Fall 2025 IRS Updates & Tax Relief Tips for Texans

Taxpayers and small businesses need to stay current on IRS changes ahead of upcoming deadlines. Recent IRS announcements and new laws will affect refunds, deductions, and scams this fall. For example, the IRS is phasing out paper refund checks – starting Sept. 30, 2025 all individual refunds must go electronically. Likewise, watch out for fraudulent tax schemes on social media: the IRS has warned that scammers are pushing bogus credits (like fake fuel or paid family leave credits) that have already triggered thousands of false claims and over $162 million in penalties. Keeping your filings accurate and up-to-date is crucial.

IRS Going Digital: Phase-Out of Paper Refund Checks

The IRS announced that, by law, paper refund checks for individuals will end on Sept. 30, 2025. This “going digital” initiative is intended to protect taxpayers (paper checks are far more likely to be lost or stolen), speed up refunds, and cut costs. In 2025 the IRS delivered over 93% of refunds by direct deposit, versus only 7% by mail. Action item: make sure your bank account information is current with the IRS. If you don’t have a bank account, consider opening one or using options like prepaid debit cards or digital wallets, as suggested by the IRS. Keeping this info updated means your refund will hit your account (often within 21 days of e-filing) instead of waiting weeks for a mailed check.

Beware Tax Scams on Social Media

Scammers increasingly use social posts to pitch “too good to be true” tax deals. The IRS specifically flagged schemes offering bogus credits that “everyone qualifies for,” such as false fuel tax or family leave. Often these promotions promise easy refunds or urge you to file amended returns without proper docs. In reality, thousands of taxpayers have fallen for these schemes, resulting in more than 32,000 frivolous-return penalties (totalling over $162 million) levied by the IRS. Key warning signs include:

• Universal refund claims: Social media posts that insist everyone is entitled to a big tax credit or refund.

• “Quick fix” tactics: Advice to file amended returns for credits you never earned, or to ignore IRS letters.

• Minimal documentation: Promises of “easy refunds with no paperwork.”

If you spot these red flags, don’t follow the advice. Submitting false claims can delay or deny your refund and incur a $5,000 penalty per bogus. If you’ve already filed an incorrect return, amend it immediately (Form 1040-X) and respond to any IRS. When in doubt, double-check IRS.gov or consult a qualified tax advisor instead of relying on online.

One Big Beautiful Bill: New Tax Breaks for Workers

A major new law (the One Big Beautiful Bill, effective 2025–2028) adds generous deductions for everyday workers. For example, servers, bartenders and others in tipping jobs can now deduct up to $25,000 of cash tips received in 2025, meaning those tips won’t count as taxable income. The deduction is available whether you itemize or use the standard deduction, and it phases out for higher earners (above $150K for singles). Similarly, overtime pay is now tax-deductible to a limit: you can deduct the “half” portion of FLSA overtime pay (capped at $12,500 per person, $25,000 married. Both breaks are in effect for 2025-28 and require employers to report tips or overtime on W-2s.

Another important change: the federal cap on state and local tax deductions (SALT) has jumped to $40,000 for most filers. Texas has no state income tax, but many Texans pay high property taxes; raising the SALT cap means homeowners paying lots of local taxes can deduct more on their federal return. These provisions are new and have specific rules, so review IRS guidance or get professional advice when you file next year.

Disaster Relief in Texas & Extended Deadlines

September is prime hurricane/wildfire season, and the IRS reminds everyone to be ready. For Texas residents, recent storms brought tax relief: the IRS extended many filing and payment deadlines for affected areas. For example, counties hit by July 2025 storms now have until Feb. 2, 2026 to file returns and pay taxes that were originally due this. (Similarly, relief was granted in June 2025 for South Texas storm victims, pushing deadlines to Nov. 3, 2025.) Relief is automatically applied based on your address of record, but if you live outside the disaster area or are a relief worker, you can call IRS disaster hotline 866-562-5227 to request the same extensions.

While weather (or other disasters) might force you to adjust priorities, don’t lose your tax records. The IRS recommends safeguarding vital documents – keep tax returns, IDs, insurance info and property titles in waterproof/fireproof containers, and make digital backups. Maintain an inventory (photos/videos) of your possessions, which will help with insurance and tax claims if you must file casualty loss deductions. Remember, if a disaster strikes, IRS deadlines are usually extended automatically and uninsured losses can often be deducted on your return.

Key Fall 2025 Tax Deadlines

Even without disasters, regular IRS deadlines matter. Mark your calendar: third-quarter estimated tax payments (for calendar-year filers) are due Sept. 15, 2025, and Form 941 payroll tax returns for Q3 are due Oct. 31, 2025. Texas businesses should also watch for state franchise tax notices (even though state filings are different, IRS collections still apply federally). If you get a tax notice or cannot pay on time, take action immediately – applying for an IRS installment agreement or requesting a short extension is better than ignoring it. And remember, as shown above, many deadlines may have been pushed out for disaster victims, so check IRS.gov or news releases to see if your county was granted relief