Tax updates and news from the IRS

Get critical updates that may affect your tax filing and recent IRS news.

On this page

• Filing
• Inflation adjustments
• COVID-era tax credits
• Disaster tax relief
• Clean vehicle and energy credits

Filing

Free tax filing options – 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. For military members and some veterans, MilTax generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns.

Form 1099-K – Payment card and third party network transactions – The One, Big, Beautiful Bill retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA so that a third party settlement organization (TPSO) is not required to file a Form 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200. Taxpayers who receive payments in excess of these thresholds should expect to receive a Form 1099-K in January of the year following the tax year. A copy of this form will also be sent to the IRS.

Inflation adjustments

• For tax year 2025 – The annual inflation adjustments for tax year 2025. Revenue Procedure 2024-40 provides detailed information on adjustments and changes to more than 60 tax provisions that will impact taxpayers when they file their returns in 2026.
• For tax year 2024 – The annual inflation adjustments for more than 60 tax provisions for tax year 2024, including the tax rate schedules and other tax changes. Revenue Procedure 2023-34 provides detailed information about these annual adjustments.

Standard mileage rates:

• For 2025 – Beginning on Jan. 1, 2025, the optional standard mileage rate for automobiles driven for business increased by 3 cents in 2025, while the mileage rates for vehicles used for other purposes remained unchanged from 2024.
• For 2024 – Beginning on Jan. 1, 2024, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are 67 cents per mile driven for business use. For details, see IRS issues standard mileage rates for 2024; mileage rate increases to 67 cents a mile, up 1.5 cents from 2023

COVID-era tax credits

Employee Retention Credit: Resolving incorrect claims – Generally, businesses can’t claim the Employee Retention Credit after April 15, 2025. However, the IRS continues to urge employers to review their ERC claims. Resources to check ERC eligibility:

• Warning signs of incorrect claims
• ERC Eligibility Checklist (interactive tool on IRS.gov)
• Frequently asked questions on ERC at IRS.gov/ercfaq

If a business has an incorrect claim still pending, they should consider the claim withdrawal program that allows them to withdraw a pending ERC claim with no interest or penalties.

Disaster tax relief

Tax relief is available for people living in areas affected by federally declared disasters. To find out whether an area qualifies taxpayers can visit Around the nation.

Clean vehicle and energy credits

You may be eligible for tax credits if you’ve purchased a clean vehicle or made your home more energy efficient. See Credits and deductions under the Inflation Reduction Act.