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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.
IRS resumes normal activities following lapse in appropriations
The IRS has resumed normal operations following the conclusion of the government shutdown, including reopening the agency’s Taxpayer Assistance Centers. As full operations recommenced, it is important for taxpayers and tax professionals to be aware of several key pieces of information in multiple areas.
Guidance for individuals who received tips or overtime during tax year 2025
The Department of the Treasury and the IRS issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for tax year 2025. Notice 2025-69 PDF clarifies for workers how to determine the amount of their deduction without receiving a separate accounting from their employer for cash tips or qualified overtime on information returns such as Form W-2 or Form 1099, as those forms remain unchanged for the current tax year
Guidance on new tax benefit on loans for rural communities
The Department of the Treasury and the IRS issued guidance for a new tax benefit for certain lenders that make loans secured by rural or agricultural real property under the One, Big, Beautiful Bill. Notice 2025-71 PDF provides interim guidance that taxpayers may rely on until the Treasury Department and the IRS issue forthcoming proposed regulations.
Interest rates for the first quarter of 2026
The interest rates will remain the same for the calendar quarter beginning Jan. 1, 2026. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily.
401(k) limit increase for 2026
The IRS announced that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. The agency also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026.
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.
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.