Topics in the news

Here you'll find items of current interest — new programs, recent guidance or timely reminders.

Tax updates and news from the IRS

The Tax updates and news from the IRS page is designed to help anyone whether they are now preparing their tax return or are awaiting processing of a return or refund. It also has the latest updates on IRS letters and notices. Newer updates will be placed at the top of that page. The IRS will also provide critical updates through social media.

Statement on IRS operations during lapse in appropriations

Due to the current lapse in appropriations, IRS operations are limited. However, the underlying tax law remains in effect, and all taxpayers must continue to meet their tax obligations as normal.

Penalty relief for information reporting on tips and overtime under OBBB

The Department of the Treasury and the IRS issued guidance providing penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the One, Big, Beautiful Bill.

Tax pros: Renew PTINs for 2026 tax season

The IRS reminds paid tax preparers that preparer tax identification numbers must be renewed annually, and the 2026 renewal period is now open. Also, all enrolled agents, regardless of whether they prepare tax returns, must renew their PTINs annually to maintain their active status. PTINs expire on Dec. 31 of the calendar year for which they are issued.

IRS issues FAQs on Form 1099-K threshold under OBBB

The IRS issued frequently asked questions in Fact Sheet 2025-08 PDF regarding the dollar threshold for filing Form 1099-K under the One, Big, Beautiful Bill.

The OBBB retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.

IRS issues FAQs to address Employee Retention Credits

The IRS issued frequently asked questions in Fact Sheet 2025-07 relating to the limitation on credits and refunds for Employee Retention Credits claimed for the third and fourth quarters of 2021 that were filed after Jan. 31, 2024. This limitation was enacted under the One, Big, Beautiful Bill.

Transition relief for businesses reporting car loan interest

The Department of the Treasury and the IRS provided transitional guidance for businesses required to report car loan interest received in 2025 under the One, Big, Beautiful Bill.

Inflation adjustments for tax year 2026

The IRS announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2025-32 PDF provides details about these annual adjustments.

Penalty relief for remittance transfer providers

The Department of the Treasury and the IRS issued guidance providing deposit penalty relief for the first three quarters of 2026 to remittance transfer providers. Notice 2025-55 provides relief in connection with the new excise tax imposed on certain remittance transfers under the One, Big, Beautiful Bill.

Paper tax refund checks phase out

The IRS announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law. This marks the first step of the broader transition to electronic payments.

Treasury and IRS issue guidance on “no tax on tips” provision

The Department of the Treasury and the Internal Revenue Service provided guidance listing occupations where workers customarily and regularly receive tips under the One, Big, Beautiful Bill. The proposed regulations list nearly 70 separate occupations of tipped workers, from bartenders to water taxi operators.

Taxpayers should check their withholding now for next year

Proper tax withholding now is key to avoiding surprises when filing tax returns next year. The IRS Tax Withholding Estimator is a free online tool that helps workers, independent contractors and retirees determine if they are having the right amount of federal income tax withheld from their paychecks.