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IRS News and Updates

By July 15, 2025IRS Updates

In today’s fast-paced financial landscape, staying informed about the latest developments from the Internal Revenue Service (IRS) is not just important—it’s crucial for effective financial planning! Dive into these critical updates and noteworthy insights that could transform your financial strategy in 2025. Don’t miss out on what could impact your financial future!

Key Updates from the IRS:

  1. End of Paper Refund Checks
    • Date to Remember: Starting September 30th, 2025, the IRS will stop issuing paper refund checks. If you or your clients still prefer paper refunds, it’s time to switch to direct deposit or another electronic method.
  2. Leadership and Staffing Changes
    • Commissioner Turnover: The IRS is on its fifth commissioner this year, indicating a period of transition and change.
    • Staff Reductions: The agency has faced significant staff reductions, losing around 30% of its workforce since January. This may affect IRS operations and response times.
  3. Funding Fluctuations
    • Budget Cuts: Despite the initial boost from the Inflation Reduction Act, Congress has been reducing IRS funding, impacting their ability to pursue wealthy tax evaders and improve revenue collection.
  4. Regulatory and Modernization Efforts
    • Regulation Review: Owing to past executive orders, the IRS has paused some modernization efforts to review and streamline existing regulations.
    • Security Enhancements: The Department of Government Efficiency (DOGE) conducted a hackathon to ensure the IRS database’s security, showing a commitment to protecting taxpayer information.

Actionable Steps for Taxpayers:

  • Switch to Electronic Refunds: Ensure your tax refunds are set up for direct deposit.
  • Stay Informed: Keep an eye on IRS announcements as staff and budget changes might affect processing times.
  • Enhance Security: Regularly update your financial security measures to protect against vulnerabilities.

Different Perspectives:

  • Impact on Taxpayers: While these changes might seem daunting, they could ultimately lead to more efficient IRS operations in the long run.
  • Challenges for the IRS: Balancing budget cuts with modernization efforts and security enhancements remains a significant hurdle.

 

At Thompson Tax Group LLC, we help real estate investors and small business owners stay ahead of tax changes. Contact us today to ensure you’re prepared for 2025 and beyond!