September 2025: IRS USA Tax Updates

IRS Urges Emergency Preparedness as Hurricane and Wildfire Risks Rise

The IRS urges creating or updating emergency plans during National Preparedness Month. And emphasizing safeguarding documents, inventorying assets, and using IRS resources for disaster relief. Key actions include storing records securely, documenting property, and accessing filing/payment extensions in federal disaster areas. 

Read the article here: IRS urges emergency preparedness ahead of peak disaster | Internal Revenue Service 

IRS Alerts Taxpayers to Avoid Costly Social Media Tax Credit Scams

The IRS warns of rising tax scams on social media promoting fraudulent claims for credits. So Credit like the Fuel Tax Credit and Sick. And Family Leave Credit, leading to denied refunds and penalties up to $5,000. Taxpayers should verify claims with IRS.gov, amend incorrect returns using Form 1040-X, and report scams. 

Read the article here: IRS assesses $162 million in penalties over false tax credit claims tied to social media | Internal Revenue Service 

SECURE 2.0: IRS Issues Final Rules on Roth Catch-Up and Retirement Provisions

The Treasury and IRS issued final regulations for SECURE 2.0 Act provisions, mandating that catch-up contributions for higher-income participants in 401(k) plans be Roth (after-tax) contributions, effective generally for taxable years after Dec. 31, 2026. The rules also address increased catch-up limits for ages 60-63 and SIMPLE plans, with adjustments based on public comments. 

Read the article here: Treasury, IRS issue final regulations on new Roth catch-up rule, other SECURE 2.0 Act provisions | Internal Revenue Service 

IRS Tax Tips

IRS Details Educational Assistance Programs for Tax-Free Benefits

Employers can offer tax-free educational assistance up to $5,250 per employee annually to cover student loan payments, tuition, books, and other eligible education expenses, but not meals, lodging, or non-essential supplies. 

Read the article here: Employers may help with college expenses through educational assistance programs | Internal Revenue Service 

IRS Highlights Tax Credits for Hiring Disadvantaged Workers

The Work Opportunity Tax Credit (WOTC), available until Dec. 31, 2025, offers employers a federal tax credit for hiring individuals from groups facing employment barriers. Such as long-term unemployed, veterans, or formerly incarcerated individuals. Employers must certify eligibility using Form 8850 within 28 days of hiring and claim the credit on Forms 5884 or 5884-C (for tax-exempt organizations). 

Read the article here: The Work Opportunity Tax Credit is available until the end of 2025 | Internal Revenue Service 

IRS Statement and Announcements

IRS Issues Early Draft of Form 1099-DA for 2026 Tax Filing

The IRS released an early draft of Form 1099-DA instructions for digital asset brokers to report digital asset sales/exchanges starting in 2025, with forms due to taxpayers. And the IRS in early 2026. An updated draft form with minor changes is available, and a 30-day public comment period will open soon via the Federal Register. 

Read the article here: Draft instructions to Form 1099-DA posted to IRS.gov as well as an updated Form 1099-DA | Internal Revenue Service

IRS Provides Tax Relief for Farmers Affected by Drought

The IRS announced guidance allowing farmers and ranchers in drought-affected areas to defer capital gains tax on livestock sold or exchanged due to drought. Eligible livestock must generally be replaced within four years, with the IRS able to extend this period if drought conditions persist. 

Read the article here: IRS extends relief to farmers and ranchers affected by drought in 49 states, other regions | Internal Revenue Service