Category: Newsletters – IRS – Company

Issue Number: Tax Tip 2026-47

Put a plan in place for potential disasters

Hurricane season officially started at the beginning of the month, but they aren’t the only type of disaster that can occur. Taxpayers are encouraged to take steps now to ensure they’re prepared in case they are impacted by a disaster or emergency.

Review and update emergency preparedness plan annually
Taxpayers should review their emergency preparedness plan, at least annually. Ready.gov has resources and checklists to help people put together their emergency preparedness plan.

Create electronic copies of documents
Taxpayers should keep important documents and storage devices in a safe place. If original documents are available only on paper, taxpayers should consider converting them to electronic versions and storing them on a USB flash drive or in the cloud. Many financial institutions provide statements electronically. All taxpayers are encouraged to create an IRS Individual Account. They can access online transcripts, notices, and other tax information.

Document valuables
Take pictures or video of valuables before disaster strikes. It makes it easier to claim insurance and tax benefits. IRS.gov has a disaster loss workbook that can help taxpayers compile a room-by-room list of belongings.

Understand tax relief available for disaster situations

• Information on disaster assistance and emergency relief for individuals and businesses disaster assistance and emergency relief for individuals and businesses is available at IRS.gov. Taxpayers should also review Publication 547, Casualties, Disasters and Thefts.
• Taxpayers who live in a federally declared disaster area can visit Around the nation on IRS.gov and click on their state to review the available disaster tax relief. Those who live in designated areas for disaster relief receive automatic filing and payment postponements for many currently due tax returns and don’t need to contact the agency to get relief.
• Taxpayers and practitioners who live in a federally declared disaster area with disaster-related questions can call the IRS Special Services Hotline at 866-562-5227 to speak with an IRS specialist.

More information

• Publication 3067, IRS Disaster Assistance

Subscribe to IRS Tax Tips

Back to top

Issue Number:  IR-2026-76

Inside This Issue

More than half the U.S. States signed up to participate in the federal scholarship tax credit program enacted under the One, Big, Beautiful Bill

IR-2026-76, June 8, 2026

WASHINGTON — The Internal Revenue Service announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program, which enables eligible taxpayers to claim a federal tax credit for qualified contributions to Scholarship Granting Organizations (SGOs) providing scholarships for qualified elementary and secondary education expenses.

For taxpayers to claim the tax credit of up to $1,700, they must contribute to an SGO located in a state that elects to participate in the FSTC program and submits a list of qualified SGOs. State participation in the program, enacted under the One, Big, Beautiful Bill, is voluntary.

“It’s encouraging to see that 27 states have already signed up to participate in this program that promotes and supports elementary and secondary education,” said IRS Chief Executive Officer Frank J. Bisignano. “We are hopeful that additional states will decide to participate.”

As of early 2026 multiple states have formally opted into the program, including: Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.

The IRS will maintain and update the official list of participating states as they complete the required election and submission process. The most current information is available at Federal Scholarship Tax Credit. Some state websites may not yet reflect their current participation status.

For additional information on Section 25F and the FSTC, visit One Big, Beautiful Bill Provisions on IRS.gov.

Back to Top

Issue Number:    IR-2025-75

Inside This Issue

IRS and Security Summit partners announce new framework to better protect taxpayers and tax revenue from fraud

IR-2026-75, June 8, 2026

WASHINGTON — The Internal Revenue Service and Security Summit partners today announced a restructuring of the public-private partnership designed to strengthen protections and enhance information sharing across the tax system. The change supports ongoing efforts to safeguard taxpayers from identity theft and related fraud.

The Security Summit is a unique public-private partnership comprised of the IRS, state tax administrators, tax software companies, the tax professional community and the larger tax community. The goal of the Security Summit is to combat tax-related identity theft as a united front. Since its inception, the work of the Security Summit has helped protect millions of taxpayers against identity theft and prevented billions of dollars from being wrongly paid out to fraudsters.

As the IRS and Summit partners have strengthened their systems, identity thieves have increasingly shifted to stealing underlying tax and financial information from taxpayers, businesses and tax professionals to file authentic-looking fraudulent returns, hoping to evade traditional safeguards.

“The ongoing collaboration between the IRS and its Security Summit partners demonstrates the value of bringing private sector expertise and awareness to help improve how government works,” said IRS Chief Executive Office Frank J. Bisignano. “For more than ten years, both parties have benefited from this arrangement and will continue to do so into the future.”

The new Security Summit structure enhances collaboration with payroll partners, whose wage and withholding data has become an attractive target for cybercriminals. The five new work groups focus on improving early detection of suspicious activity, enhancing data protection practices and reducing the risk of compromised information used to facilitate fraud.

“Identity thieves continue to evolve, and so must we,” said IRS Return Integrity & Compliance Services Director Jim Clifford, who oversees the program. “By aligning our work across every stage of the tax lifecycle and strengthening collaboration with partners, including the payroll industry, we are better positioned to stop fraud earlier and protect taxpayers and the nation’s revenue.”

The new work groups include:

1. Pre-Filing: Early identification of potentially fraudulent information returns and suspicious behavior within payroll and tax administration processes that could enable identity theft or fraud, including closer coordination with payroll providers.

2. Forecasting: Identification of emerging schemes and proactive anticipation of threats before they are widely exploited.

3. Preventing: Implementation of proactive measures and tools designed to reduce opportunities for fraud, including strengthening safeguards across payroll systems and data exchanges.

4. Detecting and Reporting: Real-time identification of fraud indicators and enhanced intelligence-sharing among partners, including payroll industry stakeholders.

5. Responding: Deployment of technical controls and coordinated operational responses to security incidents.

In addition to the work groups, the Security Summit also utilizes the Coalition Against Scam and Scheme Threats, whose members focus on rapid assessment and response to time-sensitive threats.  

Back to Top

Issue Number:    IR-2026-74

Inside This Issue

IRS describes agency’s activities in fiscal year 2025 Data Book

IR-2026-74, June 5, 2026

WASHINGTON — The Internal Revenue Service today issued the 2025 Data Book detailing the agency’s activities during fiscal year 2025. The report provides a statistical overview of the agency’s operations and the work employees performed to meet statutory responsibilities.

“Fiscal Year 2025 was a pivotal year, as we began the process of implementing tax relief for hardworking Americans enacted as part of the Working Families Tax Cuts Act,” said IRS CEO Frank J. Bisignano. “The numbers in the Data Book tell the story of an organization that serves as a key partner in the administration’s mission.”

During the 2026 filing season, roughly 45% of individual tax returns filed claimed one or more of the new tax benefits from the WFTC: no tax on tips, no tax on overtime, no tax on car loan interest, and/or the enhanced tax deduction for seniors. The average refund on a return claiming one of these deductions was over $3,200, as of May 27.

To enhance compliance, safeguard privacy, and provide the best service and experience for taxpayers, the IRS is pivoting to modern technology. Online tools, including IRS Online Account for individuals and businesses, have been upgraded to expand access and add new features. Expanded technology and advanced analytics allow the IRS to identify high-risk areas of non-compliance and tax fraud with greater accuracy and efficiency. The CEO also highlights efforts to transform the IRS into a digital-first agency and reduce paper processing at the service through the “zero paper” initiative.

Highlights from fiscal year 2025

• Returns filed: The IRS processed 271.4 million federal tax returns and supplemental documents, including almost 162.8 million individual income tax returns. Revenue collected exceeded $5.3 trillion.
• Taxpayer Service: Customer service representatives answered almost 18.6 million calls. At 363 Taxpayer Assistance Centers nationwide, employees assisted nearly 2 million taxpayers.
• IRS online: As important as phone and in-person assistance are, taxpayers continued to show their preference for online services. There were nearly 417 million inquiries on our popular “Where’s My Refund?” online tool that enables taxpayers to check the status of their tax refund – up 9% from FY 2024.

To learn more, view the complete Data Book on IRS.gov.

Back to Top

Issue Number:    IR-2026-73

Inside This Issue

Treasury, IRS announce intent to issue proposed regulations for excise tax on excess tax-exempt organization executive compensation under the One, Big, Beautiful Bill

IR-2026-73, June 5, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2026-36 announcing intent to issue proposed regulations addressing the tax on excessive compensation and excess parachute payments to employees of tax-exempt organizations under the One, Big, Beautiful Bill.

“The new law strengthens the accountability of tax-exempt organizations by expanding tax compliance requirements for certain organizations paying excessive compensation and excess parachute payments to their executives,” said IRS Chief Executive Officer Frank J. Bisignano. “It broadens the scope of tax from a limited group of executives to potentially any highly compensated employee.”

Expanded application of tax on excess compensation under OBBB

The OBBB expanded the application of excise tax on excess compensation by broadening the definition of covered employee of an applicable tax-exempt organization (ATEO). Previously, this tax applied to the five highest-compensated employees for the tax year. Now the tax may apply to any employee with compensation exceeding $1 million in a tax year or an excess parachute payment.

Notice 2026-36 clarifies that the amended definition of covered employee, which will be addressed in the forthcoming proposed regulations, includes only:

• Any individual who was an employee of an ATEO in any tax year beginning after Dec. 31, 2016, and on or before Dec. 31, 2025, if the individual was a covered employee for the tax year under prior law, and
• Any individual who is an employee of an ATEO in any tax year beginning after Dec. 31, 2025 (unless a covered employee exception applies).

The notice also sets out important exceptions for individuals who provide volunteer services to tax-exempt organizations that could otherwise be impacted by the OBBB changes. Specifically, it allows ATEOs and their related organizations to rely on the limited hours and nonexempt funds exceptions to the post-OBBB definition of covered employee until further guidance is issued.

Treasury and the IRS anticipate the forthcoming proposed regulations will include covered employee exceptions for limited hours and nonexempt funds. The proposed regulations are not expected to apply to tax years beginning before the issuance of final regulations.

More information

Treasury and the IRS request comments on all aspects of this notice and any other issues that should be addressed in the forthcoming proposed regulations by Aug. 4, 2026. Comments are particularly requested on the issues raised by today’s notice. Complete instructions on submitting comments are included in the notice. 

For more information, see One, Big, Beautiful Bill Provisions on IRS.gov.

Back to Top