Tag: Tax and IRS News

Issue Number:  2026-14

Inside This Issue

• Business Tax Account users can now download an EIN verification letter
• Electronic Tax Administration Advisory Committee issues 2026 annual report
• National Taxpayer Advocate issues mid-year report to Congress
• IRS issues tax relief for Arizona and Montana
• Other tax news

    Business Tax Account users can now download an EIN verification letter

Business Tax Account users who serve as designated officials can now download an Employer Identification number verification letter by logging into their BTA account. This removes the need to call the IRS and request the letter and waiting for it to come in the mail.

An EIN verification letter or CP 575 is a digital notice that can be taken to a bank or financial institution for verification purposes.

This notice can be used instead of the letter 147c EIN Previously Assigned or the original CP 575 A-J.

For more information, visit Understanding your CP575 notice on IRS.gov.

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    Electronic Tax Administration Advisory Committee issues 2026 annual report

The IRS Electronic Tax Administration Committee 2026 Annual Report with recommendations to Congress and the IRS is now available.

The committee’s IRS recommendations focused on six priority areas:

• Technology and data sharing
• Sustained IRS funding
• AI and human-centered design
• Digital filing and payments
• Tax simplification and outreach
• Fraud prevention and preparer regulation

The committee’s recommendations to Congress include:

• Considering tax simplifications when implementing tax policy goals
• Authority for IRS to regulate non-credentialed tax return preparers
• Predictable funding of the IRS for efficient and effective taxpayer service
• Prioritization of continued technology modernization enhancements

For details or to read the full report, visit irs.gov/etaac.

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    National Taxpayer Advocate issues mid-year report to Congress

The National Taxpayer Advocate Erin M. Collins released the Fiscal Year 2027 Objectives Report to Congress. The report highlighted a successful filing season and implementation of various tax law changes.

The report also covers TAS’s key objectives for the next fiscal year, including:

• Protecting taxpayers’ refund rights
• Reducing processing delays
• Accelerating resolution of identity theft cases
• Reducing paper refund delays
• Simplifying compliance with digital asset reporting rules
• Improving math error notices and refund statute procedures
• Expanding online tools for tax pros.

For details or to read the full report, visit the Taxpayer Advocate Service website.

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    IRS issues tax relief for Arizona and Montana

Below is information about recent disaster related tax relief granted by the IRS.

• Businesses and individuals affected by severe storms and flooding in the San Carlos Apache Tribe between Oct. 10 -13, 2025, now have until Sept. 28, 2026, to file various federal business and individual tax returns and make tax payments.
• Businesses and individuals affected by severe storms and flooding in the Fort Peck Assiniboine and Sioux Tribes in northeastern Montana between Dec. 17 and 18, 2025, now have until Sept. 28, 2026, to file various federal business and individual tax returns and make tax payments.
• Businesses and individuals affected by severe winter storms and straight-line winds the Crow Tribe of Montana in southcentral Montana between Dec. 17-19, 2025, now have until Sept. 28, 2026, to file various federal business and individual tax returns and make tax payments.

The IRS automatically identifies taxpayers located in covered disaster areas and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief.

The Tax relief in disaster situations page on IRS.gov has the most recent info for taxpayers affected by a disaster.

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    Other tax news

The following information may be of interest to individuals and groups in or related to small businesses:

• Fiscal year 2025 Data Book
• IRS and Security Summit partners announce new framework to better protect taxpayers and tax revenue from fraud
• Mid-year is the perfect time for a quick tax check
• Understanding what the right to challenge the IRS’s position and be heard means

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Issue Number: Tax Tip 2026-53

Tips for businesses hiring seasonal or part-time employees

The summer months are a common time for many businesses to seek out seasonal or part-time workers. If they’re hiring help, it’s important to understand tax filing and withholding responsibilities. This can help avoid penalties while staying compliant throughout the year.

Tax withholding rules for seasonal and part-time employees
Seasonal and part-time employees are subject to the same federal income tax withholding, Social Security, and Medicare tax rules as other employees. Employers must withhold and pay employment taxes on wages paid to these workers.

Seasonal employers and Form 941
Seasonal employers generally do not have to file Form 941, Employer’s Quarterly Federal Tax Return, for quarters in which they have no tax liability because no wages were paid.
An employer can let the IRS know they may not file a return for certain quarters by:

• Checking the “seasonal employer” box in Part 3 of every Form 941 filed.
• If this box is checked and at least one taxable return is filed during the year, the IRS generally will not inquire about quarters for which no return was filed.

See Section 12 of Publication 15 for additional details.

Filing Form 943 for agricultural employers
Businesses that employ farm workers should follow the rules in Publication 51, (Circular A), Agricultural Employer’s Tax Guide.

More information

• Small Business Self Employed – Businesses with employees
• Employment taxes
• Publication 15- Employer’s Tax Guide

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Issue Number:  IR-2026-80

Inside This Issue

Treasury, IRS provide safe harbor for certain contributions to Trump Accounts under the Working Families Tax Cuts

IR-2026-80, June 29, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-25 providing a gift tax reporting safe harbor for certain contributions to Trump accounts created under the Working Families Tax Cuts. 

Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements for that year.

“By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules,” said IRS Chief Executive Officer Frank J. Bisignano. “The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”

Sign up for a Trump Account and the pilot program

Parents, guardians, and other authorized individuals, can use IRS Individual Online Account to complete Form 4547, Trump Account Election(s) to elect to open the initial Trump account for a child with a Social Security number if the election to open the initial Trump account is made before the calendar year in which the child turns age 18. In addition, if that child is a U.S. citizen born in 2025 through 2028, the parent or other individual who qualifies to do so may check a box on Form 4547 to elect a $1,000 pilot program contribution to the child’s Trump account.

Visit trumpaccounts.gov for more information on Trump Accounts. For more information on the provisions of the new legislation, see Working Families Tax Cuts Provisions on IRS.gov.

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Issue Number: Tax Tip 2026-52

Mid-year is the perfect time for a quick tax check 

It’s halfway through the year, which is a great time for taxpayers to do a quick check to make sure they’re on a smooth track to next filing season. Here are some tips:

Keep good tax records. Taxpayers should keep all important tax records in one place. They can use electronic recordkeeping software or clearly labeled paper folders and add documents as they receive them. Organized records make tax return preparation easier and may help taxpayers identify deductions or credits they might otherwise miss.

Identify filing status. A taxpayer’s filing status affects their tax requirements, deductions, credits, and tax liability. Life changes such as marriage, divorce, birth, or death may affect filing status and eligibility for certain tax benefits. Taxpayers can use the IRS’s Interactive Tax Assistant, What is my filing status? to get help choosing the best one for their tax situation.

Understand adjusted gross income. AGI is income from all sources minus any adjustments. A higher AGI generally means a higher tax rate. Tax planning may help lower AGI and reduce taxes owed.

Check withholding. Taxpayers need to pay their tax as they receive their income, and they do this through 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 now 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.

Make address and name changes. Taxpayers should promptly report address changes to the USPS, employers, and the IRS using Form 8822, Change of Address. They should also report name changes to the Social Security Administration. Keeping this information current can make filing a tax return easier.

Save for retirement. Saving for retirement can also lower a taxpayer’s AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income.

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