IRS practice & procedure

TOPICS / TAX

November 24, 2025

About 1 million taxpayers to get automatic penalty relief next year

During a session at the AICPA National Tax Conference, the national taxpayer advocate said the IRS will start applying first-time abatements automatically next year.

November 21, 2025

IRS clarifies how employees can claim 2025 tip and overtime deductions

The IRS also is updating some income tax forms and instructions to help taxpayers claim the deductions.

November 19, 2025

AICPA warns that merger of IRS offices would ‘confuse’ taxpayers

The proposed merger of the Office of Professional Responsibility and the Return Preparer Office would blur “the public’s ability to perceive the distinction between credentialed, uncredentialed, and unenrolled preparers,” the AICPA said in a letter.

November 18, 2025

Is the IRS just between shutdowns? Former IRS commissioners are worried

Three former IRS leaders, speaking at the 2025 AICPA National Tax Conference, discussed the agency’s future and what happens if a shutdown occurs during filing season.

November 13, 2025

Inflation adjustments to retirement account limits issued for 2026

The IRS announced inflation-adjusted limits on benefits and contributions for various retirement accounts on Thursday, including maximum contribution amounts for 401(k) plans and traditional and Roth IRAs.

November 7, 2025

Almost 1,400 IRS employees receive layoff notices, adding to staff losses

In court documents filed in a lawsuit, officials said 1,446 Treasury employees received reduction-in-force notices, including 1,399 at the IRS.

November 6, 2025

IRS ends Direct File, shifts focus to Free File upgrades and private sector

The IRS cited low usage and high costs as reasons for shuttering the program, which began during the previous administration.

November 6, 2025

Real estate tax changes that advisers need to understand

A firm partner and AICPA conference speaker breaks down rule changes related to bonus depreciation and opportunity zone investment. Listen to the podcast episode or read the Q&A.

November 6, 2025

Employers get reporting relief on tips, overtime; won’t face penalties for tax year 2025

An IRS notice says employers won’t face penalties if they don’t provide a separate accounting of cash tips and overtime compensation for tax year 2025 under H.R. 1.

November 1, 2025

Tax Court allows ordinary deduction of termination fees

Rights and obligations of an agreement pursuant to which the taxpayer paid a “break fee” terminating a proposed merger were in the nature of services, the court held, denying the IRS’s recharacterization of the fee under Sec. 1234A as a capital loss.

November 1, 2025

Sixth Circuit affirms application of split-dollar regulation

A life insurance policy’s premiums were held nondeductible by a dentist’s practice, and its increase in cash value was taxable income to the dentist.

November 1, 2025

Frivolous arguments rejected by Tax Court

Cut-and-paste “gibberish” from tax-protester websites does not produce winning arguments.

October 22, 2025

Congress passes bill requiring IRS to clarify math error notices

The AICPA praised the Senate passage of the bill, saying it will enhance IRS operations and improve the taxpayer experience.

October 22, 2025

AICPA seeks IRS guidance on tip, overtime tax deductions for 2025

The AICPA said taxpayers and tax professionals need certainty about how to claim the deductions for 2025. The IRS has said it will not update its forms until 2026.

October 21, 2025

IRS offers relief on car loan interest reporting under H.R. 1

The agency said it is providing the relief because both lenders and the IRS need more time to comply with the new car loan interest reporting requirements added by H.R. 1.

October 9, 2025

IRS furloughs nearly half its workers, closes most operations

Under an updated contingency plan, nearly 40,000 of the approximately 74,000 IRS workers will stay on the job, including more than 24,000 in Taxpayer Services. In response to the plan, the AICPA recommended “fair, reasonable, and practical relief measures to mitigate the negative impact of the shutdown” on taxpayers and practitioners.

October 9, 2025

Annual inflation adjustments announced for tax year 2026

The IRS published annual inflation adjustments for more than 60 tax provisions for tax year 2026, in addition to changes to the standard deduction for tax year 2025.

October 8, 2025

Shutdown concerns, the quest for tax guidance, the future of IRS service

An AICPA tax leader provides context on IRS operations during a shutdown, why guidance is needed in particular this year for tax practitioners, and why the definition of filing season is “a point of contention.” Listen to the podcast episode or read the Q&A.

October 7, 2025

Social Security Administration head to also serve in new IRS role

Treasury Secretary Scott Bessent said Monday that Frank Bisignano, the commissioner of the Social Security Administration, will serve in the newly created role of CEO of the IRS.

October 6, 2025

AICPA calls for fully staffed IRS regardless of shutdown length

With an Oct. 15 tax deadline looming for many and guidance needed on H.R. 1, the AICPA says it’s imperative that the IRS keep all employees on the job.

FROM THIS MONTH'S ISSUE

4 ways solo practitioners can stand out

Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.