As 2025 gets underway, business owners across the United States are navigating a wave of new tax regulations from the Internal Revenue Service (IRS). These changes are not only the result of the IRS’s routine inflation adjustments but also stem from the sunsetting provisions of the 2017 Tax Cuts and Jobs Act (TCJA), new digital reporting standards, and enhanced scrutiny of cryptocurrency transactions.
Whether you’re a small business owner, sole proprietor, or manage a growing company, these new regulations could significantly affect your bottom line. For those in Eastern Idaho, now is an excellent time to consult a trusted accountant Idaho Falls to ensure your business is prepared for the year ahead.
Let’s break down the most important IRS changes for 2025—and what they mean for your business.
1. Updated Tax Brackets and Deductions
The IRS has announced inflation-based adjustments to the federal income tax brackets for 2025. The standard deduction has increased to $15,000 for single filers and $30,000 for married couples filing jointly, which may affect how much income is taxed.
For businesses structured as pass-through entities (like sole proprietorships, partnerships, or S corporations), these bracket changes may influence how much of your earnings are taxed at the individual level. It’s also worth considering whether any restructuring or timing of income could benefit your tax strategy.
Working with an experienced accountant in Idaho Falls can help you assess how these bracket adjustments will affect your tax liability and ensure you’re optimizing your filings under the new rules.
2. Changes to the Qualified Business Income (QBI) Deduction
One of the most talked-about potential changes for 2025 is the fate of the Qualified Business Income (QBI) deduction, which currently allows many small businesses to deduct up to 20% of their qualified business income.
This provision, introduced in the TCJA, is set to expire at the end of 2025 unless Congress acts to renew or modify it. If the QBI deduction is eliminated or significantly changed, many business owners could see their effective tax rates increase.
Now is the time to start planning. A qualified accountant in Idaho Falls can help you understand how the possible expiration of the QBI deduction could affect your business and develop a strategy to maximize deductions while they’re still in effect.
3. New Digital Payment Reporting Requirements
The IRS is ramping up reporting requirements for digital payment platforms like Venmo, PayPal, Square, and Cash App. Previously, these platforms were only required to report business transactions if they exceeded $20,000 and 200 transactions in a calendar year. Starting in 2025, that threshold has been lowered to just $5,000, making it much more likely that small businesses and freelancers will receive Form 1099-K.
If your business collects payments through these platforms—even sporadically—you’ll need to ensure proper bookkeeping to match the reported income. This transparency helps reduce underreported income, but it also increases your recordkeeping burden.
To avoid errors or double-counting income, work with an accountant in Idaho Falls who understands the nuances of these new reporting rules.
4. Cryptocurrency and Digital Asset Regulations
Another major update for 2025 is the introduction of Form 1099-DA, which formalizes the reporting of cryptocurrency transactions. If your business deals in Bitcoin, Ethereum, or any other digital assets, this change directly impacts your compliance requirements.
The IRS is now requiring exchanges and brokers to report certain digital asset sales and transfers, just like they do with stocks. Businesses will need to track gains and losses more precisely and report crypto income with greater accuracy.
Cryptocurrency regulations are evolving rapidly. Partnering with a knowledgeable accountant in Idaho Falls who stays current with crypto-related tax law can help you avoid costly mistakes.
5. Standard Mileage Rate Increase
The standard mileage reimbursement rate for 2025 has increased to 70 cents per mile, up from 65.5 cents in 2024. If your business involves regular travel—whether for client meetings, deliveries, or job site visits—this change can affect your expense deductions and employee reimbursements.
Make sure you’re logging mileage properly and calculating the deduction correctly. A professional accountant can help set up a mileage tracking process that keeps you compliant and audit-ready.
What These Changes Mean for Your Business
These new IRS regulations represent more than just tweaks to the tax code—they could reshape how your business handles financial reporting, payroll, digital transactions, and long-term planning. Even seemingly small adjustments, like changes to the mileage rate or reporting forms, can create headaches if you’re unprepared.
Taking a proactive approach now can help you avoid problems down the line. And that’s where working with an experienced accountant in Idaho Falls becomes essential. An accountant can help you:
- Adjust to new tax brackets and thresholds
- Prepare for the phase-out of key deductions
- Ensure compliance with digital reporting rules
- Maximize expense deductions and credits
- Navigate cryptocurrency reporting
- Plan ahead for 2026 and beyond
Accountant Idaho Falls
The IRS changes for 2025 are substantial—and they’re just the beginning of what may be a larger overhaul in tax policy in the years to come. For business owners, staying informed is important, but having a trusted advisor in your corner makes all the difference.
If you’re feeling overwhelmed by the new regulations, now is the perfect time to consult a reliable accountant in Idaho Falls. With the right guidance, you can turn these tax changes into an opportunity to streamline your operations, protect your profits, and plan for a financially secure future.
Need help preparing for the 2025 tax season? Reach out to an expert accountant in Idaho Falls today to stay ahead of the curve and keep your business financially healthy.
