In a December 2024 release, the IRS said it was continuing to improve taxpayer services to help people prepare for tax season with more digital tools and options available. Even though you’re working with a tax pro, there are things you can do in advance to help yourself.
The IRS’s Get Ready page on IRS.gov offers practical tips and resources to help taxpayers prepare. It highlights key updates and important steps for taxpayers to consider to make tax filing easier in 2025.
You can create or access an IRS Online Account at online account for individuals. With an IRS Online Account, they can:
- View key details from their most recent tax return, such as adjusted gross income.
- Request an Identity Protection PIN.
- Get account transcripts to include 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.
Get your PIN
An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using your Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of taxpayers’ personal and financial information.
The best way to sign up for an IP PIN is through the IRS Online Account. If an individual is unable to create an Online Account, alternative methods are available, such as in-person authentication at a Taxpayer Assistance Center. More information is available on how to sign up at IRS Online Account.
1099-K reporting changes
Taxpayers who received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K in January 2025. A copy of this form will be sent to the IRS as well.
Although the IRS has said it is taking a phased-in approach to implementation of the Form 1099-K reporting threshold, be advised that there have been no changes to the taxability of income. All income, including proceeds from part-time work, side jobs or the sale of goods and services is taxable. You must report all income on your tax return unless it’s excluded by law, whether you receive a Form 1099-K or not. The law doesn’t allow taxpayers to avoid taxes on income earned just because they didn’t get a form reporting the payments received.
The reverse is also true: you should alert your professional tax preparer if you have received a Form 1099-K but shouldn’t have. Either way, good recordkeeping is key to quick resolutions. In this, as in tax preparation generally, be guided by your tax professional.
Prepare to include digital assets on taxes in 2025
Just like previous filing years, you must report all digital asset-related income when you file, emphasizes the IRS. A digital asset is property that is stored electronically and can be bought, sold, owned, transferred or traded. Examples include convertible virtual currencies and cryptocurrencies, stablecoins and non-fungible tokens.
If you had digital asset transactions, be sure to keep records that prove their purchase, receipt, sale, exchange or any other disposition of the digital assets. That includes the fair market value, as measured in U.S. dollars, of all digital assets received as income or as a payment in the ordinary course of a trade or business. This can get complicated, so again, have records ready to discuss with your tax preparer.
Understand refund timing
Several factors can influence the timing of a refund after the IRS receives a tax return. While the IRS issues most refunds in less than 21 days, it advises taxpayers not to depend on receiving a 2024 federal tax refund by a specific date for major purchases or bill payments. Some returns may require additional review and take longer to process if there are possible errors, missing information, or indications of identity theft or fraud.
Additionally, under the PATH Act, the IRS cannot issue refunds for tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. The IRS must hold the entire refund—not just the portion associated with these credits—until the review is complete.
Gather and organize 2024 tax documents
To make tax time easier, advises the IRS, you should establish an effective recordkeeping system, either electronic or paper, to organize all important documents in one place. This includes yearend income forms such as:
- Forms W-2 from employers.
- Forms 1099 from banks or other payers
- Forms 1099-K from third-party payment networks.
- Forms 1099-NEC for nonemployee compensation
- Forms 1099-MISC for miscellaneous income
- Forms 1099-INT for interest income and records of all digital asset transactions.
Watch the calendar
Even if you suspect you may owe the IRS, you’re still better off filing sooner rather than later. When you believe you have all your tax forms, make an appointment with your tax adviser.