Treasury posted a lapsed appropriations contingency plan late last week that calls for the IRS to be fully staffed through Friday during the partial government shutdown.
Advertisement
TOPICS / TAX
IRS practice & procedure
Court upholds IRS authority to suspend EFINs
A district court held that the IRS had not violated a tax preparer’s Fifth Amendment due process rights or the Administrative Procedure Act (APA) when it suspended the preparer’s electronic filing identification numbers (EFINs) and expelled the preparer from the IRS e-file program.
Basketball officials’ association denied Sec. 501(c)(3) status
The association failed to meet both the organizational and operational tests under Sec. 501(c)(3) and failed to qualify as a “qualified amateur sports organization” under Sec. 501(j)(2).
New law, IRS workforce cuts raise red flags for tax season, reports say
Separate reports from two federal oversight bodies warn that the IRS may struggle to maintain service levels between now and April 15, possibly causing delays in tax refunds and in getting answers by phone.
SECURE 2.0 amendment deadline extended for IRAs, other retirement plans
The IRS extended the deadline for SECURE 2.0 related amendments to IRAs, SEPs, and SIMPLE IRAs to Dec. 31, 2027, saying that additional time is needed to complete model language.
IRS releases FAQs on qualified overtime pay deduction under H.R. 1
An IRS fact sheet explains when overtime compensation qualifies for the H.R. 1 deduction and how Fair Labor Standards Act rules apply, including for federal employees.
IRS Advisory Council report defends workers, criticizes budget and staff cuts
In its annual report, IRSAC said the IRS has been through “an extraordinarily difficult year” with budget and staff cuts while preparing for numerous tax law changes. The report also noted tax practitioners’ prolonged wait times when contacting the IRS.
AICPA tax policy and advocacy successes: 2025 highlights
The AICPA’s Tax Division volunteer committees and technical resource panels can point to many positive results last year from its advocacy to Treasury, the IRS, and Congress for law changes and administrative guidance.
Prop. regs. amend Sec. 3406 backup withholding regulations
The IRS issued the proposed regulations to reflect changes made by H.R. 1 to the threshold for backup withholding for third-party settlement organizations such as PayPal, Venmo, and others.
IRS IT overhaul set to finish by 2028, former official says
After years of delays, the IRS expects to complete modernization of its fragmented IT systems by 2028, a former acting IRS commissioner said at an AICPA webcast.
IRS to start accepting and processing tax returns on Jan. 26
The IRS acknowledged that new tax provisions could affect federal taxes, credits, and deductions. The start of filing season is in line with previous years.
Electronic filing for business tax returns starts next week
The IRS said it will begin accepting business tax returns electronically next week. No date has been announced yet for individual tax returns.
AICPA calls on IRS to automate Sec. 1033 extension requests
The recommendation aims to cut delays that leave taxpayers uncertain about disaster related replacement deadlines for property.
Proposed regulations provide guidance on car loan interest deduction
In proposed regulations for the car loan interest deduction, the IRS addresses issues for taxpayers and lenders, including eligibility criteria for the deduction and information-reporting requirements.
Business standard mileage rate increases for 2026
The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 72.5 cents per mile driven, up 2.5 cents from 2025.
Second Circuit denies SALT cap workaround
Final regulations prohibiting a federal charitable deduction for contributions to a state or local fund for which the donor receives a state or local tax credit are upheld under a Loper Bright analysis.
Get ready for tax season
Guide clients through the significant changes in H.R. 1.
IRS updates FAQs on business interest limitation, premium tax credit
The updates reflect changes made in H.R. 1, P.L. 119–21, commonly known as the One Big Beautiful Bill Act.
Why 2026 is another ‘big tax year’
Get an inside look at the AICPA’s tax advocacy focus, including improving taxpayer service and shaping IRS processes for a smoother filing season. Listen to the podcast episode or read the Q&A with the AICPA’s vice president–Tax Policy & Advocacy.
IRS clarifies health savings account changes in H.R. 1 in new notice
Among other changes, the guidance explains that bronze and catastrophic plans are considered HSA-compatible under Sec. 223.
Features
FROM THIS MONTH'S ISSUE
Promises of ‘fast and easy’ threaten SOC credibility
CPAs warn that an ongoing push for high-volume SOC services may come at the cost of quality and objectivity.
From The Tax Adviser
January 31, 2026
Trust distributions in kind and the Sec. 643(e)(3) election
January 31, 2026
Effects of the OBBBA on higher education
December 31, 2025
