Tax News Roundup - November 2025
Important tax news you need to know
This month’s Tax News Roundup reviews the following news items:
Government Shutdown Continues
Updated Tips and Overtime Reporting Guidance Released
Updated Form 1099-K Guidance Released
Recent Disaster Postponements
ACA Open Enrollment and Premium Pricing (paid subscribers only)
Sunsetting Tax Provisions (paid subscribers only)
2025 Digital Asset Reporting (paid subscribers only)
Government Shutdown Continues
The federal government shutdown continues with no end in sight. The IRS shutdown contingency plan indicates that approximately 40,000 of the IRS’s workforce is not furloughed, which is about 53% of the total staff. General telephone assistance and Transcript Delivery Service (TDS) are still available.
The U.S. Tax Court announced the cancellation of the October 20, October 27, and November 3 trial sessions. All future trial sessions will likely be cancelled until the federal government reopens. The Clerk’s Office remains open for eFiling and paper filing of Tax Court petitions, so there is no extension of the time to file a Tax Court petition under §7451(b).
Updated Tips and Overtime Reporting Guidance Released
In Notice 2025-62, the IRS stated that it will not impose penalties on payors who do not report amounts reasonably designated as cash tips or the occupation of the person receiving such tips for tax year 2025. Employers and payors are encouraged to provide employees and payees, particularly those in a tipped occupation, with the occupation codes and separate accountings of cash tips, along with information regarding whether the employer’s trade or business is an SSTB.
Employers and payors can make such information available to their employees and payees through an online portal, additional written statements furnished to the employees or payees, or other secure methods.
In Notice 2025-62, the IRS stated it will not impose penalties on employers and payors who do not report amounts reasonably designated as qualified overtime compensation. Employers and payors are encouraged to provide employees and payees with separate accountings of overtime compensation.
Employers and payors can make such information available to their employees and payees by including it in box 14 of the employee’s Form W-2, or through an online portal, additional written statements furnished to the employees or payees, or other secure methods.
Updated Form 1099-K Guidance Released
The IRS released Fact Sheet 2025-08 due to the changes to the Form 1099-K threshold in the One Big Beautiful Bill Act (OB3 Act). §70432 restored the Form 1099-K reporting threshold to $20,000 in gross payments and 200 transactions during the calendar year. This change applies retroactively as if it were included in the American Rescue Plan Act (the law that changed it in the first place in 2021).
Two important notes from the revised guidance:
Many states have lower Form 1099-K reporting thresholds; therefore, the federal change may have no impact on a significant number of taxpayers. Stripe maintains a listing of the state Form 1099-K thresholds.
Schedule 1 will continue to have a section to report Form 1099-K amounts that are either erroneous or attributable to the sale of personal goods for a loss.
Recent Disaster Postponements
AK-2025-04: Parts of Alaska
Deadlines starting October 8, 2025 postponed to May 1, 2026
SD-2025-01: Parts of South Dakota
Deadlines starting June 12, 2025 postponed to February 2, 2026