The IRS issued final regulations increasing the cost of an estate tax closing letter to $76 from $56, adopting without change proposed regulations issued in June.
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Tax
IRS raises per diem rates for business travel effective Oct. 1
In its annual update, the IRS increased the special per diem rates taxpayers may use to substantiate business travel expenses for the upcoming travel year and updated its list of high-cost localities.
AICPA, former IRS commissioner to lead initiative on AI in tax
Participants in the Council on AI Risk in Tax, led by the AICPA and former IRS commissioner Danny Werfel, include leaders from all areas of the tax world who will work together to promote the responsible use of AI in tax administration and practice.
IRS cyber weaknesses put taxpayer data at risk again, TIGTA says
For the second consecutive year, a government watchdog found the IRS’s cybersecurity program ineffective. TIGTA warned that taxpayer data could be vulnerable if security weaknesses are not addressed.
Unclear instructions, limited awareness plagued CP53E rollout, TIGTA says
Many CPAs and their clients experienced confusion over IRS CP53E notices during the 2026 filing season. A TIGTA report confirms those concerns and sheds new light on how the IRS implemented its paperless-payment initiative.
Government says Kwong court misread COVID tax relief law
In its opening brief to a federal appeals court Wednesday, the federal government said a lower court ruling in Kwong improperly turned a 60-day extension into a postponement period lasting over three years.
IRS delayed action on thousands of high-income nonfiler cases, TIGTA says
A TIGTA report found that nearly 39,000 high-priority nonfiler cases were delayed in the IRS’s high-income nonfiler initiative because of resource concerns. The IRS said it has since advanced all affected cases.
AICPA seeks IRS clarity on AI guidelines, CPA fees
The AICPA is seeking clarification from the IRS on guidelines suggesting that tax practitioners should pass AI-related cost savings on to clients. Concerns about language in the guidelines include the implication of not allowing for a value-pricing model and overlooking the costs of implementing and governing the technology.
Congress approves funding bill that maintains IRS budget
A stopgap funding bill headed to the president would maintain the IRS’s $11.2 billion annual budget through Dec. 11 and prevent a second $11.6 billion funding rescission for now.
A recipe for sanctions: AI-hallucinated citations in tax
AI can speed tax research, but it can also invent cases. Your firm needs guardrails to avoid potential trouble.
Strategic planning for tax advisory
Joel Morris, vice president & segment leader, Research & Advisory Segment, Wolters Kluwer Tax & Accounting, discusses how advisory services can help accountants shape outcomes, not simply report them.
2026 tax software survey
CPAs tell how their professional tax preparation software stacked up this tax season.
Sixth Circuit holds home-distilling ban is constitutional
The Sixth Circuit held that the Internal Revenue Code’s ban on distilling alcoholic spirits in a dwelling house is a necessary and proper means of collecting the federal excise tax on spirits and therefore the ban is constitutional under the U.S. Constitution’s Necessary and Proper Clause.
TIGTA: IRS unable to prevent $213 million in improper EITC payments to individuals with nonwork SSNs
The Treasury Inspector General for Tax Administration reported that the IRS lacks sufficient or reliable data to systemically prevent individuals with ineligible nonwork Social Security numbers from receiving the earned income tax credit.
Motion for a more definite statement denied
The IRS’s motion for a more definite statement was denied because it had sufficient information to respond to the taxpayers’ complaint for a refund claim.
Line items
Click the headlines for these full stories. AICPA recommends improvements to CP53E notice process A letter to the IRS cites erroneous notices, late guidance, and practitioner confusion. It also calls for clearer rules and system changes. IRS to merge tax practitioner offices despite AICPA opposition The new Tax Professional Management Office will combine
How CPAs can expand from tax into personal financial planning
Find out how CPAs in tax practice can add personal financial planning services and build deeper relationships with clients.
IRS enforcement activity fell despite record tax collections, TIGTA says
Individual audit starts fell 30% in fiscal 2025, including a 27% drop among taxpayers with income above $400,000, as IRS staffing levels declined, TIGTA said.
IRS should automate name, address changes, AICPA says
A letter to the IRS says that processing times of six to eight weeks or longer for taxpayer name and address changes can create compliance risks and should be reduced through automation.
Taxpayers can now access IRS compliance report online
A new IRS Individual Online Account feature lets taxpayers download a digitally authenticated compliance report for use when applying for jobs, loans, government benefits, and other services.
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