IRS practice & procedure

TOPICS / TAX

October 2, 2025

Job cuts mean strong 2025 tax season may be hard to repeat, IRS watchdog warns

Critical staff stayed on the job for this year’s tax season, but that won’t be the case in 2026, the Treasury Inspector General for Tax Administration said in a new report.

October 1, 2025

IRS removes associated property rule in final interest capitalization regulations

The final regulations make minor clarifying changes to proposed regulations issued last year.

October 1, 2025

Spouse is not entitled to sales proceeds in a judicial sale of taxpayer’s home

A taxpayer’s spouse lacked an interest in the home under state law, the Eighth Circuit held.

October 1, 2025

IRS fails to meet its burden that a valid notice of deficiency was mailed timely

The IRS was not entitled to a presumption of proper mailing for a notice with an erroneous address that it contended the taxpayer nonetheless received timely, the Tax Court held.

September 30, 2025

IRS withdraws prop. regs. affecting corporate spinoff transactions

The proposed regulations were withdrawn in response to comments that criticized the proposed guidance, according to the IRS.

September 29, 2025

IRS shutdown plan: Employees stay on the job for first 5 workdays

The IRS would use money from the Inflation Reduction Act to keep the agency’s over 74,000 employees working for the first five days of a potential government shutdown.

September 29, 2025

IRS trims PTIN fee as renewal season nears

The fee reduction comes as a result of a biennial review of PTIN fees.

September 24, 2025

Paper tax refund checks on the way out as IRS shifts to electronic payments

The IRS will phase out the use of paper checks for refunds beginning Sept. 30 and will publish detailed guidance later.

September 23, 2025

IRS keeps per diem rates unchanged for business travel year starting Oct. 1

In its list of high-cost and low-cost localities, the IRS kept per diem rates for travel, meals, and incidental expenses unchanged for the new annual period starting Oct. 1.

September 19, 2025

AICPA urges IRS to modernize estate and trust tax forms

In a letter to the IRS, the AICPA said the changes align with an executive order mandating that all federal tax payments and refunds be processed electronically.

September 18, 2025

‘We’re still the thinkers’ — a reminder for tax pros in the AI era

Tax expert Annette Nellen highlights several tax provisions in the new budget law and why that law will be the main topic of conversation at the AICPA & CIMA National Tax Conference in November. Listen to the podcast episode or read the Q&A.

September 15, 2025

IRS finalizes regulations for Roth catch-up contributions under SECURE 2.0

The final regulations are similar to the proposed regulations issued in January, with some changes that the IRS said were made in response to comments.

September 9, 2025

IRS warns taxpayers: Social media advice can lead to costly penalties

Misleading posts about credits like the fuel tax credit are landing taxpayers in trouble — with fines up to $5,000 for frivolous returns.

September 4, 2025

Treasury posts preliminary list of jobs eligible for no tax on tips

The list has a variety of occupations that customarily receive tips, including bartenders, dancers, and digital creators.

September 1, 2025

Taxpayer’s circumstances do not warrant equitable tolling

The Tax Court held that the taxpayer did not show that he pursued his rights diligently or was prevented by extraordinary circumstances from filing his petition timely.

September 1, 2025

When does debt become worthless?

The Ninth Circuit, affirming the Tax Court, recently held that to deduct a nonbusiness bad debt, the debt must be “wholly worthless,” and if the debtor reports cancellation-of-debt (COD) income, the discharged debt is not thereby presumed to be worthless to the creditor. Facts: From 2007 to 2010, Michael R.

September 1, 2025

Tax Court denies $23 million façade easement deduction

The Tax Court denied a limited liability company’s (LLC’s) claimed charitable conservation contribution deduction under Sec. 170(h) for its donation of a façade easement because the LLC failed to establish that the building was a “certified historic structure” under Sec. 170(h)(4)(C). The court also rejected the LLC’s argument that the

August 28, 2025

Draft 2026 Form W-2 includes boxes and codes for tips and overtime

The IRS said previously that it will not release a new form for 2025, even though the temporary H.R. 1 provisions are effective this year, but it will provide transition relief.

August 25, 2025

IRS seeks to fill ‘critical vacancies’ as workforce declines 25%

The IRS has asked some employees who accepted deferred resignation offers if they want to stay on the job.

August 22, 2025

Will budget, staff cuts impede IRS modernization? Former commissioner weighs in

Former IRS Commissioner Danny Werfel says the cuts, combined with the need to reengineer systems for the OBBBA, will make it difficult for the IRS to succeed at improving technology.

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.