Issue Number: 2025-07
Inside This Issue
Millions sign up for Trump Accounts
More than 4 million children have been signed up for the Trump Accounts. The One, Big, Beautiful Bill established the Trump Accounts and the Trump Account contribution pilot program allowing taxpayers to establish an individual retirement account for children under 18 and receive a $1,000 federal seed contribution.
The eligibility requirements for a Trump Account and the pilot program are:
- Trump Account is new type of individual retirement account for an eligible child who meets the age requirement and has valid Social Security number
- Trump Accounts pilot program offers a $1,000 federal seed contribution for children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens with a valid Social Security number
Qualifying taxpayers must use Form 4547, Trump Account Election(s) to establish a Trump Account and to enroll in the pilot program with their tax year 2025 return.
For more information on Trump Accounts visit trumpaccounts.gov.
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How the One, Big, Beautiful Bill helps gig economy workers
New provisions in the One, Big, Beautiful Bill lessen tax burden for gig economy workers.
Here are the notable changes that affect gig economy workers.
- No tax on tips deductions: Eligible gig economy workers can deduct up to $25,000 in qualified tips based on filing status from their taxable income from tax year 2025 through 2028\
- Permanent Qualified Business Income deduction: This deduction is now permanent and allows eligible workers to plan long term to maximize benefits. Certain tip income may be excluded when computing QBI.
- Form 1099-K and the increased reporting threshold: Third party payment platforms must issue a Form 1099-K if the payments made during the calendar year is more than $20,000 and more than 200 transactions. Taxpayers must report all income when they file their tax return regardless of whether they receive a Form 1099-K or other information return
- Bonus depreciation: The law allows 100% bonus depreciation on certain assets acquired after Jan. 19, 2025. This allows gig workers who buy certain qualifying property solely for use in their business.
Visit the One, Big, Beautiful Bill Provision on IRS.gov for more information.
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Beware of tax scams related to the One, Big, Beautiful Bill
Scammers frequently exploit new or complex tax laws by spreading misinformation and making false promises. Businesses and individual taxpayers should watch for OBBB-related scams and take steps to protect their personal and financial information.
Here are some scams to watch for:
- Ghost preparers exploiting new credits
- Tips and overtime deduction scams
- Deduction for senior enrollment scam
- Fake OBBB credit or deduction outreach\
- Refund advance or fast OBBB payout scams
- Social media and influencer tax scams
Common red flags of these scams include:
- Requests for personal or financial information by text, email, or social media
- Promises of guaranteed or unusually large refunds
- Fees to “enroll,” “activate,” or “expedite” tax benefits
- Preparers who refuse to explain calculations or sign returns
For more information on the new tax law, visit One, Big, Beautiful Bill Provisions on IRS.gov.
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IRS Business Tax Account expands user access
Business Tax Account is now available partnerships, federal, state, and local governments, Tribal governments, and tax-exempt organizations.
More businesses can now access IRS Business Tax Account. This secure online tool allows eligible users to manage their company’s federal tax responsibilities.
- Through BTA, users and designated officials can: View tax balances, make payments, and see payment history
- Download select digital notices
- View eligible transcripts, such as payroll and income
- Request a tax compliance check
- See the business name and address on file with the IRS
For more information or to set up an account visit the Business Tax Account page on IRS.gov.
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Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
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