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The IRS is phasing out paper refund checks starting late 2025, so most refunds will arrive via direct deposit.

A SIMPLE PRE-SEASON CHECKLIST

Create or log in to your IRS online account. This offers a secure way to view prior filings, track payments, and access tax transcripts.

Gather and organize key documents, including W-2s from all employers, 1099s, bank account and routing info for refunds, and records.

Review any changes, such as a new job, marriage, children, or home purchase that might affect deductions, withholding, or credits.

Set up direct deposit or confirm your account information.

Keep organized records of deductions, receipts, charitable donations, education or medical expenses and other documentation that supports credits and deductions.

Consider using e-filing or trusted tax software or professionals, once forms are ready, to speed refund processing and reduce errors.

For further information, please do not hesitate to reach out to any of our representatives at (817) 803-3154.

Send a message to learn more

Current IRS Rule for 2025

Under the One Big Beautiful Act (OBBBA), the IRS reinstated the old threshold for 1099-K reporting:

* More than $20,000 in gross payments AND more than 200 transactions on a single platform.

* This applies to third-party settlement organizations (TPSOs) like PayPal, Venmo, Cash App, eBay, Etsy, etc.

* Payment card processors (credit/debit cards) must issue a 1099-K regardless of the amount.

Key Deadlines

* Platforms must send Form 1099-K to taxpayers by January 31, 2026.

* They must file with the IRS by March 31, 2026, if e-filing (Feb 28 if paper).

Important Points

* Taxable income must be reported even if you don't receive a 1099-K. The form is just an information return.

* Personal transfers (gifts, reimbursements) are not taxable if correctly marked as non-business.

* Keep records of gross receipts, fees, and refunds because 1099-K reports gross, not net.

For further details regarding the recent tax changes, please do not hesitate to reach out to us at your convenience.

PREVENT IDENTITY THIEVES from filing fraudulent tax returns using your personally identifiable information.

The IRS recommends taxpayers' sign up to get an IP PIN. The IRS has made this program available to all taxpayers who can verify their identity.

By obtaining an IP PIN, a taxpayer can get extra protection when filing their federal tax return.

What is an IP PIN?
The Identity Protection Pin (IP PIN) is a six -digit code known only to the taxpayer and to the IRS.

It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers' personally identifiable information.

Get Extra Protection ⚠️⚠️⚠️

Business Owners Alert ⚠️

NEW REPORTING REQUIREMENTS UNDER THE CORPORATE TRANSPARENCY ACT

The Corporate Transparency Act (the “CTA”), which went into effect January 1, 2024, requires “reporting companies” in the United States to disclose information regarding its beneficial owners, i.e., the individuals who ultimately own or control a company, to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”).

REPORTING COMPANIES

Reporting companies include both domestic and foreign entities. Domestic reporting companies include corporations, LLCs, or any other similar entities that are created by the filing of a document with a secretary of state or any similar office under the law of a state. Foreign reporting companies include privately formed entities and any other similar entities formed under the law of a foreign country that are registered to do business in the United States.

WHAT MUST COMPANIES REPORT?

Reporting companies subject to the CTA are required to provide the following information regarding the entity: (i) full legal name; (ii) trade names or d/b/a names; (iii) address of the entity; (iv) the jurisdiction of formation or registration; and (5) the federal taxpayer identification number.

WHEN MUST COMPANIES REPORT?

Existing reporting companies that were formed before January 1, 2024, must file their initial reports no later than January 1, 2025. Newly-formed reporting companies created after January 1, 2024, must file their initial reports 90 days after receiving notice of their creation or registration.

PENALTIES FOR VIOLATING THE CTA

Any person who provides false information or fails to comply with reporting requirements is liable for civil penalties of no more than US$500 for each day that the violation continue. Violators are also subject to criminal penalties of imprisonment of up to two years and fines of up to US$10,000.

Stay on top of things and make sure you know if your business needs to file a Business Owners Information (BOI) report or is exempt from filing one...

IRS Expands Business Tax Accounts to Include S Corporations and Partnerships

Individual partners of partnerships and individual shareholders of S corporation businesses are now eligible for a business tax account in addition to sole proprietors.

The Internal Revenue Service has launched the second phase of a new online self-service tool for businesses that expands business tax account capabilities and eligible entity types.

As a result, individual partners of partnerships and individual shareholders of S corporation businesses are now eligible for a business tax account in addition to sole proprietors.

Available at IRS.gov/businessaccount, the new business tax account is a key part of the agency’s continuing service improvement initiative. This is part of the larger effort under last year’s Inflation Reduction Act (IRA) and described in the multi-year Strategic Operating Plan released this spring.

Business tax account | Internal Revenue Service View your information on record and do more with a business tax account. Currently available to sole proprietors as well as certain individual partners and shareholders.

The IRS expects smaller tax refunds in 2023

“Due to tax law changes, such as the elimination of the Advance Child Tax Credit and the lack of Recovery Refund Credit this year for claiming pandemic-related stimulus payments, many taxpayers may find their refunds somewhat lower this year.”

https://dixonassociatests.com/tax-season

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Gather 2022 Tax Documents

Taxpayers should develop a recordkeeping system − electronic or paper − that keeps important information in one place. This includes year-end income documents like Forms W-2 from employers, Forms 1099 from banks or other payers, Form 1099-K from third-party payment networks, Form 1099-NEC for nonemployee compensation, Form 1099-MISC for miscellaneous income, or Form 1099-INT if you were paid interest, as well as records documenting all digital asset transactions.

Ensuring that your tax records are complete before filing helps you avoid errors that lead to processing delays. When you have all your documentation, you are in the best position to file an accurate return and avoid processing or refund delays or IRS letters.

The last quarterly payment for 2022 is due on January 17, 2023

Taxpayers may need to consider estimated or additional tax payments due to non-wage income from unemployment, self-employment, annuity income, or even digital assets.

The Tax Withholding Estimator on IRS.gov can help wage earners determine if there is a need to consider an additional tax payment to avoid an unexpected tax bill when you file.