IRS Makes Tax Filing Easier for Big Businesses With 2025 PFA Update

On June 17, 2025, the IRS made a big change to help large and international businesses. It improved a program called the Pre-Filing Agreement (PFA).

This update helps companies get answers about tax rules before they file their tax return. That means fewer mistakes, fewer audits, and more confidence at tax time.

In this article, you’ll learn:

• What the PFA program is
• Who it helps
• What changed
• Why this matters in 2025
• What steps businesses should take next

Let’s break it down—step by step.

What Is the Pre-Filing Agreement (PFA) Program?

The Pre-Filing Agreement program is a tool the IRS offers to big companies, especially those that work in more than one country. It lets them ask the IRS a tax question before they file their return.

This gives the company a chance to:

• Make sure their taxes are correct
• Avoid penalties
• Save time and money
• Avoid IRS audits later

Think of it like getting help before turning in your homework. If something’s wrong, you can fix it in advance.

Who Is the PFA Program For?

This program is not for individuals or small businesses. It’s designed for:

• Large companies
• Multinational businesses (those that operate in more than one country)
• Corporations with complex tax issues

If your business has confusing tax questions or needs help with international tax laws, the PFA program is made for you.

What Changed in June 2025?

The IRS made the PFA program easier to use and more helpful. Here’s what’s new:

1. A Clearer Website

There is now a special landing page on the IRS website. It explains what the program is, who can use it, and how to apply.

2. Step-by-Step Guide

The IRS created a how-to guide so businesses know exactly what steps to follow.

3. List of Tax Topics You Can Ask About

Not all tax questions are allowed in a PFA request. Now, the IRS gives a list of approved topics so companies know what they can ask ahead of time.

4. Better Timing Advice

The IRS now shares clear information about when to apply. For example, businesses should send their request well before their tax filing due date.

These updates make the whole process faster, easier, and more reliable.

Why the PFA Program Matters in 2025

Taxes are changing. In 2025, many companies face new rules—from tax breaks to international reporting requirements.

When businesses file taxes without clear guidance, they risk:

• Making costly errors
• Triggering IRS audits
• Paying fines or interest

But if they use the PFA program, they get:

• IRS feedback early
• Time to make corrections
• Less worry at tax time

It’s like finding the answers before the test. And in business, that can mean saving millions of dollars.

Real-Life Example

Let’s say a U.S.-based company sells software around the world. They have offices in the U.S., Canada, and Europe. Each country has different tax rules. The company isn’t sure how to report income from those countries.

Instead of guessing, they apply for a Pre-Filing Agreement. They ask the IRS how to handle this kind of income.

The IRS reviews the question and gives an answer before the company files. Now the business knows what to do—and won’t worry about an audit later.

What Should Businesses Do Now?

If you run a large or international business, here’s how you can benefit from this program:

1. Talk to Your Tax Advisor

Ask if your company has any tricky tax situations that could be reviewed by the IRS ahead of time.

2. Visit the New IRS PFA Page

The updated website includes everything you need—guides, deadlines, and forms.

3. Apply Early

The sooner you apply, the more time you have to fix problems before the tax deadline.

4. Use It Year After Year

If your business deals with complex taxes every year, make the PFA program part of your regular planning.

Key Benefits of the New PFA Program

1. Early IRS guidance - Avoids surprises and costly mistakes.

2. Less risk of audit - Peace of mind when filing
3. Saves time and money - No need to fix returns later
4. Works for global companies - Handles cross-border tax questions
5. Supports tax planning - Helps with long-term strategies

Quick Recap

• The PFA program helps big businesses ask the IRS tax questions before filing.
• The IRS updated the program on June 17, 2025, to make it easier to use.
• Changes include a new website, better instructions, and a list of allowed questions.
• Using the PFA program helps companies avoid errors and audits.
• Businesses should talk to their tax advisors and apply early.