Forbes - What To Know About The Not-So-Usual 2025 Tax Season
The podcast covers significant changes in the 2025 tax filing season, including a hiring freeze at the IRS and the nomination of a new commissioner. President Trump's executive orders could impact IRS operations and tax policies, including a hiring freeze and a shift in global tax agreements. The podcast also discusses the Corporate Transparency Act and its legal challenges, affecting beneficial ownership reporting. Additionally, it highlights trends in the tax and accounting industry, such as private equity investments and the expansion of accounting firms into legal services. The episode concludes with tax trivia and insights into filing statistics and new tax regulations for expatriates.
Key Points:
- IRS hiring freeze may delay tax return processing.
- Trump's executive orders could change global tax policies.
- Corporate Transparency Act faces legal challenges.
- Private equity is investing in tax and accounting firms.
- KPMG is expanding into legal services.
Details:
1. 🎙️ Introduction & Major Tax Changes
- The 2025 tax filing season starts on January 27, with IRS accepting returns for 2024. However, IRS News has not been updated, highlighting potential changes and challenges.
- Former IRS Commissioner Danny Wle resigned effective January 20, 2025, with Billy Long, lacking tax expertise, nominated as his replacement.
- President Trump signed executive orders mandating federal employees return to office full-time, potentially causing IRS staff shortages, as only about 83,000 are employed.
- A federal hiring freeze impacts the IRS until lifted by the Treasury Secretary, which could delay processing and refunds.
- New trade policies under America First Trade and a potential External Revenue Service for foreign trade revenues have been announced.
- Trump's directive to exit the global tax agreement, which includes a 15% minimum corporate tax, adds uncertainty.
- An order ending birthright citizenship under certain conditions may affect tax and estate planning, though legal challenges are expected.
2. 📜 Executive Orders & Their Impacts
- The Supreme Court's stay on a Texas ruling permits the continuation of the Corporate Transparency Act (CTA), which mandates companies to report beneficial ownership, though ongoing legal challenges remain.
- Businesses must report beneficial owners to FinCEN if created or registered in the US, with 23 exemptions including publicly traded companies and certain non-profits, indicating a broad yet targeted scope.
- A preliminary injunction from a US District Judge in Texas currently prevents nationwide enforcement of these requirements by FinCEN, pausing the CTA's rollout and affecting compliance timelines.
- Despite the Supreme Court's decision, the injunction offers businesses temporary reprieve from immediate compliance, emphasizing the need for strategic planning amid legal uncertainties.
3. ⚖️ Supreme Court & Corporate Transparency Act
3.1. Taxation Insights on Child Support
3.2. Taxation Insights on Alimony
4. 📈 Tax Filing Stats & IRS Updates
4.1. Tax Filing Statistics for 2025
4.2. IRS Regulations on Gifts from Former Citizens
5. 🔎 Tax Trends & Economic Insights
- Private equity's investment in tax and accounting sectors is highlighted by Inflection's minority investment in Baker Tilly Netherlands, reflecting a growing interest in these industries.
- KPMG's strategic expansion into the legal sector is marked by KPMG Law US's application to the Arizona Supreme Court to operate as an alternative business structure, aligning with recent regulatory changes.
- The Global Economic Conditions Survey reveals a notable decline in confidence among accountants and CFOs, reaching its lowest level since Q2 2020, based on responses from over 1,800 finance professionals.
- The Mississippi House's approval of a bill to phase out state income tax over ten years, contingent on Senate approval, reflects potential shifts in state financial strategies amid possible federal support reductions.