News & Updates

Earlier this year, the IRS issued its annual Dirty Dozen list that highlights some persuasive schemes impacting businesses, including new client scams, spear phishing, fake charities, bad social media advice and false credit claims.

There are several protective measures taxpayers and businesses can take, such as watching out for fake requests for W-2s especially with the tax filing deadline already passed. Businesses are encouraged to take proactive steps today to safeguard their business and employees by implementing robust security measures. Some examples are using anti-malware/anti-virus software with automatic updates and enforcing strong passwords with multi-factor authentication. Ensure that you only enter personal data on secure websites (https) to prevent unauthorized access. See Publication 5961, Protect your business from tax scams PDF, for more information.

Business owners should prioritize the protection of their Employer Identification Number (EIN). Keep it secure and up to date with accurate information. Any necessary updates to an EIN should be made promptly by using Form 8822-B. This will ensure its integrity and minimize the risk of identity theft or fraudulent activity.

Disaster season is also upon us, which opens the door for additional fraud and scams to take place after a disaster occurs. Scammers may impersonate IRS workers, claiming they can offer “help” when filing casualty loss claims. Disaster survivors can call the IRS disaster assistance line at 866-562-5227. IRS representatives will answer questions about tax relief or disaster-related tax issues.

Be sure to educate employees on data security to protect both them and your business. There are a number of resources available, such as IRS Identity Theft Central and security awareness publications, to provide comprehensive training and awareness.

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With tax season over and peak periods for disasters approaching, now is a good time for taxpayers to think about protecting important tax and financial information as part of a disaster emergency plan.

Disasters can have an immediate and lasting impact on individuals, organizations and businesses. Year-round preparation is important, and observing Hurricane Preparedness Week and Wildfire Awareness Month provides an opportunity for an annual assessment of readiness.

So far in 2025, the Federal Emergency Management Agency (FEMA) has issued 12 major disaster declarations in nine states impacted by winter storms, flooding, tornadoes, wildfires, landslides and mudslides. For current disaster declarations and information on how declarations are made, see FEMA’s Current Disasters page.

The IRS offers tips to help taxpayers protect personal financial and tax information when disaster hits.

Protect and make copies of important documents

Original documents such as tax returns, Social Security cards, marriage certificates, birth certificates and land ownership documents need to be secured in a waterproof container in a safe space. Taxpayers are also encouraged to make copies of these important documents and store them in a secondary location such as a safe deposit box or with a trusted person who lives in a different area. In addition, scanned documents can be stored on a flash drive for easy portability.

Keep a record of valuables

Taxpayers should use cell phones or other mobile devices to make a record of high-value items. A simple list with current photos or videos can help support claims for insurance or tax benefits after a disaster. The IRS disaster loss workbooks in Publication 584, Casualty, Disaster and Theft Loss Workbook (Personal-Use Property), and Publication 584-B, Business Casualty, Disaster and Theft Loss Workbook, can help individuals and businesses make lists of belongings or business equipment.

Rebuilding records

Reconstructing or replacing records after a disaster may be required for tax purposes, claiming federal assistance or insurance reimbursement. Accurate loss estimates could mean more loan and grant money may be available. Taxpayers who have lost some or all their records during a disaster should visit IRS’s Reconstructing records webpage as a first step.

Employers should check fiduciary bonds

Disasters can impact a business’ ability to make timely federal tax deposits. Employers using payroll service providers should check if the provider has a fiduciary bond in place that can protect the employer in the event of default by the payroll service provider. The IRS reminds employers to choose their payroll service providers carefully.

IRS can provide tax relief after a disaster

After FEMA issues a major disaster or emergency measures declaration, the IRS may postpone certain tax filing and payment deadlines for taxpayers who reside or have a business in certain counties affected by the disaster. The IRS provides details on states and counties that have been issued relief on the IRS Disaster relief page.

Taxpayers in the affected areas do not need to call to request this relief. The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Those impacted by a disaster can contact the IRS Disaster Hotline at 866-562-5227 to ask their tax-related questions of an IRS specialist trained to handle disaster-related issues.

Taxpayers who do not reside or have a business in a covered disaster area but suffered impact from a disaster should call 866-562-5227 to find out if they qualify for disaster tax relief and to discuss other available options.

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Free electronic filing options

Taxpayers with an adjusted gross income of $84,000 or less in 2024 can use IRS Free File guided tax software now through Oct 15. IRS Free File Fillable forms, a part of this program, is available at no cost to taxpayers of any income level and provides electronic forms for people to fill out and e-file themselves.

IRS Direct File is now open to all eligible taxpayers in 25 states to file their 2024 federal tax returns online, for free, directly with the IRS. Go to the Direct File website for more information about Direct File eligibility and the 25 participating states.

Through a network of community partnerships, the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free tax return preparation to eligible people in the community by IRS-certified volunteers.

MilTax, a Department of Defense program, generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.

Use Where's My Refund? to check refund status

The Where's My Refund? tool usually shows a refund status within 24 hours after a taxpayer e-files a current year return. It takes about four weeks for the same information to be available for those filing paper returns.

Taxpayers can get their refund information for the current year and past two years. The tool is available 24/7, and is a fast, easy way to get information about a refund without needing to call the IRS. To use the tool, taxpayers need their Social Security number, filing status and exact refund amount. The tool updates once a day, so people don't need to check more often.

Taxpayers can also check Where's My Refund? by downloading the IRS free mobile app, IRS2Go, from an iPhone or Android device.

Taxpayers that owe on their tax return

IRS reminds people they can avoid paying interest and some penalties by filing their tax return and, if they have a balance due, paying the total amount due by the tax deadline of April 15.

Payment options for individuals

The IRS offers various options for taxpayers who are making tax payments:

• Direct Pay – Make a payment directly from a checking or savings account without any fees or registration.
• IRS Individual Online Account – Make a payment directly from a checking or savings account and view amount due, payment plan details, payment history and scheduled payments. To create an account or for more information, taxpayers can visit the online account page on IRS.gov.
• Pay taxes with debit card, credit card or digital wallet – Make a payment directly with a debit card, credit card or digital wallet. Fees are paid to the payment processors. The IRS doesn’t receive any fees for these payments. Authorized card processors and phone numbers are available on IRS.gov.
• Electronic Federal Tax Payment System (EFTPS) – This free service gives taxpayers a safe, convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can visit eftps.gov or call 800-555-4477.
• Electronic funds withdrawal (EFW) – Taxpayers can file and pay electronically from their bank account when using tax preparation software or a tax professional. This option is free and only available when electronically filing a tax return.
• Check or money order – Payments made by check or money order should be made payable to the “United States Treasury.”
• Cash – Make a cash payment through a retail partner and other methods. The IRS urges taxpayers choosing this option to start early because it involves a four-step process. Details, including answers to frequently asked questions, are on the IRS.gov page on how to pay with cash at a retail partner.

Payment options for individuals unable to pay their taxes in full

Taxpayers who can’t pay in full by the tax deadline should pay what they can now and apply for an online payment plan. Applicants that apply online will know immediately if their request for a payment plan is accepted or denied without calling or writing to the IRS.

Online payment plan options include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
• Long-term payment plan – New Simple Payment Plan criteria make it easier and more accessible to enter a long-term payment plan when the total balance owed is less than $50,000 in combined tax, penalties and interest. Taxpayers may pay in monthly payments for up to the collection statute, usually 10 years. Payments may be set up using direct debit (automatic bank withdrawal), which eliminates the need to send in a payment each month, saves postage costs and reduces the chance of default.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS Additional information on payment plans webpage.

Unable to file by the April 15 deadline?

Individuals unable to file their tax return by the tax deadline can apply for a tax-filing extension in the following ways:

• Individual tax filers, regardless of income, can electronically request an automatic tax-filing extension through IRS Free File by filing a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
• Make an electronic payment using Direct Pay, debit card, credit card or digital wallet and indicate the payment is for an extension.
• Mail Form 4868 by the tax deadline.

Getting an extension

Things taxpayers should know when requesting a tax-filing extension, including:

• Tax-filing extension requests are due by the tax deadline date, and it does not give an extension of time to pay the taxes.
• Avoid some penalties by estimating and paying the tax due by the tax deadline.
• Special rules for tax deadlines and automatic tax-filing extensions may apply for taxpayers serving in a combat zone or qualified hazardous duty areas, living outside the United States, and people living in certain disaster areas. They may not need to submit a tax-filing extension; however, people should check to see if they qualify before the tax deadline.

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Who qualifies?

A taxpayer qualifies for the June 16 extension if they are a U.S. citizen or resident alien and, on the regular due date of their return:

• They are living outside the United States and Puerto Rico and their main place of business or post of duty is outside the United States and Puerto Rico, or
• They are in military or naval service on duty outside the United States and Puerto Rico.

Qualifying taxpayers should attach a statement to the return indicating which of these two situations applies.

Extensions beyond June 16

Taxpayers who can’t meet the June 16 due date can request an automatic extension to Oct. 15, 2025. This is an extension of time to file, not an extension to pay.

The fastest and easiest way to get an extension is to request it electronically. Several electronic filing options are available. Visit Get an Extension to File Your Tax Return for details. Taxpayers may also use IRS Free File to file an extension electronically.

Taxpayers who cannot request an extension electronically can complete and mail Form 4868 to the IRS. See About Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for more information.

Taxpayers can also get an extension when paying a tax bill electronically. There is no need to file Form 4868 when selecting an extension when paying electronically.

Businesses that need more time must file Form 7004 to request an automatic 6-month extension. Visit About Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns.

Combat zone extensions

Members of the military in a combat zone during tax filing season may qualify for an additional extension of at least 180 days to file and pay taxes. More information, like who qualifies, can be found at Extension of Deadlines – Combat Zone Service Q&As.

Spouses of individuals who serve in a combat zone or contingency operation are generally entitled to the same deadline extensions with some exceptions. Extension details and tax information for members of the military are available in IRS Publication 3, Armed Forces’ Tax Guide.

Special relief for terrorist attacks in Israel

Taxpayers who live or have a business in Israel, Gaza or the West Bank and certain other taxpayers affected by the terrorist attacks in the State of Israel have until Sept. 30, 2025, to file and pay. This includes most returns and taxes due from Oct. 7, 2023, through Sept. 30, 2025, including Form 1040 and 1120 series returns.

Filing required to get tax benefits

Many taxpayers living outside the U.S. qualify for tax benefits such as the Foreign Earned Income Exclusion and the Foreign Tax Credit, but these benefits are available only if a U.S. return is filed. Other deductions and tax credits may also be available. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, available on IRS.gov.

Reporting required for foreign accounts and assets

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B, Interest and Ordinary Dividends, to their Form 1040 series tax return. Part III of Schedule B asks about the existence of foreign accounts such as bank and securities accounts and usually requires U.S. citizens to report the country in which each account is located.

In addition, many taxpayers may also need to complete and attach to their return Form 8938, Statement of Specified Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. For details, see the instructions for this form.

Reporting foreign financial accounts to Treasury

Foreign financial accounts, such as bank accounts or brokerage accounts, must be reported to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by electronically filing Form 114, Report of Foreign Bank and Financial Accounts (FBAR). The FBAR requirement applies to anyone with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2024.

The IRS urges taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them. The form is available only through the Bank Secrecy Act E-Filing System. The deadline for filing the annual FBAR is April 15, 2025. However, FinCEN grants those who missed the April deadline an automatic extension until Oct. 15, 2025. There’s no need to request this extension. See FinCEN’s website PDF for further information.

Report in U.S. dollars

Any income received or deductible expenses paid in foreign currency must be reported on a U.S. tax return in U.S. dollars. Likewise, any tax payments must be made in U.S. dollars.

Both FINCEN Form 114 and IRS Form 8938 require the use of a Dec. 31 exchange rate for all transactions, regardless of the actual exchange rate on the date of the transaction. Generally, the IRS accepts any posted exchange rate that is used consistently. For more information on exchange rates, see Foreign currency and currency exchange rates.

Making tax payments

To ensure tax payments are credited promptly, the IRS urges taxpayers to consider the speed and convenience of paying their U.S. tax obligation electronically. The fastest and easiest way to do that is via their IRS Online Account, IRS Direct Pay and the Electronic Federal Tax Payment System (EFTPS). Options to pay with debit or with credit card and digital wallets are available as well. Service providers charge a fee for this option. For details on these and other electronic payment options, visit IRS.gov/payments.

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Collect all tax-related paperwork

Taxpayers should gather all documents including W-2s, 1099s and other information returns, as well as any supporting paperwork for tax deductions or credits such as educational credits or mortgage interest payments. Having the previous year's tax return accessible is also advised as it may be required. Taxpayers can also check their IRS Individual Online Account to view their Form W-2, Wage and Tax Statement, and Form 1095-A, Health Insurance Marketplace Statement, under the Records and Status tab in the taxpayer’s Individual Online Account.

Ensure filing status, names, birthdates and Social Security numbers are correct

Taxpayers must accurately provide the name, date of birth and SSN for each dependent listed on their individual income tax return. The SSN and individual's name should be entered precisely as indicated on the Social Security card. In cases where a dependent or spouse lacks an SSN and is ineligible to obtain one, an assigned individual tax identification number (ITIN) should be listed instead of an SSN.

Use electronic filing

The IRS advises taxpayers and their tax advisors to use electronic filing methods such as IRS Free File, Free File Fillable Forms or with Direct File. Electronic filing decreases mathematical errors, identifies potential tax credits or deductions for which the taxpayer qualifies and prompts taxpayers for missing information. Opting for electronic filing and selecting direct deposit is the fastest and safest way to receive a refund.

While taxpayers and tax professionals are urged to choose electronic filing when filing individual tax returns, there are taxpayers who must submit a paper tax return. It is essential that paper filers verify the accurate mailing address either on IRS.gov or in the instructions provided with Form 1040 to prevent processing delays.

Report all taxable income

Most income is subject to taxation. Failing to accurately report income may result in interest and penalties. Taxable income includes various sources of income such as interest earnings, unemployment benefits and income derived from the service industry, gig economy and digital assets. For further details, consult Publication 525, Taxable and Nontaxable Income.

Answer the digital assets question

Everyone who files Forms 709, 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2024.

Taxpayers must report all income related to digital asset transactions. Visit the Digital assets page on IRS.gov for details on when to check “yes” and how to report digital asset transactions.

Make sure banking routing and account numbers are correct

Taxpayers have the option to request direct deposit of a federal refund into one, two or even three accounts. For taxpayers who do not have a traditional bank account, some mobile apps and prepaid debit cards have routing and account numbers that allow for direct deposit of tax refunds. When expecting a refund, ensure the routing and account numbers provided for direct deposit are accurate to avoid delays or misdirected refunds.

Remember to sign and date the return

When submitting a joint return, both spouses must sign and date the return. If taxpayers are preparing their taxes independently and filing electronically, they need to sign and authenticate their electronic tax return by inputting their adjusted gross income from the prior year. For more guidance, visit Validating your electronically filed tax return.

Need to make a payment

Tax payments are still due on April 15 for most taxpayers. Payments can be made using Individual Online Account, Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or with a debit/credit card or digital wallet. By doing so, taxpayers avoid the necessity of filing a separate extension form and receive a confirmation number for their records.

Request an extension if needed

Taxpayers requiring more time to file their taxes can easily request a six-month extension until Oct. 15. The IRS offers three options to request an extension to file:

• Pay what you owe using an online payment option and check the box that you are paying as part of filing for an extension.
• Requested at no cost either through IRS Free File regardless of income, or
• By submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15.

While an extension avoids late filing penalties and provides extra time for filing, an extension of time to file is not an extension of time to pay. Taxpayers can seek an extension to file by making a full or partial payment of their estimated income tax and indicating that the payment is for an extension.

Many taxpayers may have more time to file if they were affected by a disaster situation. Visit Tax relief in disaster situations for information on the most recent tax relief provisions based on FEMA’s declarations.

Keep a copy of the tax return

Taxpayers should maintain copies of their signed return and any accompanying schedules for their personal records and to help them prepare future tax returns and figure mathematical computations in the event they have to file an amended return. Typically, taxpayers should retain records supporting income, deductions or credits claimed on their tax return until the period of limitations for that specific tax return expires.

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