Category: Newsletters – IRS – Company

Issue Number:  IR-2026-58

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IRS announces new option for certain taxpayers to request more time after ERC claim disallowance

IR-2026-58, April 27, 2026

WASHINGTON — The Internal Revenue Service today announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Credit (ERC) claim to avoid refund litigation.

When an ERC claim is disallowed by the IRS, taxpayers receive a Letter 105-C or 106-C. These affected taxpayers generally have two years from the date of that letter to resolve their claim administratively or to file a refund suit in Federal court if they disagree with the IRS’s decision. Taxpayers may protest the IRS’s disallowance with the IRS Independent Office of Appeals, but that does not extend this statutory two-year deadline.

After the two-year period ends, the IRS cannot issue a refund, even if it later decides in the taxpayer’s favor after reviewing the disallowance. The deadline varies depending on the date of the original 105-C or 106-C letter.

The IRS is aware that some taxpayers are approaching the end of this two-year period and is providing a new way for taxpayers to request more time to resolve their claims administratively or to file suit through the filing of Form 907, Agreement to Extend the Time to Bring Suit, if they meet both of the following conditions:

• The taxpayer is waiting for the IRS to consider their response to the notice of disallowance on Letter 105-C or 106-C, and
• The taxpayer has six months or less remaining before their two-year period expires.

Requesting more time to file suit or resolve claim administratively

Under current law, the IRS and a taxpayer can agree in writing to extend the time to file suit, if both parties sign Form 907 before the two-year period expires. A fully executed Form 907 gives the IRS more time to consider the disallowance administratively and gives the taxpayer more time to file suit, if needed.

Starting today, taxpayers with six months or less remaining in their time to file suit, and who are waiting for the IRS to consider their disallowance response to Letter 105-C or 106-C, may submit Form 907 requesting an extension via the IRS Document Upload Tool by going to IRS.gov/DUTReply and selecting notice ‘CP320B’ from the drop-down menu. Properly executed Forms 907 will be given due consideration by the IRS, and taxpayers will be informed in writing whether the IRS has agreed to the extension. Countersigned Forms 907 will be sent to taxpayers or their authorized representative. The IRS will not consider, as part of this tool, Forms 907 submitted for disallowances unrelated to Letters 105-C or 106-C, and taxpayers should submit these requests through the IRS’s normal processes.

The IRS is sending Notice CP320B to taxpayers identified as eligible for this new Form 907 submission method. Step-by-step instructions are available at IRS.gov/CP320B.

Taxpayers may be eligible to extend the time even if they don’t receive Notice CP320B. Step-by-step instructions are available at IRS.gov/erc105c and IRS.gov/erc106c for those who believe they meet the above-stated criteria, even if they did not receive a letter.

Taxpayers who received an ERC claim disallowance notice and are unsure of their deadline should review the information provided on IRS.gov: Understanding Letter 105-C, Disallowance of the Employee Retention Credit or Letter 106-C, Claim Partially Disallowed. Those with additional questions should call the phone number listed on their most recent IRS notice.

The IRS will continue processing ERC claims and appeals in accordance with its established procedures. This new streamlined process is intended to provide taxpayers with clear, timely information about their rights and available options, and thereby observing taxpayers’ rights.

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Issue Number:  IR-2026-57

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Taxpayer Advocacy Panel issues 2025 Annual Report highlighting taxpayer-focused recommendations to improve tax administration

IR-2026-57, April 24, 2026

WASHINGTON — The Taxpayer Advocacy Panel today released its 2025 Annual Report highlighting accomplishments and ongoing efforts to strengthen Internal Revenue Service delivery, improve communications with taxpayers, reduce taxpayer burden, and support continued modernization of tax administration.

“In 2025, TAP members dedicated hundreds of volunteer hours to grassroots outreach, listening directly to taxpayers across the country and abroad and elevating the real-world challenges they face,” said National Taxpayer Advocate Erin M. Collins. “Their efforts resulted in nearly 200 recommendations to improve IRS service and tax administration. By partnering with the IRS to advance practical, taxpayer-focused solutions, TAP plays a critical role in strengthening taxpayer rights and making tax administration more transparent, accessible, and responsive. I extend my sincere appreciation to our TAP volunteers for their exceptional commitment and the meaningful impact reflected in this Annual Report.”

In 2025, the TAP project committees submitted 20 project referrals to the IRS, including 188 recommendations aimed at improving IRS operations and enhancing the experience for taxpayers nationwide.

Key recommendations outlined in the report

The six principal project committees presented a series of recommendations to the IRS that include:

• Making taxpayer notices clear, accessible, and easier for taxpayers to understand and act on.
• Enhancing IRS online tools and digital services to expand secure self-service options for taxpayers and improve the user experience within the IRS Online Account and tax transcript applications.
• Streamlining IRS correspondence processes and strengthening Individual Taxpayer Identification Number online tools to reduce processing delays, minimize call volume, and improve response times.
• Improving the clarity of IRS tax forms and publications, including recommending updated guidance on Form 8821, Tax Information Authorization, regarding disclosure authority and revocation procedures.
• Reinforcing the importance of in-person assistance to ensure taxpayers continue to have access to essential support services.
• Reducing wait times on IRS toll-free telephone lines by expanding secure chatbot and live chat capabilities to provide timely, personalized, and accessible customer service.

The report also recognizes the outgoing and incoming National TAP Chairs for their dedicated service and leadership:

• Michelle Brookens – 2025 National TAP Chair
• Philip Hwang – 2026 National TAP Chair

Historically, TAP’s recommendations have contributed to meaningful improvements in IRS processes, forms, notices, and procedures that directly affect taxpayers. The panel anticipates that the 2025 recommendations will similarly support enhancements to taxpayer service and tax administration.

The full 2025 TAP Annual Report is available to download on ImproveIRS.org.

About TAP

TAP is a Federal Advisory Committee that provides citizens with a unique opportunity to take part in the federal tax administration system. TAP members comprise citizen volunteers from across the country, and  an international member. These volunteers represent the broad geographic and varied demographic backgrounds of the U.S. taxpayer population they serve. As everyday taxpayers, TAP members provide an independent, grassroots perspective on IRS services and procedures, offering insights that complement, but are distinct from, those of tax professionals and industry organizations.

Oversight and program support for TAP is provided by the Taxpayer Advocate Service, an independent organization within the IRS led by the National Taxpayer Advocate. TAS helps taxpayers with tax problems they cannot resolve with the IRS and makes administrative and legislative recommendations to mitigate systemic problems in tax administration.

For additional information about TAP:

• Visit ImproveIRS.org or
• Email TAP staff at taxpayer.advocacy.panel@irs.gov.  

For media inquiries, contact TAS Media Relations at TAS.media@irs.gov or call 202-317-6802.

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Issue Number:   IR-2026-56

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IRS recognizes thousands of VITA and TCE volunteers during National Volunteer Week: April 19-25

IR-2026-56, April 24, 2026

WASHINGTON — During National Volunteer Week, the Internal Revenue Service recognizes the tens of thousands of volunteers who donate their time to serve their communities and the nation by participating in the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

These volunteers are essential in providing no-cost tax preparation services for low- to moderate-income individuals across the country. For over 50 years, VITA and TCE volunteers have partnered with the IRS to not only help taxpayers file accurate and reliable returns for free, but to educate them on important credits and applicable tax law.

“This filing season, thousands of VITA and TCE volunteers demonstrated their commitment to serving taxpayers who needed support the most,” said IRS CEO Frank J. Bisignano. “Volunteers assisted members of the military, those in rural communities, senior citizens and many more. Their dedication furthers the IRS’s mission and reminds us that serving others creates a lasting impact, not just during National Volunteer Week, but throughout the year.”

In 2026, VITA and TCE volunteers filed over 2.8 million tax returns at more than 9,000 VITA/TCE sites. These efforts resulted in over $3.37 billion in refunds. Over 71,000 volunteers also played a critical role in spreading awareness of the Earned Income Tax Credit this year at over 100 EITC Awareness Day events across the country.

National Volunteer Week was established in 1974 when former President Richard Nixon signed Proclamation 4288.

Does your organization want to be a part of the VITA/TCE mission? You can make a difference in your community by applying for a VITA and TCE grant beginning May 1, 2026. Visit IRS.gov for more information.

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Issue Number:  IR-2026-56

Inside This Issue

IRS hosting free webinar to share last-minute tips for the filing season

IR-2026-51, April 13, 2026

WASHINGTON — The Internal Revenue Service today announced it will be hosting a free 30-minute webinar for taxpayers and tax professionals to provide last-minute tips for filing season on Tuesday, April 14, at 1 p.m. Eastern time.

The IRS continues to work to ensure a successful filing season for America’s taxpayers and this webinar will offer information that last minute filers can use to file and pay on time. Highlights from the 2026 filing season, through April 3:

• The average refund amount is $3,462.
• About 98 percent of tax refunds have been issued electronically via direct deposit, out of a total of about 70 million refunds issued.
• Over 98 percent of returns were filed electronically, out of a total of about 100 million individual federal income tax returns.
• The average refund is up by more than 11 percent with total refunds now at about $242 billion.

Webinar for Taxpayers

There will be IRS experts providing details on multiple topics. Helping taxpayers is especially important this filing season to ensure they are aware of the taxpayer-favorable changes enacted last year as part of the One, Big, Beautiful Bill. American families are seeing major financial benefits, in the form of higher refunds, as a result of several signature provisions of this landmark legislation, including:

• No tax on tips
• No tax on overtime
• No tax on car loan interest
• A special tax deduction for seniors, and
• Permanent extension of several existing tax provisions that had been set to expire

The IRS encourages anyone who has not filed a federal tax return yet to electronically file and choose direct deposit if they are due a refund. IRS Free File is available to most taxpayers, but there are also other options like Volunteer Income Tax Assistance (VITA) and Tax Counseling for Elderly (TCE).

The IRS provides assistance to taxpayers through multiple channels: online, over the phone or in person. Taxpayer Assistance Centers remain open with extended hours through the end of this month. IRS.gov offers a wide range of resources.

Please be advised that a Continuing Education (CE) credit will not be offered for this webinar, as this session is designed to provide general informational guidance for the public.

Registration for Last-Minute Tips

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Issue Number: IRS Tax Tip 2026-34

Every taxpayer has the right to quality service from the IRS

All taxpayers have the right to quality service. This is one of 10 core rights within the Taxpayer Bill of Rights. Let’s define what this means for taxpayers.

Right to quality service
Taxpayers have the right to:

• Receive prompt, courteous and professional assistance from the IRS
• Be spoken to in a way they can easily understand
• Receive clear and easily understandable communications from the IRS
• Speak to a supervisor about inadequate service

What taxpayers can expect
When taxpayers interact with the IRS, they can expect IRS representatives to:

• Listen objectively. They will consider all relevant information prior to giving the taxpayer an answer.
• Answer questions promptly, accurately and thoroughly
• Give the taxpayer information on recourse options and applicable appeal rights
• Treat people with courtesy
• Generally, only contact taxpayers between 8 a.m. and 9 p.m.
• Provide the taxpayer with information about how to get help from the Taxpayer Advocate Service in all statutory notices of deficiency
• Provide information about options for legal help if someone is eligible for assistance from a Low-Income Taxpayer Clinic

IRS representatives will not:

• Contact the taxpayer’s employer if they know the employer doesn’t allow such contact
• Make aggressive phone calls that threaten arrest or prison time

Taxpayers can find answers to most tax questions on IRS.gov. Taxpayers can also contact the IRS directly by calling the number on the top right corner of all notices and letters.

More information

• Taxpayer Advocate Service
• Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund
• Forms and publications about your appeal rights
• Publication 594, The IRS Collection Process

Subscribe to IRS Tax Tips

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