Category: Newsletters – IRS – Company

Issue Number:  IR-2026-60

Inside This Issue

IRS seeking applications for Tax Counseling for the Elderly and Volunteer Income Tax Assistance program grants

IR-2026-60 May 1, 2026

WASHINGTON — The Internal Revenue Service is now accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants.

These grants allow eligible organizations to receive annual funding for up to three years to provide free federal tax return preparation assistance. In 2026, the IRS awarded TCE grantees $12 million and the VITA grantees $41 million.

Tax Counseling for the Elderly and Volunteer Income Tax Assistance programs provide invaluable, free assistance to taxpayers in need,” said IRS Chief Executive Officer Frank J. Bisignano. “The VITA program, which has been around for more than 50 years, provides help to America’s underserved populations, while the TCE program offers specialized assistance for older Americans related to pensions and retirement plans.”

Applications will be accepted on Grants.gov from May 1, 2026, through May 31, 2026, for both programs. Organizations can visit IRS VITA and TCE grants for grant application and program information.

The IRS established the TCE program in 1978 to provide tax counseling and return preparation primarily for individuals aged 60 and older. The IRS also provides training and technical assistance to support these services nationwide.

The VITA grant program, established in 2007, supplements the original VITA initiative, launched in 1969. The grant program helps expand services to underserved populations in the hard-to-reach urban and non-urban areas, increase the ability of taxpayers to file returns electronically, enhance volunteer training, and improve the accuracy rate of returns prepared at VITA sites.

More information

• IRS VITA and TCE grants
• Publication 1101, Application Package and Guidelines for Managing a TCE Program
• Publication 4671, VITA Grant Program Overview and Application Instructions
• Publication 6085, Tax Counseling for the Elderly Notice of Funding Opportunity
• Publication 6086, Volunteer Income tax Assistance Notice of Funding Opportunity

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Issue Number:  2026-09

    Announcing National Small Business Week

The IRS joins the U.S. Small Business Administration in celebrating National Small Business Week May 3-9, 2026. This week honors the critical role America’s 36 million small businesses play in the nation’s economy.

Join the Small Business Administration Virtual Summit
As part of National Small Business Week, the IRS is participating in the U.S. Small Business Administration’s free virtual summit Tuesday, May 5 and Wednesday, May 6. The summit will include workshops on AI, e-commerce, financing, and other important business topics.

Join a free webinar on understanding federal taxes
The IRS is hosting free webinar on May 7, 2 p.m. ET, Understanding Federal Taxes for Small Business.

This webinar will cover:

• IRS Form 1040 Schedule C Profit/Loss from Business
• The types of business structures
• What IRS resources and online tools are available for small business owners

This session will also include live question and answer session.
Click here to register.

Check out National Small Business Week on IRS.gov
The IRS has a special National Small Business Week page on IRS.gov highlighting tools, guidance and educational resources to help small business owners meet their tax obligations and plan for success.

Bookmark this page and come back to check it throughout the week for more information on small business topics including:

• Scams and schemes awareness and prevention
• Best practices for new and existing businesses
• Smart planning for small business success
• Transformation and improvements by using tools and technology
• The importance of disaster preparedness

Follow the IRS on social media
Protect yourself from misinformation and scams by following the IRS verified social media accounts. Be sure to follow @IRSsmallbiz on X for the latest IRS news and guidance for small business owners.

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Issue Number: Tax Tip 2026-36

It’s not too early to start planning for next year: Check withholding now

Even though the tax filing deadline for tax year 2025 passed a couple weeks ago, it’s not too early to start planning for next filing season. Planning now can help taxpayers avoid surprises next year. One action that can be taken is checking for proper tax withholding.

What is withholding?
Taxpayers need to pay their tax as they receive their income, and they do this through withholding. For employees, “withholding” refers to the federal income tax portion of each paycheck that an employer takes out for tax purposes. It can also be the amount from earnings self-employed people and others voluntarily set aside to pay their estimated taxes.

How taxpayers can check their withholding
The IRS Tax Withholding Estimator is a free, easy-to-use tool that helps workers and retirees estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.

The estimator reflects the changes to credits and deductions under the One, Big, Beautiful Bill. This includes the deductions for tips, overtime, car loan interest and enhanced deduction for seniors. It also accounts for updates tied to family-related credits, homeownership, and charitable giving.

What are the benefits of using the IRS Tax Withholding Estimator?
By using the estimator, taxpayers can manage their estimates based on any personal life change, such as buying a home, changing jobs, having a child or changing their marital status.

For people who recently completed their 2025 tax return, the IRS advises using the IRS Tax Withholding Estimator to consider all income sources such as full-time wages, side jobs and any sale of services or goods.

By adjusting tax withholding, taxpayers can:

• Prevent owing money and potential penalties at tax time
• Adjust withholding to increase take-home pay instead of waiting for a refund

What else taxpayers need
For an effective tax withholding estimate, taxpayers will need certain documents including:

• All income statements, including their spouse’s if filing jointly
• Data from other sources of earnings
• Their most recent income tax return

More information

• Publication 505, Tax Withholding and Estimated Tax
• Tax Withholding Estimator FAQs

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Issue Number:  IR-2026-59

Inside This Issue

Treasury, IRS provide guidance on a new method for recovering federal excise tax paid on dyed fuel established under the One, Big, Beautiful Bill

IR-2026-59, April 30, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued temporary regulations and the accompanying notice of proposed rulemaking on a new method for recovering federal excise tax paid on dyed fuel established under the One, Big, Beautiful Bill.

These temporary regulations provide the procedures by which a taxpayer may recover federal excise taxes paid on clear diesel fuel or kerosene if that taxpayer later removed the fuel from a terminal as dyed fuel for nontaxable use. They also limit the claimants to taxpayers that paid to the IRS the original tax on the dyed fuel to which the claim relates.

Submitting a dyed fuel refund claim

The temporary regulations provide guidance to determine eligibility and rules for filing a claim for a dyed fuel refund. Taxpayers who paid tax on diesel fuel or kerosene and later removed the fuel from a terminal as eligible dyed fuel on or after Dec. 31, 2025, can submit a claim for refund, provided the following requirements are met:

1. The dyed fuel was previously taxed, and the tax was not credited or refunded.
2. The fuel is indelibly dyed by mechanical injection and removed from an approved terminal for a nontaxable use on or after Dec. 31, 2025.
3. The claimant must be the taxpayer that paid the prior fuel excise tax imposed on such fuel.
4. The claimant meets the reporting requirements as described in today’s guidance.
5. The claimant uses updated Form 8849, Claim for Refund of Excise Taxes and Schedule 5 (Form 8849), Section 4081(e) and 6435 Claims, including all information and documentation required by the forms and form instructions.
6. The claimant follows all other procedures listed in the guidance.   

Treasury and IRS recognize the importance of providing clarity to taxpayers through guidance that can be relied on to file claims and structure business arrangements as soon as possible. To enable this, the temporary regulations are effective immediately. They will expire no later than 3 years from today’s effective date and will be replaced with permanent regulations. Treasury and IRS also note that absent a statutory change, they currently lack the authority to pay the claims to anyone other than the person that paid the prior fuel excise tax to the IRS.   

Treasury and IRS welcome public comments

The notice of proposed rulemaking invites comments and requests for a public hearing on the proposed regulations.

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

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Issue Number: Tax Tip 2026-35

When and how to amend a tax return

Taxpayers who discover an error after filing a federal tax return may need to file an amended return. There are some instances where an amended return isn’t required such as when the IRS corrects errors during processing or requests missing forms or schedules separately.

Reasons to file an amended return
If there are changes to key items on the original return, including:

• Filing status
• Income
• Deductions
• Credits
• Dependents
• Tax liability

Taxpayers can use the Should I file an amended return? tool within the IRS Interactive Tax Assistant to help decide if they should file an amended return to correct an error or make other changes if they already filed.

Time limits
To claim a refund, an amended return must generally be filed within:

• Three years from the date the original return was filed, or
• Two years from the date the tax was paid, whichever is later

If the original return was filed early, the three-year period begins from the April tax deadline. Special rules apply when there are net operating losses, foreign tax credits, bad debts or other issues. Additionally, taxpayers in disaster relief situations, combat zone service, have bad debts, foreign tax credits, or loss or credit carrybacks, may have more time to file an amended return.

How to file an amended return
Taxpayers must file Form 1040-X, Amended U.S. Individual Income Tax Return. When filing, they should:

• Submit a corrected Form 1040, 1040-SR, or 1040-NR for the applicable tax year
• Attach any supporting documents and updated forms or schedules

Refunds and payments
For tax years 2021 and later, taxpayers may request direct deposit of refunds when filing electronically. If additional tax is owed, payment should be submitted with the amended return. The amended return replaces the original return, and the IRS will calculate any applicable penalties or interest if filed after the due date.

Status of amended return
Taxpayers can check the status of an amended return approximately three weeks after it’s submitted. It generally takes 8 to 12 weeks for it to be processed. However, in some cases, processing could take up to 16 weeks.

State tax considerations
Changes to a federal return may affect a taxpayer’s state tax liability. Taxpayers should contact their state tax agency for guidance and should not attach state returns to the federal amended return.

More information

• Instructions for Form 1040-X
• Amended return frequently asked questions

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