The Internal Revenue Service ended 2024 by debuting regulations on reporting cryptocurrency transactions, amendments for outdated provisions, updates for standard mileage rates and more. And as President-elect Donald Trump gets ready for his second term in office, professionals are looking ahead to what the 2026 tax landscape will look like.
Trump was vocal throughout his campaign about working to extend many of the provisions of his landmark Tax Cuts and Jobs Act of 2017 that are set to expire at the end of this year. Recently, he
Representative Nick LaLota, R-N.Y., said in an interview with Bloomberg that he and a small group of four other representatives are working to push forward a bill to "reasonably adjust" the current $10,000 cap on SALT deductions.
"There are five very salty Republicans — I would expect that somebody in his position would appreciate that dynamic and would want to provide an accommodation to get the bill passed," he said. "The five of us have the opportunity to effectuate an even more beautiful, big bill."
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Most of the current regulations will be in place for the majority of the 2025 tax season, with the steadily gaining pace of regulatory proposals making planning ahead for 2026 one of the key priorities for tax professionals.
Randy Hughes, CEO of Atlanta-based Counting Pennies and co-founder of Seven Figure Profits, said in an interview with Accounting Today that Trump's return is a likely signal that the current tax landscape would be renewed into next year with some additional provisions.
"The most significant changes include potential new regulations around cryptocurrency transactions, increased IRS scrutiny on high earners and adjustments to clean energy credits," Hughes said. "Most changes will not be changes to tax law, but the implementation of laws that are already in place … so being familiar with this implementation is important."
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Learn more about the IRS's new rules on crypto reporting, accounting methodology changes and more below.
New rules from IRS on DeFi tax reporting cross the finish line
The IRS released
The new requirements take effect for DeFi companies starting Jan. 1, 2027, after responses gathered in the initial stages of the regulations led the IRS and the Treasury to push back the deadline by two years. Individual cryptocurrency brokers, traders, banks and more are subject to the updated rules as of Jan. 1.
"Although the applicability date proposed by the proposed regulations applied to gross proceeds reporting for sales of digital assets effected on or after Jan. 1, 2025, the Treasury Department and the IRS agree that a delay is warranted for trading frontend service providers treated as brokers (DeFi brokers) under these final regulations," the regulation states.
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New crypto rules from IRS will create an information avalanche
Following the Jan.1 effective date of the IRS's new 1099-DA and finalized regulations for reporting decentralized finance transactions, accountants across the profession worry that many brokers and taxpayers will struggle to quickly adapt to the changes.
"The fact that the IRS is now going to get information about the transactions, and how inaccurate the information will be, is really underappreciated at this point," James Creech, a director in the tax advocacy and controversy practice of Top 10 Firm Baker Tilly, said in an interview with Accounting Today's
He further mentioned that the utility of the information gathered through Form 1099-DA reportings will vary in accuracy for the first few years as all eligible parties become familiar with the requirements and standards.
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IRS expands waiver of eligibility for accounting method changes
The IRS's newly debuted
Expanded rules include those in Section 5.01(1)(d) and (f) of Rev. Proc. 2015-13 to accounting method changes described in Section 7.01 of Rev. Proc. 2024-23 that are made for any taxable year beginning in 2022, 2023 or 2024.
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IRS proposal seeks to add tech competency for tax professionals
Last month, the IRS and Treasury Department released
The proposed changes are limited to affect only those who practice before the IRS, and include the following updates, among others:
- Eliminating provisions related to registered tax preparers;
- Classifying the use of certain contingent fee arrangements by practitioners as disreputable conduct;
- Establishing new standards for appraisals and the disqualification of appraisers; and
- Providing rules related to appraisers, including the standards for disqualification.
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IRS increases standard mileage rate for 2025
The tax service increased its optional standard mileage rate for 2025 by three cents for vehicles driven for business purposes, while other rates remain unchanged since last year.
The rates applicable to cars, vans, pickups or panel trucks, including fully electric and hybrid vehicles, are as follow s:
- 70 cents per mile
driven for business use , up three cents from 2024; - 21 cents per mile driven for medical purposes, the same as in 2024;
- 21 cents per mile driven for moving purposes for qualified active-duty members of the Armed Forces, unchanged from last year; and,
- 14 cents per mile driven in service of charitable organizations, equal to the rate in 2024.
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