relief for terrorist attacks in Israel

Taxpayers who live or have a business in Israel, Gaza or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes all 2023 and 2024 returns.

Announcement 2025-5 confirms the suspension of the operation of paragraph 1, subparagraph (g), of Article III of the Convention between the United States of America and the Union of Soviet Socialist Republics on Matters of Taxation, with related letters, signed at Washington June 20, 1973, as it relates to Belarus, by mutual agreement.

Announcement 2025-5 will be published in Internal Revenue Bulletin 2025-04 on Jan. 21, 2025

Notice 2025-07provides temporary relief allowing eligible taxpayers to rely on alternative methods for making an adequate identification, within the meaning of § 1.1012-1(j)(3)(ii), with respect to units of a digital asset held in the custody of a broker.

Notice 2025-07will be published in Internal Revenue Bulletin 2025-5, on Jan. 27, 2025.

Rev. Proc. 2025-09 provides a safe harbor under which a manufacturer, producer, or importer may identify the applicable sales of a designated drug made during a day described in section 5000D(b) by using a safe harbor percentage. It also provides such safe harbor percentage. A manufacturer, producer, or importer may use the safe harbor and safe harbor percentage provided in this revenue procedure until the proposed regulations are finalized or other guidance is published in the Internal Revenue Bulletin or the Federal Register.

 

WILL BE IN IRB: 2025-4 DATED: January 21, 2025