Key Tax Updates for 2025

1.24.25  |  Business,Tax

New Year, New Updates: Stay informed with the latest tax updates and strategies. Our team at Haefele Flanagan is here to help you navigate the changes and make informed decisions for 2025.

BOI Reporting Still on Hold: A federal court injunction halting enforcement of beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) remains in place despite a Supreme Court ruling in a related case. The Supreme Court issued a stay in Texas Top Cop Shop, Inc. v. Garland, potentially allowing BOI filings to begin, but a separate case, Samantha Smith and Robert Means v. U.S. Department of Treasury, is unaffected. The injunction in this second case, based on different legal arguments, postpones BOI enforcement until the lawsuit concludes.

Cryptocurrency Reporting Regulations: The IRS finalized rules requiring decentralized finance (DeFi) brokers to report digital asset transactions on Form 1099-DA. Implementation is delayed until January 1, 2027, to allow stakeholders to adapt. Accountants have expressed concerns about the potential for inaccurate reporting and a steep learning curve.

Trump’s Tax Agenda: President-elect Donald Trump aims to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) set to expire. Efforts include revisiting state and local tax (SALT) deduction caps, with bipartisan support to adjust the $10,000 cap.

IRS Updates:

1. Accounting Method Changes: Expanded waivers under Revenue Procedure 2025-08 allow more flexibility for changes involving research or experimental expenses for tax years 2022–2024.

      2. Technological Competency for Tax Professionals: Proposed updates to Circular 230 include requiring tech proficiency, revising standards for appraisals, and regulating fee arrangements.

      3. Mileage Rate Adjustments: The 2025 standard mileage rate for business use increases to 70 cents per mile, while other rates remain unchanged. The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.

      • 70 cents per mile driven for business use, up 3 cents from 2024
      • 21 cents per mile driven for medical purposes, the same as in 2024
      • 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year
      • 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024

      Tax Relief for Individuals and Businesses in Southern California: Taxpayers affected by wildfires and straight-line winds that began on Jan. 7, 2025 now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. The IRS is offering relief to any area designated by the Federal Emergency Management Association (FEMA). Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief. The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the tax relief disaster situations page on IRS.gov.

      Looking Ahead: Tax professionals anticipate increased regulatory complexity in 2026, including heightened IRS scrutiny of high earners, adjustments to clean energy credits, and evolving implementation of existing laws.

        These changes underscore the importance of staying informed about new regulations. Reach out to your accounting professional if you have questions.

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