IRS Zeroes In on Rental Income – Clear Start Tax Warns Landlords About 2025 Enforcement Surge

Clear Start Tax Alerts Landlords to Increased IRS Scrutiny of Rental Income, Short-Term Rentals, and 1099 Reporting Requirements

IRVINE, CA / ACCESS Newswire / July 25, 2025 / With IRS enforcement on the rise in 2025, rental income is now under the microscope – and many landlords may not even realize they’re at risk. According to Clear Start Tax, a nationally recognized tax resolution firm, the IRS is using new tools and funding to flag unreported rental income, misclassified deductions, and missing 1099s. From Airbnb hosts to multi-property investors, property owners are facing a surge in IRS notices and audits.

“Rental income used to fly under the radar, but not anymore,” said the Head of Client Solutions at Clear Start Tax. “If you’ve received rent payments through apps, failed to issue 1099s, or deducted personal expenses as rental costs, the IRS likely has a way to find it-and take action.”

Why Rental Income Is Now a Top IRS Target

With expanded digital reporting and increased third-party data sharing, the IRS now has unprecedented visibility into rental transactions. Platforms like Airbnb, Vrbo, and property management services are required to submit 1099-K or 1099-MISC forms directly to the IRS, leaving even casual or short-term landlords more exposed than ever.

Clear Start Tax notes that the most common red flags include:

• Unreported rental income from short-term or vacation rentals

• Overstated deductions, such as repairs, utilities, or travel

• Missing 1099 forms for contractors, cleaners, or management staff

• Failing to classify a property correctly (e.g., personal vs. rental use)

When discrepancies are detected, the IRS may issue an audit notice, demand payment, or begin enforced collection actions like bank levies or wage garnishment.

How Clear Start Tax Helps Landlords Resolve IRS Issues the Right Way

Clear Start Tax offers expert guidance to help property owners respond to IRS notices, correct filings, and avoid escalating penalties. Whether the issue stems from unfiled tax returns or improperly documented deductions, the firm provides a full review of the taxpayer’s rental income and expenses-and builds a path to resolution.

Their services include:

• Reviewing and amending past returns

• Organizing proof of legitimate deductions

• Requesting penalty abatement

• Negotiating IRS payment plans or settlement programs

“We’ve worked with clients who had no idea their part-time rental could lead to tens of thousands in tax liability,” said the Head of Client Solutions. “Once the IRS gets involved, you need expert support fast.”

Common Solutions for Landlords With IRS Debt

When landlords owe back taxes related to rental income, Clear Start Tax evaluates every available IRS program to identify the most strategic option. These may include:

• Offer in Compromise (OIC): Settle for less than you owe based on financial hardship

• Installment Agreement: Pay off the debt in monthly installments

• Penalty Abatement: Remove late fees if you meet IRS criteria

• Currently Not Collectible (CNC): Pause IRS collections temporarily due to inability to pay

Each program has specific qualifications, and Clear Start Tax ensures all supporting documentation is gathered, submitted, and followed through properly.

By answering a few simple questions, taxpayers can find out if they’re eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

Why Landlords Can’t Afford to Ignore IRS Rental Rules

Clear Start Tax emphasizes that landlords should not ignore IRS letters, assume small rental activity doesn’t count, or rely on platforms like Airbnb to handle tax reporting. The responsibility remains with the taxpayer, and the consequences for mistakes can be severe.

“Even just a couple thousand in unreported income can snowball into major penalties and interest,” said the Head of Client Solutions. “The key is acting early and working with someone who understands how to resolve it before it gets worse.”

About Clear Start Tax

Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm’s unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry.

Need Help With Back Taxes?

Click the link below:
https://clearstarttax.com/qualifytoday/
(888) 710-3533

Contact Information

Clear Start Tax
Corporate Communications Department
seo@clearstarttax.com
(949) 535-1627

SOURCE: Clear Start Tax

View the original press release on ACCESS Newswire