New IRS Reporting Changes Expats Should Watch in 2025

The IRS has introduced several updates for the 2025 tax year, and U.S. expats should take note. From revised thresholds to stricter compliance efforts, here’s what’s new:

Key Changes to Know

• Increased FEIE Limit: For tax year 2024 (filed in 2025), the Foreign Earned Income Exclusion has been adjusted to $126,500.
• Enhanced Enforcement of BOIR (Beneficial Ownership Information Report): Business owners must now file this report by January 1, 2025, under the Corporate Transparency Act.
• Digital Currency Reporting: If you own or trade crypto abroad, reporting requirements are more stringent than ever. Ensure you disclose all relevant holdings.

Take Action

These updates highlight the importance of working with a tax professional who understands expat tax law. Don’t risk penalties for non-compliance—prepare early.