Latest IRS Updates Every Small Business Tax Professional Should Know

Small businesses aren’t just storefronts or side hustles; they’re the backbone of the U.S. economy, driving innovation, creating jobs, and fueling local communities. As National Small Business Week (NSBW) rolls in from May 4-10, 2025, we’re tipping our hats to the 33+ million small businesses across the country. From the solopreneur crunching numbers in a coffee shop to the family business that’s been holding down Main Street for generations, this week is your time to shine. The IRS and SBA are both showing up big this year. Over 60 years strong, NSBW celebrates the entrepreneurial grit that powers America. The IRS is coming through with some serious tools, webinars, and digital upgrades aimed at helping small business owners and the tax professionals who support them crush it in 2025.

Don’t Let Uncle Sam Catch You Slippin

'Tax season isn’t just a springtime buzzkill; for small business owners, it can make or break your year. One overlooked pothole? Payroll taxes. These so-called "trust fund taxes" (Social Security, Medicare, and withheld income tax) are not optional, and missing a payment can land you in hot water with penalties that sting. Here’s where technology steps up. AI-powered platforms are helping business owners correctly classify expenses and avoid those snowballing errors that spiral from invoicing to audits. AI is no longer a luxury—it’s your new business partner.

But wait, there’s more: digital tools from the IRS, like the Business Tax Account and e-file systems, make tax time less terrifying. The Business Tax Account is a secure hub to view balances, set up payment plans, and manage your business like a professional, and it’s expanding fast. Sole props today, everyone else tomorrow.

The Fee Fight Heats Up

While you’re streamlining your operations, credit card fees are quietly stacking up behind the scenes. According to the National Retail Federation, swipe fees hit a wild $172 billion in 2023. That’s not pocket change, it’s driving up costs for consumers by over $1,100 a year per family. Some states don’t have it. D.C. just dropped the Fair Swipe Act of 2025, aiming to block processing fees on things like sales tax and tips—stuff businesses don’t even keep. Illinois, Colorado, and Kansas are lining up with similar legislation. This fee revolt is just getting started.

Tax Professionals: You’re the Real MVPs

Behind every thriving small business is a smart tax professional making sure things don’t go sideways. And this year, the IRS is making it easier for professionals to work their magic. From webinars like “Small business, big tools” to new digital services through the Tax Professional Account, advisors are getting the tech upgrades they deserve.

If you're in the domain, this is your cue to stay sharp. Keep your Centralized Authorization File (CAF) number updated, subscribe to IRS e-News, MYCPE ONE Insights Newsletter, and use tools like the IRS Secure Messaging system to save time and keep clients in the loop. The Tax Pro Account even lets you submit Power of Attorney forms in real-time—no more snail mail delays.

Scam Alert! Don’t Get Played

Let’s keep it real: scammers love small businesses. Phishing emails, bogus refund texts, and fake IRS notices are all part of the con artist toolkit. The IRS’s latest Dirty Dozen list calls out the worst offenders. From social media scams to spear phishing, the threats are real. The best defense? Education. Business owners should beef up their data security and know how to verify legitimate IRS communications. Use strong passwords, activate multi-factor authentication, and double-check links before clicking anything suspicious. Tax professionals should also educate clients and use trusted platforms to protect sensitive information.

Future-Proofing Your Biz

Disasters, financial hiccups, and surprise tax law changes are part of the entrepreneurial rollercoaster. Having a plan in place is non-negotiable. That means:

• Digitizing records and storing backups safely
• Documenting equipment and inventory for insurance claims
• Knowing what IRS relief is available after a federally declared disaster
• Monitoring payroll tax deposits via the Electronic Federal Tax Payment System (EFTPS)
• Ensuring your payroll provider has a fiduciary bond to protect against provider default

The IRS even has disaster-loss workbooks and specialized tax relief pages ready to go.

Bonus Tips for New Biz Owners

• Starting a business or advising a new entrepreneur? Here are a few must-dos straight from the IRS playbook:
• Choose the right business entity (LLC, S-Corp, sole prop) to determine your tax structure.
• Get your EIN (Employer Identification Number) from IRS.gov—it’s free and fast.
• Set up solid recordkeeping systems to track income, expenses, and deductible items.
• Consult with a tax professional early to avoid compliance headaches later.

These steps can prevent chaos when it’s time to file and position your business for growth.

Let’s Make This Week One to Remember

National Small Business Week is more than a celebration; it’s a moment to refocus. Whether you’re a first-time founder or a seasoned tax advisor, now’s the time to double down on planning, tech adoption, and fraud prevention. Small businesses aren’t just surviving, they’re leveling up. Let’s keep that momentum going. Tap into the IRS’s free resources, build stronger partnerships between entrepreneurs and tax pros, and keep pushing forward. And hey, if you’ve got a favorite business-themed movie with some juicy tax angles (think mobster laundromats or empire-building chefs), there might just be a review brewing for Tax Movie Summer 2025. Stay tuned.

Call to Action: Visit IRS.gov to access small business resources, register for the May 8th webinar, and subscribe to IRS e-News for tax professionals. Let’s raise a toast (or a tax-deductible coffee) to small business success! Get the latest IRS news, tax tips, and pro strategies delivered to your inbox. Subscribe to MYCPE ONE Insights.