The Internal Revenue Service today announced interest rates will remain the same for the calendar quarter beginning April 1, 2025.

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the new rates:

• 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
• 4.5% for the portion of a corporate overpayment exceeding $10,000.
• 7% for underpayments (taxes owed but not fully paid).
• 9% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during January 2025. See the revenue ruling for details.

Revenue Ruling 2025-7 PDF announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2025-13, dated March 24, 2025.

Source: IRS-2025-29, March 6, 2025

The Internal Revenue Service announced today it’s making it easier for taxpayers to file their taxes by adding information return documents to their IRS Individual Online Account, helping consolidate important tax records into one digital location.

The first information returns to be added are Form W-2, Wage and Tax Statement and Form 1095-A, Health Insurance Marketplace Statement. These forms will be available for tax years 2023 and 2024 under the Records and Status tab in the taxpayer’s Online Account.

Adding these forms to the IRS Individual Online Account demonstrates the IRS’s ongoing efforts to modernize and enhance taxpayers’ ability to quickly and securely access their tax planning information. In the coming months, the IRS plans to add more information return documents to Individual Online Account.

Adding information returns like the Form W-2 to the IRS Individual Online Account makes keeping track of critical tax planning information even simpler.

Information return documents are filed and required to be reported to payees and the IRS by employers, financial institutions, government agencies and other payers. They provide information that can help people file their taxes.

Only information return documents issued in the taxpayer’s name will be available in their Online Account. Their spouse must log into their own Online Account to retrieve their information return documents. This is true whether they file a joint or separate return. Importantly, state and local tax information, including state and local tax information on the Form W-2, will not be available on Individual Online Account. Filers should continue to keep the records mailed to them by the original reporter.

Create an IRS Individual Online Account

Individuals can create or access their Online Account on IRS.gov at Online Account for Individuals. In addition to Forms W-2 and 1095-A, people can:

• View key details from their most recent tax return, such as Adjusted Gross Income.
• Request an identity protection PIN and view it throughout the year.
• Check refund status.
• Get account transcripts, including wage and income records.
• Sign tax forms like powers of attorney or tax information authorizations.
• View and edit language preferences and alternative media.
• Receive and view over 200 IRS electronic notices.
• View, make and cancel payments.
• Set up or change payment plans and check their balance.

Even if taxpayers still have missing or incorrect documents, they should file their tax return on time. If they don’t receive an information return document, or if it’s incorrect or lost, taxpayers should contact their employer, payer or issuing agency and request a copy of the missing document or a corrected document. This year’s tax deadline is April 15 for most filers. For more information, read Topic no. 154, Form W-2 and Form 1099-R (what to do if incorrect or not received), on IRS.gov.

Source: IRS-2025-28, Feb. 27, 2025

The Internal Revenue Service today reminded farmers and fishers who chose to forgo making estimated tax payments by January that they must generally file their 2024 federal income tax return and pay all taxes due by March 3, 2025. Because it’s on Saturday this year, the usual March 1 deadline is pushed back two days to Monday, March 3.

The special March 3 deadline allows farmers and fishers to avoid any estimated tax penalties. Though several tax-payment options are available, the IRS urges farmers and fishers to consider the quick, easy and free option of paying taxes electronically from their bank account using either their IRS Online Account or IRS Direct Pay. IRS Online Account and IRS Direct Pay are available only on IRS.gov.

The special March 3, 2025, deadline applies to anyone who qualifies as a farmer or fisher and did not make a 2024 estimated tax payment by Jan. 15, 2025. Those who made a qualifying payment by that date can wait until the regular April 15, 2025, deadline to file and pay and still avoid estimated tax penalties. See Publication 505, Tax Withholding and Estimated Tax, for details.

For this purpose, a farmer or fisher is anyone who received at least two-thirds of their gross income from farming or fishing during either 2023 or 2024.

Special rules for disaster areas

Disaster-area taxpayers, including farmers and fishers, have more time to file and pay. This extension is automatic; taxpayers don’t need to file any paperwork or call the IRS to get it.

Currently, taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Alaska, New Mexico, Tennessee, Virginia and West Virginia have until May 1, 2025, to file and pay.

Like other taxpayers, these disaster-area taxpayers who need more time to file, beyond May 1, can get it by requesting an extension to Oct. 15, 2025. But because this extension request only gives them more time to file, any tax payments are still due by May 1.

Electronically filed extension requests must be made by April 15. Between April 15 and May 1, the request can only be filed on paper. To learn how, visit IRS.gov/extensions.

In addition, California wildfire victims have until Oct. 15, 2025, to file and pay. Likewise, taxpayers throughout Kentucky have until Nov. 3, 2025, to file and pay. No extension beyond these dates is available.

Paying online is safe, fast and easy

IRS Online Account allows individual taxpayers to make same-day payments from a checking or savings account. Taxpayers can also see their payment history, balance and payment plan information, and digital copies of many notices sent from the IRS.

Alternatively, taxpayers can use IRS Direct Pay to make or schedule a payment from their bank account with no registration or login required. Those who need to pay business taxes through the Electronic Federal Tax Payment System (EFTPS) can also choose to use this system to make their individual income tax payments.

For more information about these and other payment options, visit IRS.gov/payments.

Forms and publications to use

Farmers

• Use Schedule F (Form 1040), Profit or Loss From Farming, to report income and expenses.
• Use Schedule SE (Form 1040), Self-Employment Tax, to figure self-employment tax if net earnings from farming are $400 or more.
• See Topic No. 554, Self-Employment Tax, Publication 225, Farmer’s Tax Guide, and Agriculture Tax Center for more information.

Fishers

• Use Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), to report income and expenses.
• Use Schedule SE (Form 1040), Self-Employment Tax, to figure self-employment tax if net earnings from fishing are $400 or more.
• See Publication 334, Tax Guide for Small Business, for commercial fishers who file Schedule C.

Related items

• For farmers and fishers operating as a partnership or corporation see Publication 541, Partnerships, or Publication 542, Corporations.
• For information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax, and Topic No. 416, Farming and Fishing Income.
• Publication 5034, Need to Make a Payment? PDF, (English and Spanish).

Source: IRS-2025-27, Feb. 27, 2025

As the 2025 tax filing season continues, the Internal Revenue Service encourages taxpayers to make essential preparations and be aware of significant changes that may affect their 2024 tax returns.

This announcement marks the commencement of the Tax Time Guide series. The IRS uses this guide to provide updated information to assist taxpayers in filling an accurate return. A wealth of resources and tools is also available on IRS.gov, including a dedicated special free help page accessible 24/7.

The IRS encourages taxpayers to read Publication 17, Your Federal Income Tax (For Individuals), for additional guidance and updates.

Tips for filing an accurate tax return

The deadline for submitting Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors, is April 15, 2025. To avoid mistakes and potential processing delays, taxpayers should refrain from filing until they have received all necessary tax documents. Taxpayers should always carefully review documents for inaccuracies or missing information. They should immediately contact their employer or payer to request a correction if issues arise.

The IRS recommends taxpayers create an IRS Online Account, which provides secure access to their tax information, including payment history, tax records and other key information. Maintaining digitally organized tax documents can streamline the preparation of a complete and accurate tax return and may help identify overlooked deductions or credits.

Taxpayers who have an individual taxpayer identification number or ITIN may need to renew it if it has expired. The IRS can accept a tax return with an expiring or expired ITIN, but there may be processing delays.

Updates to Additional Child Tax Credit for tax year 2024

The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child.

Bona fide residents of Puerto Rico are no longer required to have three or more qualifying children to be eligible to claim the ACTC. Bona fide residents of Puerto Rico may be eligible to claim the ACTC if they have one or more qualifying children.

The IRS cannot issue refunds before mid-February 2025 for returns that properly claim the ACTC. This time frame applies to the entire refund, not just the portion associated with the ACTC.

Other changes for tax year 2024

Standard deduction amount increase. For 2024, the standard deduction amount has been increased for all filers. The amounts are:

• Single or married filing separately — $14,600.
• Head of household — $21,900.
• Married filing jointly or qualifying surviving spouse — $29,200.

Child Tax Credit enhancements. Taxpayers eligible for the Child Tax Credit should not wait to file their 2024 tax return. If Congress changes the CTC guidelines in the future, the IRS will automatically adjust for those who have already filed. No additional action will be needed by those eligible taxpayers.

Under current law for tax year 2024, the following currently apply:

• The initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where adjusted gross income (AGI) income exceeds $200,000 ($400,000 in the case of a joint return).
• A child must be under age 17 at the end of 2024 to be a qualifying child.

Changes to the Earned Income Tax Credit (EITC). To claim the EITC without a qualifying child in 2024, taxpayers must be at least age 25 but under age 65 at the end of 2024. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2024.

Taxpayers may find more information on various child tax credits in the Instructions for Schedule 8812 (Form 1040).

Adoption Credit. The Adoption Credit and the exclusion for employer-provided adoption benefits are both $16,810 per eligible child in 2024. The amount begins to phase out if taxpayers have a modified AGI in excess of $252,150 and is completely phased out if their modified AGI is $292,150 or more. For more information, see Form 8839 PDF and Instructions for Form 8839.

Clean Vehicle Credit. The Clean Vehicle Credit is reported on Form 8936 and Schedule 3 (Form 1040), line 6f. For more information, see Form 8936, Clean Vehicle Credit.

Previously owned Clean Vehicle Credit. This credit is available for previously owned clean vehicles acquired and placed in service after 2022. For more information, see Form 8936, Clean Vehicle Credit.

More information on these and other credit and deduction changes for tax year 2024 may be found in Publication 17, Your Federal Income Tax (For Individuals), taxpayer guide.

IRA contribution limit increased

Beginning in 2024, the IRA contribution limit is increased to $7,000 ($8,000 for individuals aged 50 or older) from $6,500 ($7,500 for individuals aged 50 or older) the prior year.

1099-K reporting requirements have changed for tax year 2024

The reporting threshold for 2024 has changed. Third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, are now required to report transactions when the amount of the total payments for those transactions in 2024 was more than $5,000. The IRS has issued Notice 2024-85 providing transition relief for TPSOs. To understand what to do, taxpayers should become familiar with Form 1099-K.

Source: IRS-2025-23, Feb. 19, 2025

Presidents Day weekend is peak time for IRS phone traffic. Skip the wait by visiting IRS.gov.

With the 2025 filing season underway and the anticipated high demand for IRS phone lines around the Presidents Day holiday, the Internal Revenue Service today encouraged taxpayers to visit IRS.gov and use online tools to get immediate answers.

Presidents Day weekend is typically a busy time in the tax filing season, according to IRS statistics, when calls to IRS phone lines are often at their highest.

The IRS has resources to help taxpayers beat the rush. On IRS.gov, taxpayers can use the Let us help You page that covers most topics for filing season and beyond. In addition, people can get free help online with self-service options.

The IRS offers several free filing options. There’s also step-by-step help about filing a personal federal income tax return.

Skip the mail: File electronically and choose direct deposit

Approximately 93% of taxpayers file their federal income tax returns electronically, and most choose direct deposit to receive their refunds. According to Treasury’s Bureau of the Fiscal Service, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen or uncashed.

The IRS offers free online and in-person tax preparation options for eligible taxpayers through IRS Free File, IRS Direct File and Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

• Taxpayers who earned $84,000 or less in 2024 can use IRS Free File Guided Tax Software now through Oct 15. IRS Free File Fillable Forms are also available at no cost to any income level and provide electronic forms that people fill out and electronically file themselves.
• Direct File is now open in 25 participating states where taxpayers can use Direct File to e-file directly with the IRS for free. It’s a free web-based service – available in English and Spanish – that works on mobile phones, laptops, tablets or desktop computers. It guides taxpayers through a series of questions to prepare their federal tax return step-by-step. Direct File automatically guides taxpayers to state tools to complete their state taxes. Get help from IRS customer service representatives through a live chat feature in English and Spanish. Interested taxpayers can go to directfile.irs.gov, where they can determine if they’re eligible.
• The VITA and TCE programs offer free tax return preparation to eligible people in the community by IRS certified volunteers through a network of community partnerships. The VITA program has operated for over 50 years. VITA sites offer free tax help to people who need assistance in preparing their own tax returns, including, people who generally make $67,000 or less, persons with disabilities and limited English-speaking taxpayers. In addition to VITA, TCE program volunteers offer free tax help, particularly for those who are 60 years of age and older, specializing in questions about pensions and retirement-related issues unique to seniors.
• 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.

Skip the wait: Get tax info with an Individual Online Account

Individuals with Social Security numbers or Individual Taxpayer Identification Numbers (ITIN) can create or securely access their Individual Online Account and get the latest information about their federal tax account.

With an IRS online account, taxpayers can:

• Access their tax records, including their Adjusted Gross Income from their most recently filed tax return.
• View, approve and sign authorizations from their tax professional.
• Request and view their identity protection PIN (IP PIN), a six-digit number known only to the taxpayer and the IRS that prevents someone else from filing a tax return using their information.
• Check refund status.
• Validate and save bank accounts.
• View balance and payment history and create a payment plan.
• Make a payment and schedule or cancel future payments.
• Get virtual assistance for balance due and payment-related questions.
• Manage their communication preferences.

Skip the wondering: Check refund status online

The popular Where’s My Refund? tool on IRS.gov has the most up-to-date information available about a taxpayer’s refund status. Recent improvements to Where’s My Refund? allow taxpayers to see more detailed refund status messages in plain language, reducing the need for taxpayers to call the IRS.

Most Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) related refunds should be available in bank accounts or on debit cards by March 3 if taxpayers chose direct deposit and there are no other issues with their tax return. Taxpayers can check Where’s My Refund? for their personalized refund date. Where’s My Refund? should show an updated status by February 22 for most early EITC/ACTC filers.

Skip the phone: Get answers to tax questions online

The Interactive Tax Assistant (ITA) tool on IRS.gov provides answers to several tax questions specific to individual circumstances. Based on input, ITA determines a person’s filing status, whether they should file a tax return, if someone is an eligible dependent, if a type of income is taxable, if a filer is eligible to claim a credit, if an expense is deductible and more.

Skip the headache: Use online checklists when preparing to file

Taxpayers can find out what tax paperwork and records they need to file an accurate and complete return on IRS.gov. Taxpayers should have all their important and necessary documents before preparing their return. They should also check for common errors and omissions that may slow down tax processing, including refund times.

If a taxpayer receives Form 1099-K, they should visit What to do with Form 1099-K to help them determine if that money should be reported as income on their federal tax return. Missing a W-2? Certain information return documents are available in Individual Online Account. People can sign on and get copies of Forms W-2, Wage and Tax Statement; Forms 1095-A, Health Insurance Marketplace Statement; and Forms 1099-NEC, Nonemployee Compensation. These forms are available for tax years 2023 and 2024.

Skip the guessing: Check eligibility for EITC using online tax assistant

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. The IRS estimates that about one in five EITC eligible taxpayers don’t claim this valuable credit. If a taxpayer qualifies, they can use the credit to reduce the taxes they owe – and maybe increase their refund.

The Earned Income Tax Credit Assistant on IRS.gov can help individuals determine:

• If they are eligible to claim the EITC.
• If they have any qualifying children or relatives.
• The estimated amount of their credit.
• The filing status they should use.

Skip the worry: Use an IP PIN to protect against tax-related identity theft

An identity protection PIN (IP PIN) is a proactive way to protect against tax-related identity theft. Tax-related identity theft occurs when someone uses stolen personal information, including Social Security numbers, to file a tax return claiming a fraudulent refund. If a person suspects they are a victim of identity theft, they should continue to pay their taxes and file their tax return, even if they must file a paper return. Visit Identity Theft Central to find out more.

An identity protection PIN (IP PIN) is a six-digit number known only to the taxpayer and the IRS that prevents someone else from filing a tax return using their Social Security number or individual taxpayer identification number. It helps the IRS verify a person’s identity when they file their electronic or paper tax return. The fastest way to request and receive an IP PIN is by creating an Individual Online Account. If someone wishes to get an IP PIN and they don’t already have an account on IRS.gov, they must register to validate their identity.

Skip the stress: Find a reputable tax professional at IRS.gov

The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find a preparer who is skilled in tax preparation and accurately files income tax returns.

Most tax professionals provide outstanding and professional tax service. However, choosing the wrong tax return preparer hurts taxpayers financially every year. Be sure to check tips for choosing a tax preparer and how to avoid unethical “ghost” return preparers.

While all tax professionals are required to list their preparer tax identification number (PTIN) and sign the return, some do not. Referred to as ghost preparers, these people encourage taxpayers to take advantage of tax credits and benefits for which they do not qualify. Sometimes they charge a large percentage fee of the refund or even steal the entire tax refund. After the tax return is prepared, these “ghost preparers” may simply disappear, leaving well-meaning taxpayers to deal with the consequences.

The IRS encourages people to use a trusted tax professional because even when the tax return preparer signs the return, the taxpayer is ultimately responsible for the accuracy of every item reported on their return. Visit IRS.gov to find a reputable tax professional.

Skip the surprise: Use the Tax Withholding Estimator

Taxpayers should check their tax withholding every year, especially if they experience a major life change. The Tax Withholding Estimator tool allows taxpayers to estimate the federal income tax they want their employer to withhold from their paycheck.

By using the Tax Withholding Estimator, taxpayers can adjust their tax withheld up front so they can protect against having too little tax withheld and prevent an unexpected tax bill or penalty at tax time next year. Taxpayers should submit a new Form W-4 to their employer to make any adjustments.

IRS.gov is the first stop for help

IRS.gov is the quickest and easiest option to get help. Taxpayers can visit IRS.gov anytime to get answers to tax questions. People can find more tips and resources by visiting the Let us help you page on IRS.gov.

Source: IRS-2025-22, Feb. 12, 2025

The Internal Revenue Service today reminded taxpayers that choosing the right tax professional is essential to helping them avoid tax-related identity theft and financial harm.

While most tax return preparers are trustworthy and provide high-quality service, some engage in fraud, identity theft and scams. Taxpayers must understand who they’re hiring and ask the right questions before handing over their sensitive personal and financial information.

Remember: Taxpayers are legally responsible for the accuracy of their income tax return, even if someone else prepares it.

IRS tools available to help taxpayers choose wisely

The IRS provides important resources to help taxpayers make informed decisions.

• The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find a tax pro who meets high standards.

• There’s also a dedicated page on IRS.gov which offers guidance for Choosing a tax professional, including tips on choosing a reputable preparer, how to avoid unethical preparers and the various types of tax return preparers available. Taxpayers should consider their unique needs to determine which kind of preparer is best for them.

Free tax preparation

The IRS offers free filing options to file electronically. Eligible individuals and families can also get free help preparing their tax return from IRS-certified volunteers at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. Taxpayers can generally qualify for VITA services if they earn $67,000 or less. TCE sites also offer free tax help but with priority assistance to people who are 60 years of age and older. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887.

Red flags

It’s important for taxpayers to recognize red flags when choosing a tax professional.

“Ghost” preparers – Be wary of anyone who won’t sign the tax return as the paid preparer and asks the taxpayer to sign and file the return themselves. The IRS requires tax preparers to sign returns and not doing so is a red flag and may signal fraud. These “ghost” preparers may be looking to make a quick profit and promise large refunds or charge fees based on the refund amount.

These unscrupulous “ghost” preparers often print the return and have the taxpayer sign and mail it to the IRS. For electronically filed returns, a “ghost” preparer will prepare the tax return but refuse to digitally sign it as the paid preparer. Taxpayers should avoid this type of unethical behavior as it can indicate fraud.

Valid ID for tax preparers – Taxpayers should always choose a tax preparer with a valid Preparer Tax Identification Number (PTIN). By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid PTIN. Paid preparers must sign and include their PTIN on any tax return they prepare.

Tips for choosing a tax return preparer

Here are some additional tips to consider when choosing a tax professional.

• Look for a preparer who’s available year-round. Questions may come up about a tax return after filing season ends and it’s helpful to contact the preparer when needed.

• Review the preparer’s history using the Better Business Bureau website. Look for disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy’s website, and for attorneys check with the State Bar Association. For enrolled agents go to IRS.gov and search for “verify enrolled agent status” or check the IRS Directory of Federal Tax Return Preparers.

• Discuss service fees upfront. Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own accounts. Be wary of those who claim they can get larger refunds than their competitors.

• Find an authorized IRS e-file provider. They are qualified to prepare, transmit and process e-filed returns. Filing electronically and choosing direct deposit can result in faster refunds, often within 21 days.

• Provide records and receipts. Trustworthy preparers will request proper documentation and ask questions to determine the client’s total income, deductions, tax credits and other relevant details. Do not hire a preparer who e-files a tax return using a pay stub instead of a Form W-2. This is against IRS e-file rules.

• Understand the preparer’s credentials and qualifications. Attorneys, CPAs and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent taxpayers in limited situations if they prepared and signed the tax return.

• Never sign a blank or incomplete return. Taxpayers are responsible for filing a complete and correct tax return.

• Review the tax return carefully before signing it. Be sure to ask questions if something is not clear or appears inaccurate. Any refund should go directly to the taxpayer – not into the preparer’s bank account. Review the routing and bank account number on the completed return and make sure it’s accurate.

Source: IRS-2025-21, Feb. 3, 2025

The Internal Revenue Service today provided taxpayers with six tips to make filing their 2024 tax return easier.

Most of the information below is also available on the IRS.gov Let us help you page. Taxpayers should follow these handy suggestions as they prepare to file:

1. Gather all important and necessary tax paperwork and records needed for filing a complete and accurate tax return.Errors and omissions can lead to missing a deduction or credit and slow down tax return processing and refunds.

   Before filing , taxpayers should have their:

   • Social Security numbers for everyone listed on the tax return.
   • Bank account and routing numbers.
   • Tax forms such as W-2s, 1099s, 1098s, records of digital asset transactions and other income documents.
   • Form 1095-A, Health Insurance Marketplace statement.
   • IRS letters they may have citing an amount received for a certain tax deduction or credit.
2. Report all types of income on the tax return to avoid receiving a notice or a bill from the IRS. Include income from:
   • Goods created and sold on online platforms.
   • Investment income.
   • Part-time or seasonal work.
   • Self-employment or other business activities.
   • Services provided and paid through mobile apps.
3. Avoid paper returns. Filing electronically with direct deposit is the fastest way to get a refund. Plus, tax software helps taxpayers avoid mistakes. It does the math and guides people through each section of their tax return.
4. Consider IRS free resources to help eligible taxpayers file.
   • IRS Free File provides a free online alternative to filing a paper tax return to any individual or family who earned $84,000 or less in 2024.
   • Direct File is available in 25 participating states for eligible taxpayers to file online directly with the IRS for free. This year, Direct File supports reporting more income types and claiming more credits and deductions. The free web-based service – available in English and Spanish – provides access to IRS customer service representatives through a live chat feature and works on mobile phones, laptops, tablets or desktop computers. Direct File guides taxpayers through a series of questions to prepare their federal tax return step-by-step and automatically guides taxpayers to state tools to complete their state taxes.
   • People who make over $84,000 can use the IRS’ Free File Fillable Forms. These are the electronic version of IRS paper forms. This product is best for people who are comfortable preparing their own taxes.
   • People who generally make $67,000 or less, persons with disabilities, limited English-speaking taxpayers and those who are 60 years of age and older, can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
   • The Department of Defense provides MilTax as a free tax resource for the military community. MilTax is a suite of tax services available for members of the military, as well as qualifying veterans and family members. There are no income limits. Eligible taxpayers can use MilTax to electronically file a federal tax return and up to three state returns for free.
5. Choose tax filing options based on personal situation and comfort level with tax preparation
   • Personally file taxes.
   • Use online filing services.
   • Hire a tax professional and choose carefully. Most tax return preparers are professional, honest and provide excellent service to their clients. However, dishonest tax return preparers who file false income tax returns do exist. The IRS has a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications and more on choosing a tax proon IRS.gov.
6. Use online resources at IRS.gov to quickly get answers to tax questions, check a refund status or pay taxes. There’s no wait time or appointment needed. Online tools and resources are available 24 hours a day, including the IRS’ Interactive Tax Assistant tool and Let us help you resources, which are especially helpful.

Stay updated

• Follow the IRS’ official social media accounts and email subscription lists to stay current on the latest tax topics and alerts.
• Download the IRS2Go mobile app.
• Watch IRS YouTube videos.

Source: IRS-2025-19, Jan. 30, 2025

As tax filing season nears, the Internal Revenue Service reminds businesses to submit wage statements and certain information returns to the federal government by Jan. 31.

Filing the required forms by deadline and without errors not only helps payers and recipients avoid penalties, it also helps the IRS fight fraud by making it easier to verify income information.

The Jan. 31 deadline applies to:

• Employers filing Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration.
• Payers filing Form 1099-NEC, Nonemployee Compensation, with the IRS.

Jan. 31 is also the deadline to:

• Furnish copies of W-2, Form 1099-NEC and other information returns to the recipients. See each form’s filing instructions for the due dates to furnish copies to recipients.

E-filing

Filing electronically is the fastest, most convenient way to accurately submit forms.

As of last year, W-2s and certain other forms must be filed electronically if submitting 10 or more information returns during a calendar year. For more details, including a list of information returns subject to the new e-filing rules, see E-file information returns.

The IRS also offers free e-filing for the 1099 series using the Information Returns Intake System (IRIS), an online portal where users can prepare copies of forms to furnish, file correction and request automatic extensions.

Requesting extensions

While employers and payers may request a 30-day extension to file W-2s or certain information returns, approvals of extensions are not automatic. To request extra filing time, submit Form 8809, Application for Extension of Time to File Information Returns PDF, by Jan. 31 or by the due date of the returns being requested.

Please note that filing a Form 8809 does not extend the deadline for furnishing wage statements to employees or information returns to the payees. Those requests must be faxed to IRS in letter form by Jan. 31. Please see About Form 8809, Application for Extension of Time to File Information Returns, for more information.

Potential penalties

If employers and payers haven’t already, start preparing filings now so there is time to double check the accuracy of the forms and file and furnish them by Jan. 31.

Penalties may apply filings are untimely, inaccurate and/or improperly submitted to the federal government on paper. For more information, including a breakdown of potential penalties and interest, visit the Information Return Penalties page at IRS.gov.

Additional resources

Use the IRS’s forms, instructions and publications search tool to look up more information about or instructions for all current IRS forms, including those listed above, or visit the Forms, instruction and publications page on IRS.gov.

Source: IRS-2025-15, Jan. 15, 2025