Tax Tips, Guidance and Warnings from the IRS—What U.S. Taxpayers Need to Know in 2025

The Internal Revenue Service (IRS) recently published three news releases that provide tax tips, guidance, and warnings on several issues for U.S. taxpayers as they prepare their annual returns for 2025. Since the IRS has called out these issues specifically, they are likely to be among the IRS’ top priorities when selecting taxpayers for audits later this year and beyond. Learn more from Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

U.S. Taxpayers Must Report Income from All Sources

In a January 30, 2025 News Release, the IRS reminds U.S. taxpayers that they must report their worldwide income from all sources. The IRS’ News Release specifically references income from:

• Products sold through online platforms;
• Investments;
• Part-time or seasonal work;
• Self-employment; and,
• Services provided through mobile apps.

However, these are far from the only types of income that taxpayers may need to report in 2025. From gig income to gaming and gambling winnings, U.S. taxpayers may need to report various other forms of income as well.

Payment Apps and Other Third Parties Must Report Taxpayers’ Transactions to the IRS

Not only must taxpayers report their income to the IRS, but, in many cases, payment apps and other third parties must report their income to the IRS as well. The IRS discusses the updated 1099-K filing requirements for third-party settlement organizations (TPSOs) in a February 19, 2025 News Release. For the 2024 tax year, TPSOs are required to file Form 1099-K for any taxpayer who conducted more than $5,000 in transactions during the year.

Employers and other companies are required to report individual taxpayers’ income to the IRS as well. While failing to report income to the IRS can be risky in any situation, it can be especially risky if the IRS learns of a taxpayer’s unreported income from a third party.

Hiring a Tax Preparer is Not an Excuse for Non-Compliance with the Internal Revenue Code

In another News Release published on February 3, 2025, the IRS issued a clear reminder that “[t]axpayers are legally responsible for the accuracy of their income tax return, even if someone else prepares it.” At the same time, it cautioned taxpayers to be careful when choosing their tax preparers, noting that “ghost” preparers (who don’t sign their clients’ returns) and tax preparers without a valid Preparer Tax Identification Number (PTIN) are very real concerns in 2025.

The IRS’ News Release also provides some tips for making an informed decision. These include choosing a tax preparer who is available year-round and being skeptical of any tax preparer who does not ask for thorough documentation of income and expenses, among others.

Schedule an Appointment with Virginia IRS Lawyer Kevin E. Thorn

If you have questions or concerns about your federal tax obligations in 2025, Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, can help. To schedule an appointment, give us a call at 703-752-3752 or contact us confidentially online today.