By Jessica I. Marschall, CPA, ISA AM
November 12th, 2025
1. A Strained IRS May Affect Your Filing Experience
Recent analysis at Marschall Tax underscores a deepening operational crisis within the IRS: workforce reductions, technology backlogs, and funding shortfalls have created a “perfect storm” of risk for both business and individual filers.
IRS Workforce Furloughs and Government Shutdown
The IRS has furloughed nearly half its workforce as the government shutdown entered its second week, the agency said in an updated contingency plan released on October 8, 2025. The agency placed more than 34,400 of its 74,300 employees on furlough, representing approximately 46% of its workforce. Initially, the IRS said that its entire workforce would remain on the job thanks to funding from the 2022 Inflation Reduction Act. However, after the first five business days, the agency was forced to implement widespread furloughs.
Most IRS operations have been closed during the shutdown, which began October 1, 2025, and continues into its second week. Approximately 39,870 employees (53.6% of the workforce) will remain on the job, with virtually all of them compensated by “a resource other than annual appropriations,” according to the agency’s updated contingency plan.
The furloughs came as the federal government shutdown dragged on with dueling funding resolutions failing to pass in Senate votes. The agency indicated that Taxpayer Services will keep 24,470 staffers, including about 3,500 new customer service representatives who began onboarding on September 22 and will continue through November 3.
Workforce Reductions and Reduction-in-Force Notices
Adding to the operational strain, reduction-in-force (RIF) notices were sent to more than 1,400 Treasury Department employees, many of whom work at the IRS, on October 10, 2025. The National Treasury Employees Union confirmed that it has received notification from several members that these RIF notices have been issued 10 days into the government shutdown.
The agency started 2025 with approximately 100,000 workers but has seen its workforce reduced to about 75,000, representing a 25% reduction. The IRS workforce shrank from approximately 103,000 to 77,000 between January and May 2025. These reductions severely impair the IRS’s ability to process returns, respond to taxpayer inquiries, and deploy system updates.
Impacts on Taxpayer Services
The National Treasury Employees Union warned that taxpayers should “expect increased wait times, backlogs, and delays implementing tax law changes as the shutdown continues.” In its letter to Treasury Secretary Scott Bessent, the American Institute of CPAs (AICPA) recommended that the IRS implement “fair, reasonable, and practical relief measures to mitigate the negative impact of the shutdown on taxpayers and their practitioners.”
The shutdown impacts taxpayers as the October 15 tax filing extension deadline approaches and as the IRS prepares for the upcoming tax season. The AICPA previously urged the IRS to keep all employees on the job during the shutdown, regardless of its length, because of October 15 tax deadlines and guidance needed for the new tax law.
Implications for Taxpayers
Given these circumstances, taxpayers should:
- Expect longer hold times for assistance, slower processing of forms, and extended response times to notices and audits.
- Be extra diligent with documentation, compliance, and completeness. Errors now can lead to delays or unresolved audits.
- Proactively coordinate with your tax advisor for businesses with extension filings or complex returns to ensure all election and reporting deadlines are met ahead of any IRS backlog.
- Prepare for limited services during the shutdown period and potential delays in refunds, correspondence, and audit responses.
2. Big Business Tax Provisions to Monitor (and Use) in 2025
While many business-related credits and deductions remain in effect for tax year 2025, key provisions are scheduled to sunset or face revision. Planning now is critical.
a) Residential Clean Energy Credit (IRC Section 25D) and Energy Efficient Home Improvement Credit (IRC Section 25C)
Though often associated with personal taxpayers, these credits can also impact business owners with mixed-use properties or equity-owner residences.
Residential Clean Energy Credit (Section 25D)
The IRS confirms the Residential Clean Energy Credit remains at 30% of qualifying property costs through 2025. However, the “One Big Beautiful Bill Act” (OBBBA, H.R. 1, Public Law 119-21), signed into law on July 4, 2025, accelerates the sunset of this climate-related incentive. Section 25D now terminates for any expenditures made after December 31, 2025, significantly shortening the window that had previously extended through 2034 under the Inflation Reduction Act.
This credit provides a 30% tax credit for installing qualifying clean energy property, including:
- Solar electric property
- Solar water heating property
- Small wind energy property
- Geothermal heat pump property
- Fuel cell property
- Qualified battery storage technology property
The credit is calculated as 30% of the total cost of eligible improvements. For example, a $25,000 solar installation results in approximately $7,500 in tax savings for homeowners, but only if completed by December 31, 2025.
Energy Efficient Home Improvement Credit (Section 25C)
Similarly, Section 25C, which offers 30% back on qualifying energy-efficient improvements with a maximum annual credit of $1,200 (or $2,000 for certain heat pumps and biomass equipment), was originally scheduled to run through 2032. Under the OBBBA, this credit now expires on December 31, 2025, for any property placed in service after that date.
Qualifying improvements include:
- Exterior windows and skylights (up to $600 annual limit)
- Exterior doors (up to $250 per door, $500 total annual limit)
- Insulation and air sealing materials
- Central air conditioners and heat pumps (up to $2,000 annual limit)
- Natural gas, propane, or oil water heaters (up to $2,000 annual limit)
- Biomass stoves and biomass boilers (up to $2,000 annual limit)
- Home energy audits (up to $150 annual limit)
Critical Timing Requirements
For both credits, there are important questions around purchase date versus installation date. We currently recommend ensuring all items are in service or place by December 31, 2025. The IRS has issued FAQs (FS-2025-05, dated August 21, 2025) providing initial guidance on modifications to these energy-related tax provisions under OBBBA.
For Section 25C, in 2025, for each item of qualifying property placed in service, no credit will be allowed unless the item was produced by a qualified manufacturer and the taxpayer reports the Qualified Manufacturer Identification Number (QMID) on their tax return.
Action Items
If you or your business plan to install solar, geothermal heat pumps, battery storage, wind turbines, or other qualified clean-energy equipment:
- Aim for completion and payment by year-end 2025. To qualify for the 30% tax credit, homeowners must have their systems operational by December 31, 2025. This includes time for planning, permitting, and installation. Industry experts recommend that homeowners begin the process early (90 to 120 days in advance) to avoid potential delays as the deadline approaches.
- Document clearly if you manage rental property or mixed-use real estate. Ensure classification and allocation between business and personal use are clearly documented to avoid pitfalls.
- Maintain proper documentation including Form 5695 (Residential Clean Energy Credits), proof of installation, service date, cost, and eligibility. Keep the vehicle identification number (VIN) or product identification number (PIN) for qualifying equipment.
- Register with qualified manufacturers to obtain necessary QMIDs for Section 25C properties.
b) Passenger Vehicle Loan Interest Deduction and Reporting (H.R. 1, Section 70203 and Section 6050AA)
The OBBBA introduces a new temporary tax deduction for passenger vehicle loan interest and establishes new reporting obligations under Section 6050AA of the Internal Revenue Code.
The Vehicle Loan Interest Deduction
Effective for tax years beginning after December 31, 2024, and before January 1, 2029, interest paid on a qualifying car loan will be deductible. This is an “above-the-line” deduction, meaning taxpayers can take it even if they are taking the standard deduction and not itemizing.
Eligible taxpayers can deduct up to $10,000 of interest paid annually on qualifying new auto loans. The deduction applies to “qualified passenger vehicle loan interest,” which means interest paid or accrued during the taxable year by the taxpayer after December 31, 2024, for the purchase of an “applicable passenger vehicle” for personal use that is secured by a first lien on that vehicle.
Qualifying Vehicle Requirements
To qualify for the deduction, the vehicle must meet the following criteria:
- New vehicle only (not used), with original use starting with the taxpayer
- Manufactured primarily for use on public streets, roads, and highways (not including vehicles operated exclusively on rails)
- At least two wheels (such as cars, minivans, sport utility vehicles, pickup trucks, or motorcycles)
- Gross vehicle weight rating of less than 14,000 pounds
- Final assembly occurred within the United States
- Purchased for personal use (not business or commercial use)
- Loan incurred after December 31, 2024
- Not owed to a related party
Income Phase-Out Thresholds
The deduction begins to phase out at $100,000 modified adjusted gross income (MAGI) for single filers and $200,000 for married filing jointly. The deduction is fully phased out at $150,000 MAGI for single filers and $250,000 for married filing jointly.
If income falls within the phase-out range, the deduction is reduced by $200 for every $1,000 that MAGI exceeds the lower threshold. For example, a single filer with MAGI of $110,000 would have their maximum deduction reduced by $2,000 (from $10,000 to $8,000).
New Reporting Requirements Under Section 6050AA
The OBBBA adds Section 6050AA to the Internal Revenue Code, adopting new information reporting requirements for businesses receiving interest on car loans from individuals. This requirement is similar to those under Section 6050H for businesses receiving payments of mortgage interest.
Businesses that receive from any individual interest of $600 or more for any calendar year on a qualified passenger vehicle loan must:
- File an information return with the IRS (on a form to be developed, likely in the 1098 series)
- Provide a written statement to the borrower by January 31 following the calendar year
The information return must contain:
- The name and address of the individual from whom the interest was received
- The amount of interest received for the applicable calendar year
- The amount of outstanding principal on the specified passenger vehicle loan as of the beginning of the calendar year
- The year, make, model, and vehicle identification number (VIN) of the applicable passenger vehicle that secures the loan
- Any other information that the Secretary of the Treasury may prescribe
IRS Transition Relief for 2025
On October 22, 2025, the IRS issued Notice 2025-57 providing transitional guidance for the implementation of Section 6050AA reporting requirements. Recognizing that lenders need additional time to make necessary system changes and that the OBBBA was enacted mid-year (July 4, 2025), the IRS is providing relief for calendar year 2025.
For 2025 only, recipients of interest on a specified passenger vehicle loan may satisfy their reporting obligations under Section 6050AA by simply making a statement available to the individual indicating the total amount of interest received in calendar year 2025 on the specified passenger vehicle loan. This statement must be made available to the individual on or before January 31, 2026.
Acceptable methods for making this statement available include:
- An easily accessible online account portal
- A regular monthly statement
- An annual statement provided to the individual
- Other similar means designed to provide accurate information
Additionally, the IRS will not impose penalties under Sections 6721 and 6722 on lenders for failing to file information returns and provide payee statements if they satisfy their reporting obligations under Section 6050AA for calendar year 2025 as described in the guidance.
Business vs. Personal Use Considerations
If a vehicle is used partly for business and partly for personal use, the business portion of interest may already be deductible under existing rules for business expenses. When claiming the new OBBBA deduction, taxpayers must account for their business use percentage and reduce the OBBBA car loan interest deduction by the amount already applied to business expense deductions.
The new OBBBA deduction is separate from business-use deductions and applies only to the personal-use portion of vehicle loan interest.
Key Considerations for Businesses and Individuals
- For businesses purchasing or leasing qualifying vehicles in 2025, review eligibility including vehicle assembly rules, business use percentage, and model criteria.
- Monitor new reporting obligations under Section 6050AA, which require reporting of certain vehicle loan interest. Financial institutions should begin preparing systems to track interest and collect the required data.
- Document vehicle use percentages, business versus personal allocation, and ensure you meet any IRS-published transitional guidance.
- Maintain documentation including lender statements, purchasing and financing documents, and VIN information.
- Taxpayers must include the VIN on their tax return (on Schedule 1-A, Part IV, submitted along with Form 1040) for the year the interest is paid to confirm the vehicle meets the U.S. final assembly requirement.
c) Tip and Overtime Tax Deduction Issues and Emerging Reporting Obligations
According to the AICPA, the American Institute of CPAs is actively seeking IRS guidance on tip and overtime tax deduction issues for 2025. If your business has employees earning tipped income or overtime pay structures, this is a risk area requiring close attention.
While the OBBBA and related legislation have introduced various changes to the tax code, specific provisions regarding tip and overtime deductions remain under development. The AICPA has been advocating for clarity on these issues to help businesses and payroll administrators comply with evolving requirements.
Planning Points
- Review current payroll practices for tipped employees and overtime structures to ensure compliance with existing regulations.
- Coordinate with payroll and HR departments to ensure proper withholding, reporting, and deduction eligibility under current law.
- Stay alert for new IRS guidance or changes in regulations affecting these sectors. Given the operational strain on the IRS, guidance may be delayed or issued in phases.
- Document tip reporting procedures and maintain records of tip income reported by employees.
- Prepare for potential changes to overtime calculation and reporting requirements as new guidance emerges.
d) Electric Vehicle Credits and Alternative Fuel Infrastructure
The OBBBA significantly curtails clean vehicle incentives, with most credits terminating on September 30, 2025.
Terminated or Expiring EV Credits
- New Clean Vehicle Credit (Section 30D): Terminated for vehicles acquired after September 30, 2025. This credit previously offered up to $7,500 for new qualifying electric vehicles, subject to manufacturer’s suggested retail price (MSRP) caps and modified adjusted gross income limitations.
- Previously-Owned Clean Vehicle Credit (Section 25E): Terminated for vehicles acquired after September 30, 2025. This credit previously offered up to $4,000 for qualifying used electric vehicles.
- Qualified Commercial Clean Vehicle Credit (Section 45W): Terminated for vehicles acquired after September 30, 2025. Depending on vehicle weight, this credit offered up to $7,500 or $40,000 per vehicle.
- Alternative Fuel Vehicle Refueling Property Credit (Section 30C): Terminated for property placed in service after June 30, 2026. This credit covered charging infrastructure and associated electrical panel upgrades.
Action Items for Businesses and Individuals
- Accelerate fleet electrification plans if your business was planning to transition to electric vehicles. The September 30, 2025, deadline leaves little time for commercial fleet purchases.
- Review vehicle purchasing timelines for individuals considering electric vehicle purchases. The credit is only available for vehicles acquired by September 30, 2025.
- Plan charging infrastructure investments before June 30, 2026, if you intend to claim the Section 30C credit for refueling property.
- Ensure compliance with all eligibility requirements, including domestic content rules, MSRP caps, and income limitations.
e) Commercial Building Energy Efficiency Provisions
The Energy Efficient Commercial Buildings Deduction (Section 179D) allows business owners of qualified commercial buildings and designers of energy-efficient commercial building property to claim a deduction. Under the OBBBA, Section 179D will be eliminated for buildings where construction begins after June 30, 2026.
The deduction is the lesser of the cost of the installed property or the maximum savings per square foot of the building, subject to an additional square footage bonus if prevailing wage and apprenticeship requirements are met. In 2025, the deduction is capped at $5.81 per square foot.
Commercial property owners and developers need to evaluate their construction timelines carefully. Projects that miss the June 30, 2026, “beginning of construction” deadline will lose access to potentially substantial tax deductions. The “beginning of construction” standard has very specific parameters that should be analyzed in detail to ensure the requirement is met.
f) Residential Energy Efficient Home Credit (Section 45L)
Section 45L, the New Energy Efficient Home Credit, is repealed with respect to qualified homes acquired after June 30, 2026. This credit was available to eligible contractors constructing energy-efficient homes.
Homebuilders and contractors should evaluate their construction pipelines and ensure that qualifying homes are completed and acquired by homebuyers before this deadline to maximize available credits.
3. Why Timing and Accuracy Matter More Than Ever
Given the operational strain on the IRS, the cost of errors or delays has increased substantially. As referenced in our MarschallTax analysis:
“The IRS workforce shrank from approximately 103,000 to 77,000 between January and May 2025. These reductions impair the IRS’s ability to process returns, respond to taxpayer inquiries, and deploy system updates.”
With nearly half the IRS workforce furloughed during the government shutdown and significant reduction-in-force actions affecting the agency, taxpayers face an environment where mistakes are more costly and resolution times are dramatically extended.
In This Environment, Taxpayers Should
- Prioritize early filing (where feasible) and extension filings with full documentation. Filing early may help avoid processing backlogs and delays.
- Review all elections carefully (such as bonus depreciation, energy credits, vehicle interest deductions) before filing to ensure eligibility and proper documentation.
- Maintain a rigorous documentation trail including digital copies, dates placed in service, cost breakdowns, business-use allocation worksheets, VINs, PINs, and QMIDs.
- Expect longer processing times for refunds, correspondence, and audit responses. Plan cash flow accordingly.
- Document all communications with the IRS, including dates, times, employee identification numbers, and summaries of discussions.
- Retain professional tax advice for complex situations, including business returns, real estate transactions, energy credit claims, and multi-state operations.
4. Individual Client Planning Considerations for 2025
While much of the focus here is business-oriented, key individual tax issues also merit attention.
Clean Energy and Energy Efficiency Credits
For homeowners, ensure installations qualify and meet the service-in-place requirement by December 31, 2025. This is the final year for both the Residential Clean Energy Credit (Section 25D) and the Energy Efficient Home Improvement Credit (Section 25C).
Homeowners should begin the process early (90 to 120 days in advance) to ensure installations are completed on time. Supply chain delays, permitting requirements, and contractor availability may affect project timelines.
Electric Vehicle Purchase Timing
Many EV credits expired on September 30, 2025. Individuals who were considering electric vehicle purchases should be aware that federal tax incentives are no longer available for vehicles acquired after this date.
However, some state and local incentives may remain available. Taxpayers should check with their state tax authorities and local utility companies for potential rebates or credits.
Passenger Vehicle Loan Interest Deduction
For individuals financing new vehicle purchases in 2025 through 2028, the new passenger vehicle loan interest deduction offers up to $10,000 in annual deductions for qualifying loans. This can provide substantial tax savings for middle-income taxpayers purchasing U.S.-assembled vehicles.
Ensure the vehicle meets all eligibility requirements, including:
- New vehicle (not used)
- Final assembly in the United States
- Gross vehicle weight rating below 14,000 pounds
- Purchased for personal use
- Loan incurred after December 31, 2024
Maintain documentation including the VIN, lender statements showing interest paid, and proof of final assembly location.
Complex Returns and Audit Risk
Given IRS delays, clients with complex returns, large itemized deductions, or audit risk should consider filing earlier and retaining documentation accordingly. Complex situations that may warrant early filing include:
- Significant capital gains or losses
- Rental property income and expenses
- Business income reported on Schedule C
- Foreign income and foreign tax credits
- Large charitable contributions
- Casualty or theft losses
- Multiple state tax filings
Stay Alert for New Guidance
Remain alert for new guidance on passenger vehicle interest, tip and overtime rules, energy credit changes, and other reporting modifications. The IRS has indicated that additional guidance will be forthcoming on various OBBBA provisions, but the timing of such guidance may be affected by the agency’s operational constraints.
5. Year-End Planning Checklist
To stay ahead of tax obligations and maximize available credits and deductions, we recommend the following timeline for year-end 2025:
By November 2025
- Inventory potential clean-energy projects including solar, geothermal, wind, and energy-efficient home improvements. Determine whether projects can be completed by December 31, 2025.
- Review vehicle acquisition plans. If considering a new vehicle purchase for which you’ll finance with a loan, evaluate whether it meets the passenger vehicle loan interest deduction requirements.
- Assess electric vehicle and charging infrastructure needs. For EV purchases, note that credits expired September 30, 2025. For charging infrastructure, the deadline is June 30, 2026.
- Plan large business purchases including equipment acquisitions that may qualify for bonus depreciation.
- Conduct inventory cleanup to optimize cost of goods sold and taxable income.
- Review payroll practices for tipped employees and overtime structures.
By December 31, 2025
- Ensure qualified property is placed in service (not just ordered) if claiming Section 25C or 25D credits. “Placed in service” generally means the property is ready and available for its specific use.
- Complete clean energy installations including solar panels, geothermal systems, battery storage, and energy-efficient home improvements.
- Finalize vehicle purchases if seeking to claim the passenger vehicle loan interest deduction for 2025 interest payments.
- Make year-end estimated tax payments to avoid underpayment penalties.
- Execute any required entity elections or other time-sensitive filings.
- Maximize retirement plan contributions including 401(k), IRA, and SEP contributions (some with extended deadlines into 2026).
December 2025 through Early January 2026
- Gather documentation for any vehicle usage and business allocation worksheets.
- Compile home upgrade improvement records including contractor invoices, proof of payment, product certifications, and QMIDs.
- Document business use percentages for vehicles, home offices, and mixed-use properties.
- Organize receipts and statements for all tax-relevant transactions.
- Obtain year-end statements from lenders showing vehicle loan interest paid.
January 2026
- Request early discussions with your tax advisor to schedule returns, plan extensions, and review election decisions (such as entity elections, bonus depreciation, and credit optimization).
- Begin tax return preparation as soon as W-2s, 1099s, and other information returns are available.
- Review the transition relief provisions for vehicle loan interest reporting to ensure you have the necessary statements from lenders.
- File business returns or extensions as appropriate to optimize tax planning and avoid penalties.
Throughout the Year
- Keep digital and physical copies of all supporting documentation including costs, service dates, installation reports, business-use percentages, VINs, PINs, QMIDs, and lender statements.
- Maintain organized records with clear labeling and accessibility for quick reference during tax preparation or in the event of an audit.
- Document contemporaneously any significant tax-relevant decisions or transactions, including the business purpose and allocation methodologies used.
- Stay informed about IRS guidance updates and new regulatory developments that may affect your tax obligations.
- Communicate regularly with your tax advisor about significant life events, business changes, or transactions that may have tax implications.
6. Additional Tax Provisions and Considerations
Bonus Depreciation Restoration
The OBBBA permanently reinstates 100% bonus depreciation to fully deduct the cost of qualified property acquired beginning January 20, 2025. Additionally, the OBBBA expands the scope of “qualified assets” to cover manufacturing buildings beginning January 20, 2025.
This represents a significant benefit for businesses making capital investments in equipment and qualifying structures. Property owners should strategically plan the timing of capital expenditures, prioritize investments that qualify for larger or faster deductions, and maximize tax savings through immediate or front-loaded deductions.
Clean Electricity Production and Investment Credits
Time is now running out for the Clean Electricity Production Credit (Section 45Y) and the Clean Electricity Investment Credit (Section 48E). This is a major change affecting construction companies, real estate firms, property owners, designers, and energy-focused businesses.
Wind and solar projects that began or will begin construction by July 4, 2026, do not face a placed-in-service deadline for Investment Tax Credit (ITC) or Production Tax Credit (PTC) eligibility. However, projects must be placed in service by December 31, 2027, to qualify.
Wind and solar projects face some of the most dramatic changes under the OBBBA. Sections 45Y and 48E will be eliminated for facilities placed in service after December 31, 2027, unless construction begins on or before July 4, 2026. Projects that begin construction after July 4, 2026, face an even tighter deadline: they must be placed in service by the end of 2027.
Foreign Entity of Concern Restrictions
The OBBBA introduces new restrictions on the involvement of certain foreign entities in energy projects. These rules affect eligibility for several major tax credits and require businesses to reassess supply chains, ownership structures, and contractual relationships.
Projects with “prohibited foreign entity” (PFE) involvement may be ineligible for credits. The OBBBA also prohibits certain projects from receiving “material assistance” from a PFE using the “material assistance cost ratio” (MACR). The Department of the Treasury is required to release safe harbor MACR tables no later than December 31, 2026.
Taxpayers may exclude certain binding written contracts entered into prior to June 16, 2025, if construction of such facilities begins before August 1, 2025.
Domestic Content Requirements
The OBBBA modified domestic content requirements for Section 48E credits. Under the Inflation Reduction Act, taxpayers needed to use 100% U.S. iron or steel for certain structural components, and 40% of all other manufactured products needed to be of U.S. origin (20% for offshore wind facilities).
The OBBBA modified the requirement such that facilities beginning construction after June 16, 2025, but before 2026, must meet a 45% threshold (or 27.5% for offshore wind facilities), increasing up to 55% for construction beginning after 2026.
Advanced Nuclear Facility Benefits
In a notable expansion of the Section 45Y production credit, the definition of an “energy community” is broadened for advanced nuclear facilities. A metropolitan statistical area (MSA) qualifies as an energy community if it has, or had after 2009, at least 0.17% direct employment related to the advancement of nuclear power. This includes jobs in nuclear facility operations, advanced nuclear power research and development, and nuclear fuel cycle research and development.
Additionally, the law introduces a new 10% bonus credit under Section 45Y for advanced nuclear facilities located in qualifying MSAs. Advanced nuclear facilities also receive preferential treatment under Section 48E, with a new investment credit for qualified fuel cell property.
7. Why MAS LLC Is Positioned to Guide You
At MAS LLC, we combine over two decades of CPA-level accounting and tax experience with detailed advisory capabilities tailored to small and mid-sized businesses and individuals.
As tax legislation and reporting obligations continue to evolve amid an under-resourced IRS environment, our team helps you:
- Anticipate change by monitoring legislative developments, IRS guidance, and regulatory updates.
- Document carefully with robust systems for maintaining tax-relevant records and supporting documentation.
- Execute with confidence through strategic tax planning, compliance management, and proactive advisory services.
Our expertise spans:
- Individual and business tax preparation and planning
- Entity selection and restructuring
- Multi-state tax compliance
- Energy credit optimization and documentation
- Vehicle loan interest deduction planning
- Audit defense and representation
- Strategic tax planning for complex situations
- Year-end tax planning and cash flow optimization
We stay current with rapidly changing tax law, understand the operational challenges facing the IRS, and provide practical guidance to help you navigate this complex environment successfully.
In Summary
Tax season 2025 will not be business as usual. With the IRS facing significant operational strain (including workforce reductions, furloughs, and government shutdown impacts), important tax credits set to sunset (including residential clean energy credits and energy-efficient home improvement credits), and new reporting obligations taking effect (such as passenger vehicle loan interest reporting under Section 6050AA), proactive planning and documentation have become imperative.
Whether you are a business owner or an individual taxpayer, you will benefit from:
- Early engagement with your tax advisor to identify planning opportunities and compliance obligations.
- A disciplined year-end checklist that ensures you capture expiring credits and deductions before they sunset.
- A strategic approach to filing that accounts for IRS processing delays and limited service availability.
- Comprehensive documentation that supports all tax positions and withstands potential audit scrutiny.
The convergence of legislative changes (particularly those introduced by the OBBBA), IRS operational challenges, and accelerated sunset provisions creates both risks and opportunities for taxpayers. Those who plan proactively and document thoroughly will be best positioned to optimize their tax outcomes and navigate an uncertain environment.
For tailored guidance, election review, year-end planning assistance, or questions about how these changes affect your specific situation, our team at MarschallTax stands ready to support you.
About the Author
Jessica I. Marschall, CPA, is the founder of MAS LLC, a boutique tax and accounting firm serving businesses and individuals throughout the United States. With over 26 years of experience in tax planning, compliance, and advisory services, Jessica helps clients navigate complex tax challenges and optimize their tax positions. For more information, visit MarschallTax.com.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. Tax laws are complex and subject to change. Readers should consult with qualified tax professionals regarding their specific situations. The information presented is current as of November 2, 2025, but may be affected by subsequent legislative, regulatory, or administrative developments.
