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Ext. PublicationThe Tax Navigator – IRS Rules, ERC Deadlines and 2025 Government Shutdown Impact
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Join Sean Muller, The Tax Navigator, as he explores recent developments during the ongoing government shutdown concerning IRS tax regulations, ERC deadlines and international trade agreements.
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Detailed Description of The Tax Navigator – Key Updates on Government Shutdown and Tax Regulations
00:00:00
Sean: Alright. So, I’m going to support the man behind the camera today who went to Mississippi State in search of a win. So, I told him on Saturday night, I would wear a maroon coat for him. He believes I’m rubbing it in to him, but I’m trying to support him because he deserves a victory.
00:00:13
Sean: We’re in week five of a government shutdown, and in my tribute to the shutdown, I’ve got a stye on my eye that will not go away until the shutdown is over. So, I gotta get that done, and we gotta get Congress back in session.
00:00:26
Sean: Where we stand on that is a federal union asked the Democrats to agree to a short-term funding plan. The Democrats said no. The House won’t even meet to vote.
00:00:39
Sean: The Democratic senators just voted down a plan to pay the military and other folks because they didn’t want to give President Trump the authority to pay who he wanted to pay.
00:00:48
Sean: They were trying to pay air traffic controllers in the military, and the Democrats voted that bill down. So, there really is no update and no end in sight.
00:00:56
Sean: But with all that being said, the IRS is still releasing rules left and right, which is shocking. They did release an update about operations of the IRS right now. If you have timely filed a return with no errors, they will process your refund. They will process payments that go in. So, hopefully, everyone still filed and made their payments. What they will not do is they will not meet with you in person and any audits that are in the works right now are halted moving forward, and there’s limited telephone assistance. So, the IRS is still working.
00:01:29
Sean: They have released a notice on auto loan interest as part of the One Big Beautiful Bill Act we talked about before. If you buy a car, a brand-new car, final assembly in the U.S., the interest is deductible, subject to income limitations.
00:01:47
Sean: As part of the bill, there was a statement that was required that listed, you know, name, interest, paid, etc., during the year, very similar to a house 1098 form they were going to release. Well, the IRS and Treasury never released this form, so they released a notice last week that gave you relief for that.
00:02:06
Sean: And so as long as the auto loan company can provide a statement, whether it be a monthly statement, annual statement, online portal, anything possible that shows how much interest you paid during 2025, you can claim that in your tax return, and that would be on Schedule 1-A along with the tips and the overtime.
00:02:27
Sean: They also released some regulations or a notice in the fact sheet about Form 1099-K reporting, so payments for goods and services that you do. They did reaffirm back to the rules prior to 2021 that you would receive a 1099K if you sold more than $20,000 worth of goods where you had over 200 transactions. So that went back to the ’21 rules that were coming into play. The 2021 bill that came out tried to limit that to $600, and then they kept changing the rules, delaying, delaying, delaying, but the One Big beautiful Bill Act went back to the original number of $20,000.
00:03:04
Sean: They also released a fact sheet on ERC claims that were filed after January 31, 2024. And January 31, 2024, was this magical date even under the Biden administration that said you couldn’t file an ERC claims after January 31, 2024. The bill never passed related to that, and so some folks did file refund claims after January 31, 2024. The One Big Beautiful Bill Act said January 31, 2024, is still the magic date, so any claims after that are not going to be refunded. But if a taxpayer did receive a refund for a claim filed after January 31, 2024, and they received it prior to July 5, 2025, they can keep the money. But if they didn’t, they’re getting no refund whatsoever, and they’re not going to have their claim processed.
00:03:56
Sean: One other thing that came up about all this is that just a tariff update. President Trump is in Southeast Asia right now. He’s been to a meeting with China. We’re supposed to have a framework of a Chinese tariff deal right now. He has told Canada we’re not doing a deal. He’s given temporary hold with Mexico. He’s reached a trade deal with Malaysia and Vietnam.
00:04:19
Sean: So, still lots going on with the government on these pieces, but we’re still in a shutdown.
This episode of The Tax Navigator was recorded prior to publication. Some references or updates discussed may reflect information current as of the recording date.
