Welcome to the new year.

Numerous changes to the federal tax law, and uncertainties about the process at the IRS, make this season more complex than recent years.

REFUND CHECKS- New for 2025 returns-An important change in process. IRS will generally stop issuing paper checks for tax refunds. They stress the need to have a bank or credit union account to receive refunds. Although not an official announcement, CPA’s have been informally advised that if there is no bank account provided on the tax return, the IRS will hold the refund for several weeks while they send correspondence asking you to supply that information. If you refuse to comply, the refund may be issued as a debit card, sent through US Mail. Perhaps you will recall that they did this with the stimulus payments during the COVID crisis, it was a mess!

PAYMENTS TO IRS- The best way to pay IRS is to authorize an electronic withdrawal on an e-filed tax return. The payment may be scheduled for withdrawal on any date before April 15. I usually suggest April 11. You may also use “Direct Pay” on the IRS.gov website. Please remember the new postal changes mean you will not have a postmark unless you hand the item to the clerk.

The IRS is encouraging every taxpayer to establish an online account. To do this, you must be enrolled in ID.Me. I found this to be a very high-stress process. I won’t be able to assist with this as it requires real-time photos as part of the registration. If you are making payments for a Trust, you will be required to enroll in EFTPS. Visit irs.gov/payments for more information.

CLOSING EASTON AVE office. This will be the last season for the office on Easton Ave.

I came with the intention to stay two years; it has been 24. The stairs and multi-year leases no longer work for me. I will continue to support clients that can use the portal to send encrypted materials. Without conference space, I will use the ZOOM program for necessary conversations. Please check your records and make sure you have copies of tax years 2023-2025, and any important documents like closing statements, as I will be shredding all old materials when I empty the space.

IRS Filing Season opens Jan 26. You may drop your materials at the office on Monday—Saturday. The drop-box at my home will be available when we can get it installed. Please contact me before dropping-off materials. There will be some limited in-person appointments mid-day on Wednesdays and Saturdays.

I regret that turnaround time is likely to be longer this year. Some people who have taken the standard deduction in previous years may need to itemize this year as the ceiling on state and local taxes has been raised to $40,000 instead of $10,000. This deduction, like most of the other new deductions, is limited if the adjusted gross income exceeds a threshold amount.

Topics with changes for 2025 or 2026 include: Standard Deduction, Qualified Tips, Qualified Overtime Pay, Qualified Vehicle Loan Interest, Charitable Contributions, Educator Expenses, Gambling Losses, Child Tax Credit, and others.

Please review information on SomersetTaxServices.com, especially the newsletters for Nov., Dec, & Jan. Also use the link to financial calculators and select 1040 Tax Calculator for extensive information on many topics.

Looking forward to hearing from you.

May All Be Well, Shirley

sypcpa@verizon.net