Navigating the Top Trending Tax Topics in 2025

As we move through 2025, the tax landscape is rapidly evolving, driven by both domestic policy changes and global reform efforts. Staying ahead of these developments is key to minimizing tax liabilities and staying compliant. Below are some of the most important trending tax topics that individuals and businesses should be aware of as we head into the next filing season.

I. Policy Shifts and Pending Reforms

One of the most significant tax issues on the horizon is the scheduled expiration of several provisions from the 2017 Tax Cuts and Jobs Act (TCJA). These include lower individual tax rates, higher standard deductions, and an expanded estate tax exemption. If Congress doesn’t act, many taxpayers may face higher taxes beginning in 2026. Wealth transfer planning, especially for high-net-worth individuals, should be revisited now while the higher estate exemption remains in place.

Meanwhile, global tax reform is making waves through the OECD/G20 Inclusive Framework’s two-pillar solution. Pillar Two, which establishes a 15% global minimum corporate tax, has already been enacted in various jurisdictions. Multinational businesses are now grappling with compliance and reporting burdens under these new international tax rules.

Whether you're based in Green Bay or operate across borders, now is the time to strategize your tax prep to accommodate possible changes.

II. Specific Considerations for Individuals

The rise of remote work has created complex tax questions around state residency, income sourcing, and even international double taxation. Employees and employers alike should familiarize themselves with tax treaties, state-specific rules, and foreign tax credit eligibility to avoid unpleasant surprises.

For gig workers and independent contractors, tax compliance continues to be a pain point. Proper classification, expense tracking, and Form 1099 reporting remain essential. If you're a freelancer or use gig workers in your business, getting ahead of these issues can save significant time and stress during filing season.

The IRS also continues to increase its scrutiny of cryptocurrency and digital asset transactions. A new form, Form 1099-DA, is expected to be introduced in 2025 to streamline digital asset reporting. Anyone trading or holding crypto should stay current with their obligations to avoid audits or penalties.

Even inflation plays a role in tax planning—bracket creep may push taxpayers into higher marginal tax rates, reducing the real value of exemptions and deductions. Strategies like maxing out pre-tax retirement contributions or exploring Roth IRA conversions can help manage this burden for individuals in De Pere and beyond.

III. Business Tax Trends and Planning Opportunities

For business owners, several key tax developments should be on the radar. One of the most important is the Pass-Through Entity (PTE) tax election, available in many states. This election allows certain businesses to reduce the impact of the federal SALT deduction cap by paying state taxes at the entity level. However, rules vary by state, so it's important to understand the specific regulations applicable to your jurisdiction.

On the investment side, the “One Big Beautiful Bill Act” made headlines by restoring 100% bonus depreciation and allowing immediate expensing of domestic R&D costs for tax years beginning after 2024. This can have a significant impact on business tax prep and capital planning decisions.

Additionally, businesses will soon be subject to Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act. Beginning in 2025, most existing companies must disclose ownership details to FinCEN, and failure to comply may result in penalties.

Local businesses in areas like Green Bay and De Pere must also remain vigilant about nexus rules. Remote workers can unknowingly establish tax presence in new states, triggering unexpected filing obligations and complicating tax prep.

IV. Moving Forward Proactively

With energy tax credits shifting again due to changes in the Inflation Reduction Act and the “One Big Beautiful Bill Act,” businesses should carefully evaluate how these incentives align with their long-term sustainability strategies. Certain incentives remain, but new restrictions—especially regarding foreign entities of concern—may limit eligibility.

The tax environment in 2025 is dynamic, and staying informed is more important than ever. Whether you’re an individual with complex holdings or a growing business navigating multi-state operations, a proactive tax strategy is critical.

At Millhouse Accounting, we specialize in helping clients in Green Bay, De Pere, and beyond understand their options and implement sound tax prep strategies. Let’s make sure you’re ready for what’s next—get in touch today to schedule a consultation.