Tax updates and news from the IRS | Internal Revenue Service

Tax updates and news from the IRS

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

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Filing season

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 online marketplace transactions The Internal Revenue Service issued Notice 2024-85 providing transition relief for third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, regarding transactions during calendar years 2024 and 2025.

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 PDF in January 2025. A copy of this form will also be sent to the IRS.

Inflation adjustments

Standard mileage rates:

Covid-era tax credits

2021 Recovery Rebate Credit – In December 2024, the IRS began issuing payments to eligible people who did not claim the Recovery Rebate Credit on their 2021 tax returns. All payments should have been received by late January 2025, and taxpayers did not need to take any action to receive these payments.

Puerto Rico families can claim the Child Tax Credit Families with children in Puerto Rico who don't owe taxes to the IRS can still file their 2021 tax return at any point until April 15, 2025, and claim without penalty the Child Tax Credit of $3,600 per child.

Employee Retention Credit: Resolving incorrect claims The IRS continues to urge employers to review their ERC claims. There is limited time to resolve incorrect claims without penalties and interest. Resources to check ERC eligibility:

If their incorrect claim is 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.