Preparing for the 2024 Tax Season: What’s on the Horizon?

As we approach the 2024 tax season, the landscape continues to evolve, bringing fresh challenges and opportunities for tax professionals. From new digital asset reporting rules to inflation adjustments to the complex cannabis tax landscape, practitioners must remain adaptable and informed. Here’s a snapshot of what this issue offers as we head into the new year.

The Internal Revenue Service (IRS) recently issued final regulations on digital asset reporting, setting the stage for significant industry changes. Beginning in 2025, brokers will be required to file Form 1099-DA, covering the sale of digital assets, including stablecoins and non-fungible tokens (NFTs). To clarify what tax professionals need to know about digital assets, I’ve written an in-depth article on this topic.

We’ve also included our annual checklist to help professionals update their client organizers. Don’t forget to check the “Member Center” at NAEA.org for sample documents and letters, which can be tailored to suit your practice. If your practice is more “Flintstones” than “Jetsons,” make sure you read our article on building your practice through social media. If you didn’t recognize either of these references, you may be social media savvy, but everyone should accept the challenge to add a technology upgrade this year to his or her practice. While not all clients will notice the change, some will—and you may be pleasantly surprised by the new ones you attract as a result.

While inflation adjustments might not grab headlines, they do impact taxpayers facing rising costs. The IRS has released 2025 inflation adjustments, which include an increased standard deduction and slightly upward-shifted tax brackets. These changes could ease tax burdens for some clients and create planning opportunities—particularly for those on the cusp of different tax brackets. Now is a great time to revisit strategies like bunching deductions, charitable giving, and retirement contributions.

The 2024 tax season brings numerous changes that tax professionals need to stay on top of. Preparing your office and staff for the upcoming season may present challenges, but staying informed and organized will set you and your clients up for success in an increasingly complex tax environment. In this issue, we’ve included our “ICYMI” (In Case You Missed It) questions and answers from the NAEA WebBoard, and articles on topics ranging from decoding transcripts to Tax Court cases. As always, knowledge is power. We hope you find these topics helpful as well as our practice management tips to get you into “tax mode” for the new year.