IRS practice & procedure

TOPICS / TAX

April 3, 2026

IRS tapped Inflation Reduction Act funds to cover 2025 filing season, watchdog says

TIGTA found the IRS spent $4.8 billion in Inflation Reduction Act funds, which were intended to supplement its annual appropriation, on labor and IT to keep the 2025 tax season on track.

April 1, 2026

Court allows taxpayer’s refund suit to proceed

A district court declined to adopt a magistrate’s report recommending dismissal of a taxpayer’s complaint on the grounds that her refund claim was untimely.

April 1, 2026

Taxpayer received deficiency notices mailed to her office address

The Tax Court affirmed an IRS Office of Appeals determination to sustain a proposed levy against a taxpayer who failed to file tax returns and did not respond to notices of deficiency that were mailed to her office.

March 25, 2026

IRS watchdog cites resource limits, duplication in partnership audits

The Treasury Inspector General for Tax Administration assessed a soft-letter initiative and the IRS’s examinations of 82 major U.S. partnerships.

March 20, 2026

AICPA seeks clarity on revamped paid family leave credit rules

The request came in an AICPA letter to Treasury and the IRS seeking guidance on how employers should implement changes to the paid family leave credit.

March 20, 2026

IRS provides guidance on business interest limitation elections

The guidance in Rev. Proc. 2026-17 is provided in response to H.R. 1’s amendments to Secs. 163(j) and 168(k).

March 18, 2026

Adequate identification relief extended through 2026

The relief allows taxpayers to use alternative methods to make adequate identification of digital asset units that are sold, disposed of, or transferred during the relief period.

March 16, 2026

AICPA pushes IRS to ease and expand first‑time abatement rules

The recommendations include allowing taxpayers to rely on substitute reasonable cause when appropriate, permitting them to reserve the automatic first-time abatement for future use.

March 12, 2026

Tax advocacy: AICPA experts on new bills shaping tax preparer rules

Two Washington‑based AICPA tax leaders break down a recent GAO report and proposed bipartisan legislation that would reshape rules on tax preparation. Listen to the podcast episode or read the Q&A.

March 9, 2026

IRS proposes regulations for Trump accounts, pilot program

Proposed regulations under Sec. 530A provide information on how to open initial Trump accounts, and proposed regulations under Sec. 6434 provide guidance on the program that provides $1,000 contributions to Trump accounts for eligible children.

March 6, 2026

IRS seeks to scrap basis‑shifting TOI reporting regulations

If proposed regulations become final, the withdrawal would let taxpayers treat the January 2025 transaction-of-interest regulations as having never taken effect.

March 6, 2026

IRS Dirty Dozen adds new capital gains scheme for 2026

The IRS says a surge in fabricated Form 2439 filings prompted the only new addition to this year’s Dirty Dozen, underscoring how quickly tax schemes evolve.

March 5, 2026

IRS proposal eases provision of 1099-DA statements by digital asset brokers

The proposed regulations would shift digital-asset reporting toward electronic-only delivery by loosening consent requirements for brokers.

March 4, 2026

IRS issues higher 2026 depreciation limits for passenger automobiles

The IRS issued the 2026 depreciation limitations for passenger vehicles, including those for which bonus depreciation is applied.

March 2, 2026

New Schedule 1-A for tips, OT, car loans, and senior deductions published

The Schedule 1-A does not differ from the draft version issued last year, but instructions for Form 1040 provide details and examples on the four temporary deductions.

March 2, 2026

Senate bill targets preparers who break the law, expands IRS reforms

The AICPA supports the Taxpayer Assistance and Service Act but seeks further improvements.

March 1, 2026

District court dismisses taxpayer’s refund claim

The court held that it lacked subject-matter jurisdiction over a taxpayer’s refund claim that did not meet the full-payment rule set forth in Flora, 357 U.S. 63 (1958).

March 1, 2026

Nondeductible W-2 wages not included in Sec. 199A deduction computation

The Tax Court determined that W-2 wages that are not deductible under Sec. 280E in calculating taxable income are not included when calculating the Sec. 199A qualified business income (QBI) deduction.

March 1, 2026

Court determines taxpayer lacked profit motive

The Tax Court applied the hobby loss rules under Sec. 183 to disallow losses from a taxpayer’s ranch.

February 27, 2026

IRS should open Trump accounts for eligible children automatically, AICPA says

In a letter to the IRS and Treasury, the AICPA said enrolling children by default “would promote equitable access, reduce procedural barriers, and strengthen the intended reach of the program.”

FROM THIS MONTH'S ISSUE

Cannabis dispensary denied ERC

The Court of Federal Claims held that Sec. 280E, which prohibits deductions and credits for businesses trafficking in controlled substances, applies to the employee retention credit (ERC), including its refundable portion, and denied a cannabis business’s claim for a refundable ERC.