The 2025 tax filing season has come to a close. However, there are some significant changes on the horizon that could impact the mortgage and financial services industries. This post will highlight the key takeaways for mortgage lenders this tax season. For more of an in-depth review, please download the Tax Briefing below.
A Quiet Filing Season, but Big Changes Ahead
This year’s filing season was pretty uneventful, with no major tax law or regulatory changes from Congress or the IRS. However, there’s a lot of groundwork being laid for substantial tax legislation later this year. Especially around making the Tax Cuts and Jobs Act permanent. Expect this to be funded by broad budget cuts. These include reductions at the IRS, which is already seeing workforce impacts and leadership turnover.
IRS Digital Asset Reporting Rule Overturned
Congress and the President have rolled back a Treasury rule. This rule would have expanded digital asset reporting requirements for brokers and certain DeFi participants. While this reduces compliance burdens for now, it leaves open questions about future digital asset tax reporting and enforcement.
Beneficial Ownership Information (BOI) Rules Pulled Back
The Treasury has stopped enforcing BOI regulations for U.S. citizens and domestic companies, narrowing the focus to foreign entities only. This move follows ongoing legal challenges and signals a more targeted approach to anti-money laundering compliance.
Obsolete IRS Guidance Cleared Out
As part of a government efficiency push, the IRS has declared several outdated guidance documents obsolete. They plan to repeal hundreds more. This should streamline compliance, but practitioners will need to stay alert for further changes.
Direct File Program Likely Ending
The IRS’s Direct File program, which allowed taxpayers in 25 states to file directly through the IRS website, appears to be on the chopping block. While popular with some, questions about cost and authority have put its future in doubt, especially as Congress scrutinizes IRS spending.
Summary
While the 2025 filing season may feel like a lull, the stage is set for major tax policy shifts. Mortgage lenders, servicers, and financial professionals should prepare for evolving compliance requirements, especially in digital assets and beneficial ownership. Stay tuned—2025 could bring significant legislative and regulatory action that will require agile adaptation and proactive planning. For more of an in-depth review, please download the Tax Briefing below.
For more information or if you have any questions regarding your 2025 planning, please reach out to your Mortgage Banking Tax Expert at Richey May or contact us at info@richeymay.com.
