Join 250,000+
professionals today

Add Insights to your inbox - get the latest
professional news for free.

How IRS Updates for 2025 Will Impact Tax Professionals and Filers

Join our 250K+ subscribers

Join our 250K+ subscribers

Subscribe

10 JAN 2025 / IRS UPDATES

How IRS Updates for 2025 Will Impact Tax Professionals and Filers

How IRS Updates for 2025 Will Impact Tax Professionals and Filers
0% buffered00:00Current time00:00

Taxes might not be anyone’s favorite topic, but it's worth paying attention when the IRS shakes things up. With updates ranging from ethical overhauls for tax professionals to clean energy credits and disaster relief extensions, these changes are designed to make a difference for individuals, businesses, and tax professionals. Let’s dive into what’s new and why you should care.

No Funny Business Allowed

The IRS is giving Circular 230 a much-needed facelift, focusing on ethics, professionalism, and tech-savviness. First on the chopping block? Contingency fees. These fees—where tax preparers take a cut of your refund—are being labeled “disreputable conduct.” While some argue this payment model helps low-income clients, the IRS believes it’s a breeding ground for risky claims and conflicts of interest.

But it’s not all about fees. The IRS calls on tax practitioners to level up their tech skills, requiring them to implement data security policies, incident response plans, and other tech measures. Oh, and appraisers? The new rules tighten standards for disqualification and clean up outdated requirements, ensuring appraisals meet today’s expectations. These updates send a clear message: tax professionals need to up their game and play fair, or risk losing the trust of their clients and the IRS.

Green Is the New Gold

The IRS and Treasury are throwing major weight behind renewable energy with expanded tax credits under Sections 45Y and 48E. These “technology-neutral” credits now go beyond solar and wind to include geothermal or hydrogen tax credits linking to nuclear, and even marine technologies. But the real MVP? The Clean Electricity Low-Income Communities Bonus Credit (48E(h)). If your project benefits low-income households, Indian Lands, or affordable housing developments, you can score an extra 10-20% credit on top of the standard 30%. That’s some serious green for going green.

According to the Department of Energy, these tax credits could save U.S. households up to $38 billion in electricity costs by 2030. But it’s not just about the savings—it’s about creating jobs and building a greener future. As Treasury Secretary Janet Yellen put it, “These rules ensure the clean energy boom benefits all Americans, driving down costs and building energy resilience.”

Turning the Tide

Low-income communities are also getting a slice of the green energy pie, thanks to the Clean Electricity Low-Income Communities Bonus Credit (48E(h)). This program expands on the 48(e)-bonus credit, focusing on reducing energy costs and fostering investments in underserved areas. The Treasury reported over 57,000 applications in the second year of the program, expected to generate $4 billion in public and private investments annually.  With annual allocations set to support 1.8 gigawatts of clean energy generation from 2025 to 2032, this program is a cornerstone of the government’s commitment to equitable and sustainable energy growth.

The IRS Cuts You Some Slack

When disaster strikes, taxes are probably the last thing on your mind. Luckily, the IRS has your back with extended deadlines for those in federally declared disaster zones. If you’re in Louisiana, Vermont, Puerto Rico, or parts of 14 states, you’ve got until February 3, 2025, to file your 2023 returns. Meanwhile, taxpayers in Alabama, Florida, and Georgia can take it easy until May 1, 2025—this includes their 2024 filings too. And for those affected by terrorist attacks in Israel, Gaza, or the West Bank, the deadline stretches all the way to September 30, 2025. These extensions aren’t just about avoiding penalties—they’re a chance to get your ducks in a row. Whether it’s claiming casualty loss deductions or stabilizing business operations, the IRS’s relief programs are designed to make rebuilding a little easier. 

Why These Updates Matter

These IRS changes are like a breath of fresh air in the world of taxes. Circular 230 is raising the bar for ethics and professionalism, clean energy credits are slashing energy costs while boosting sustainability, and disaster relief deadlines are giving taxpayers room to recover. For tax professionals, this is your moment to shine. Whether you’re helping clients claim clean energy credits or guiding them through disaster relief programs, these updates are a chance to show your expertise and build trust. The IRS isn’t just asking for compliance—they’re setting the stage for a smarter, greener, and fairer tax system. So, roll up your sleeves and get ready to make the most of these changes. Because while taxes might not be exciting, these updates could be just the ticket to making a real impact. Get the Scoop Before Everyone Else – Subscribe to MYCPE ONE Insights Today!

Until next time…

Don’t forget to share this story on LinkedIn, X and Facebook

📢MYCPE ONE Insights has a newsletter on LinkedIn as well! If you want the sharpest analysis of all accounting and finance news without the jargon, Insights is the place to be! Click Here to Join

Subscribed
Michael purchased a subscription.
Subscribed
Karen purchased a subscription.
Subscribed
Michael purchased a subscription.
Subscribed
Samia purchased a subscription.
Subscribed
SHANNON purchased a subscription.
Subscribed
Lindsey purchased a subscription.
Subscribed
Brian purchased a subscription.
Subscribed
David purchased a subscription.
Subscribed
jesus purchased a subscription.
Subscribed
Xinyi purchased a subscription.
Subscribed
Susan purchased a subscription.
Subscribed
Ashley purchased a subscription.
Subscribed
Alex purchased a subscription.
Subscribed
Kelly purchased a subscription.
Subscribed
Estela purchased a subscription.
Subscribed
Jay purchased a subscription.
Subscribed
Courtney purchased a subscription.
Subscribed
Mickey purchased a subscription.
Subscribed
Vincent purchased a subscription.
Subscribed
Todd purchased a subscription.
Subscribed
Stacie purchased a subscription.
Subscribed
Brittany purchased a subscription.
Subscribed
Nathalie purchased a subscription.
Subscribed
Michael purchased a subscription.
Subscribed
joao purchased a subscription.
Subscribed
Octavia purchased a subscription.
Subscribed
Ivan purchased a subscription.
Subscribed
BRIAN purchased a subscription.
Subscribed
Pascal purchased a subscription.
Subscribed
Andrea purchased a subscription.
Subscribed
Elyce purchased a subscription.
Subscribed
Hayden purchased a subscription.
Subscribed
Ashley purchased a subscription.
Subscribed
Julian purchased a subscription.
Subscribed
Jon purchased a subscription.
Subscribed
Elizabeth purchased a subscription.
Subscribed
LEROY purchased a subscription.
Subscribed
Linda purchased a subscription.
Subscribed
Carol purchased a subscription.
Subscribed
Charles purchased a subscription.
Subscribed
Olena purchased a subscription.
Subscribed
Emily purchased a subscription.
Subscribed
Annamarie purchased a subscription.
Subscribed
Wendy purchased a subscription.
Subscribed
Justin purchased a subscription.
Subscribed
GARY purchased a subscription.
Subscribed
Rosa purchased a subscription.
Subscribed
HILLARY purchased a subscription.
Subscribed
Arcelia purchased a subscription.
Subscribed
Thomas purchased a subscription.
Subscribed
Tamara purchased a subscription.
Subscribed
James purchased a subscription.
Subscribed
Creed purchased a subscription.
Subscribed
Colan purchased a subscription.
Subscribed
Arthur purchased a subscription.
Subscribed
Joseph purchased a subscription.
Subscribed
James purchased a subscription.
Subscribed
san purchased a subscription.
Subscribed
Jane purchased a subscription.
Subscribed
Dana purchased a subscription.
Subscribed
Craig purchased a subscription.
Subscribed
Moshood Oluwatobi purchased a subscription.
Subscribed
Kelsey purchased a subscription.
Subscribed
Kristia L Lantz purchased a subscription.
Subscribed
Chana purchased a subscription.
Subscribed
Brandon purchased a subscription.
Subscribed
Ktisifon purchased a subscription.
Subscribed
Martin purchased a subscription.
Subscribed
debbie purchased a subscription.
Subscribed
Grant purchased a subscription.
Subscribed
John purchased a subscription.
Subscribed
Lawrence Friedken purchased a subscription.
Subscribed
Brian purchased a subscription.
Subscribed
Douglas purchased a subscription.
Subscribed
Bin purchased a subscription.
Subscribed
Jeffrey purchased a subscription.
Subscribed
Seungbok purchased a subscription.
Subscribed
Doug purchased a subscription.
Subscribed
Isaiah purchased a subscription.
Subscribed
VLADIMIR purchased a subscription.
Subscribed
Mohamad Anuar purchased a subscription.
Subscribed
Oliver purchased a subscription.
Subscribed
Gary purchased a subscription.
Subscribed
Joe purchased a subscription.
Subscribed
Terese purchased a subscription.
Subscribed
Theresa purchased a subscription.
Subscribed
William purchased a subscription.
Subscribed
Nestor purchased a subscription.
Subscribed
Jared purchased a subscription.
Subscribed
Jane purchased a subscription.
Subscribed
Ben purchased a subscription.
Subscribed
Nana purchased a subscription.
Subscribed
Stephen purchased a subscription.
Subscribed
Lauren purchased a subscription.
Subscribed
SHAFIQ purchased a subscription.
Subscribed
Katie purchased a subscription.
Subscribed
Samuel purchased a subscription.
Subscribed
Linda purchased a subscription.
Subscribed
Brian purchased a subscription.
Subscribed
Vincent purchased a subscription.