ROSS TAX PRO
254-Tax Consultants
Andreaa Chan'nel, MPA
EFIN 748335 · P03215544
ROSS TAX PRO SOFTWARE · 254-Tax Consultants · EFIN 748335
IRS Compliance Updates
Real-time tax law changes, IRS guidance, and regulatory alerts
2025 Federal Income Tax Brackets — Inflation Adjustments
IRS Rev. Proc. 2024-40 adjusts 2025 tax brackets by approximately 2.8% for inflation. Standard deduction increases to $15,000 (single) and $30,000 (MFJ).
2025 Earned Income Tax Credit — Updated Thresholds
EITC maximum credit increases for 2025: $649 (0 children), $4,328 (1 child), $7,152 (2 children), $8,046 (3+ children).
2025 Retirement Contribution Limits — IRA/401(k) Increases
401(k)/403(b)/457 elective deferral limit increases to $23,500. IRA contribution limit remains $7,000 ($8,000 age 50+). SIMPLE IRA limit: $16,500.
Child Tax Credit — 2025 Parameters Unchanged
CTC remains $2,000 per qualifying child under 17. Refundable portion (ACTC) up to $1,700. Phaseout begins at $200,000 (single) / $400,000 (MFJ).
2025 Section 179 Deduction — $1.16M Limit
Section 179 expensing limit for 2025 is $1,160,000 with a phaseout beginning at $2,890,000 of qualifying property placed in service.
2025 Self-Employment Tax — Social Security Wage Base $176,100
Social Security wage base increases to $176,100 for 2025. SE tax rate remains 15.3% (12.4% SS + 2.9% Medicare). Additional 0.9% Medicare surtax on wages/SE income over $200,000/$250,000.
2025 Filing Deadlines — Key Dates for Tax Year 2024 Returns
Individual returns (Form 1040) due April 15, 2025. Extension to October 15, 2025 available via Form 4868. Corporate returns (Form 1120) due April 15, 2025.
2025 Digital Asset Reporting — New Form 1099-DA Requirements
New Form 1099-DA required from brokers for digital asset transactions beginning January 1, 2025. Taxpayers must report all crypto/NFT transactions on Form 8949.
2025 Clean Energy Credits — IRA §25C and §25D Updates
Energy Efficient Home Improvement Credit (§25C): 30% of costs, $1,200 annual cap ($2,000 for heat pumps). Residential Clean Energy Credit (§25D): 30% through 2032.
IRS Penalty Relief — Failure-to-Pay Penalty Waiver Extended
IRS Notice 2024-7 provides automatic penalty relief for taxpayers who owed less than $100,000 in back taxes and were not required to make estimated payments.
FinCEN BOI Reporting — Beneficial Ownership Information
Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act is required for most LLCs, corporations, and similar entities. Deadline: Jan 1, 2025 for existing entities.
ERC Moratorium — IRS Paused New ERC Claims Processing
IRS announced moratorium on new Employee Retention Credit (ERC) claims through at least December 31, 2023. Existing claims face extensive review. Voluntary disclosure program available.
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EFIN 748335 · TY2025