As we navigate through changes brought by the new administration in 2025, there are significant developments within the Internal Revenue Service (IRS) that will impact taxpayers and tax professionals. The IRS is aiming to streamline its operations while facing the challenge of reduced staffing levels. With proposed federal workforce reductions and shifts in technology modernization efforts, understanding how these developments will affect IRS operations is crucial for maintaining compliance and efficiency in tax practices.

In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Ron Wainwright, Tax Partner, and Kasey Pittman, Tax Managing Director. Together, they delve into the announced changes to the IRS workforce, discuss potential impacts on taxpayers and explore the ongoing technological transformations within the agency.

Listen to learn more about:

• 02:02 – IRS workforce reductions
• 05:02 – Changes in IRS leadership
• 08:39 – IRS Priority Guidance Plan
• 12:33 – Technology modernization
• 17:19 – Impact on taxpayers
• 19:12 – Taxpayer assistance proposal
• 22:14 – Best practices with the IRS

Related Guidance

• Article: Tracking Tax Reform: The Reconciliation Process
• Article: Recent IRS Guidance for the Definition of Employee
• Article: IRS Issues Final Regulations Impacting Micro-Captive Insurance Arrangements
• Article: IRS Guidance for Theft Losses From Online Scams
• Webinar Recording: Clean Energy Incentives, Prevailing Wage & Apprenticeship: IRS Insights

Earlier this year, final regulations were issued under Prop. Reg. Section 1.6011-10, setting forth the criteria that classify certain micro-captive insurance arrangements as listed transactions or transactions of interest. These designations require extensive tax return disclosures and impact all parties, including related entities.

As micro-captives continue to be a focal point for Internal Revenue Service (IRS) enforcement, understanding these regulations is crucial for businesses aiming to maintain compliance and avoid potential penalties. Micro-captive insurance arrangements have long been a topic of concern for the IRS due to their potential for abuse in tax planning. The recent regulations aim to address these concerns by providing clear guidance on what constitutes a reportable transaction.

In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Rick Woods, Tax Partner. Together, they dive into the implications of these regulations, discuss IRS enforcement efforts and explore what constitutes a listed transaction versus a transaction of interest.

Listen to learn more about:

• 04:11 – IRS interest in micro-captives
• 06:01 – Section 831(b) in micro-captives
• 08:29 – IRS history with micro-captives
• 11:48 – Criteria for micro-captive transactions
• 17:13 – Reporting micro-captive transactions
• 19:49 – Exceptions in micro-captive coverage
• 21:24 – Exiting micro-captive arrangements
• 22:37 – Economic reasons for micro-captives
• 24:30 – Risk management in micro-captives

Related Guidance

• Article: IRS Issues Final Regulations Impacting Micro-Captive Insurance Arrangements

Navigating the complex terrain of financial statement reporting and income tax disclosures is a major challenge for companies as they face heightened regulatory scrutiny and evolving standards. The Financial Accounting Standards Board (FASB) continues to introduce significant updates, including ASU 2023-09, which requires greater transparency and more detailed reporting of tax provisions. These changes reshape how companies present their tax positions within financial statements, emphasizing the need for robust systems and strategies to manage increased disclosure requirements.

As organizations continue adapting to these standards in 2025, understanding tax provisions and their implications remains essential for maintaining compliance and demonstrating financial integrity.

In this episode, Brooks Nelson, Partner and Strategic Tax Leader and Sarah McGregor, Tax Director, are joined by William Billips, Tax Partner, and Lisa Macri, Tax Director. Together, they explore key tax legislation updates from 2024 and strategies for navigating the road ahead. This discussion is crucial for finance professionals seeking to build on last year’s adjustments and ensure their organizations remain prepared for the evolving landscape of tax reporting.

Listen to learn more about:

• 03:30 – Understanding ASC 740
• 04:25 – Common challenges with ASC 740
• 05:44 – Upcoming changes with ASU 2023-09
• 07:21 – Rate reconciliation and disaggregation requirements
• 08:33 – Preparing for ASU 2023-09 implementation
• 09:32 – Transferability of energy credits
• 10:45 – Acquisitions and dispositions key considerations
• 11:50 – Pass-through entities and tax reporting
• 14:20 – Anticipating future tax law changes
• 16:37 – Planning for legislative changes

Related Guidance

• Newsletter: The Rundown: Fourth Quarter 2024 Guide
• Article: Unlocking Opportunities: The Evolving Market for Clean Energy Tax Credits