The IRS Increases Enforcement in 2025: What Taxpayers Need to Know
Hi Hive, As 2025 begins, the Internal Revenue Service (IRS) is strengthening its enforcement efforts, with a focus on closing the tax gap and ensuring compliance among individuals and businesses alike. With increased funding and technological advancements, taxpayers should be prepared for heightened scrutiny, particularly in areas related to unreported income, deductions, and digital transactions. Key Areas of IRS Focus in 2025 1. Stronger Enforcement on High-Income Earners and Businesses The IRS is ramping up audits and investigations, particularly targeting high-net-worth individuals, corporations, and self-employed professionals who may have underreported earnings. Enhanced data analytics and artificial intelligence tools will allow the agency to detect discrepancies more efficiently. 2. Digital Transactions Under Greater Scrutiny As cashless transactions continue to grow, platforms such as PayPal, Venmo, and Cash App are now required to report business transactions...