Tag: Tax and IRS News

Issue Number: Tax Tip 2026-38

National Small Business Week: Tools for business owners and entrepreneurs

Being a small business owner or entrepreneur can be a heavy lift sometimes. Fortunately, there’re several tools and resources that can help them manage their tax responsibilities efficiently. National Small Business Week 2026, is an opportunity to highlight some of the improvements and technology available to enhance the taxpayer experience.

Business Tax Account
Business Tax Account is a secure, centralized platform that allows authorized users to:

• View tax balances
• Make payments including Offer in Compromise for eligible users
• See payment history
• Download select digital notices
• View eligible transcripts, such as payroll and income
• Request a tax compliance check
• See the business name and address on file with the IRS

BTA recently expanded access to millions more users. The organizational types that can access BTA are sole proprietorships, partnerships, S corporations, C corporations, federal, state, and local governments, Indian tribal governments, and tax-exempt organizations. For more information or to learn about eligibility requirements to use BTA, visit www.irs.gov/businessaccount.

Information Returns Intake System
IRIS is a modernized system that lets taxpayers e-file information returns for tax years 2022 and later as well as file a correction and request automatic extensions.

Digital and mobile-friendly forms
Certain IRS forms are available for taxpayers to easily complete and submit from their computer, cell phone or tablet. This gives taxpayers a safe and fast way to electronically engage with IRS. For forms that require signatures, they need an IRS Individual Account to complete the mobile friendly forms.

IRS Secure Messaging
It’s a way for taxpayers and authorized representatives of a taxpayer/business to directly interact with IRS representatives. Taxpayers can submit electronic documentation quickly and securely and reduce or eliminate the need to call or mail documents. Secure messages can be sent to you by IRS representatives.

More information
Small business and self-employed tax center

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Issue Number: 2026-10

Inside This Issue

• New option for requesting more time after ERC claim disallowance
• IRS issues Whistleblower Alert to help uncover fraud
• Taxpayer Advocacy Panel Annual Report now available
• IRS issues disaster tax relief for Mississippi and Hawaii
• IRS issues annual update to Form 656-B, Offer in Compromise Booklet
• Other tax news

New option for requesting more time after ERC claim disallowance

The IRS recently announced a new, streamlined way for small businesses to extend the period for the IRS and the IRS Independent Office of Appeals to review a response to the disallowance of an Employee Retention Credit claim to avoid refund litigation.

Small businesses can file Form 907, Agreement to Extend the Time to Bring Suit, if they meet both of these conditions:

• Waiting for the IRS to consider their response to the notice of disallowance on Letter 105-C or 106-C
• Have six months or less remaining before their two-year period expires.

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.

Small businesses can also submit Form 907 requesting an extension through the IRS Document Upload Tool by going to IRS.gov/DUTReply and selecting notice ‘CP320B’ from the drop-down menu.

For full details see the news release.

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IRS issues Whistleblower Alert to help uncover fraud

The IRS recently issued Whistleblower Alert asking for more information about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, businesses and individuals. Small businesses should report what they know using Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip.

Whistleblower awards pay up to 30% of the proceeds collected if attributable to the whistleblower’s information.

More information about the Whistleblower Program is available at IRS.gov/Whistleblower and the news release.

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Taxpayer Advocacy Panel Annual Report now available

In its 2025 Annual Report, the Taxpayer Advocacy Panel highlights IRS accomplishments and efforts to improve delivery, communication with taxpayers, reduce taxpayer burden and support continued transformation efforts.

The recommendations focus on:

• Improving taxpayer notices
• Enhancing online tools and digital services
• Streamlining IRS correspondence
• Improving the clarity of IRS tax forms and publications 
• Reinforcing the importance of in-person assistance
• Reducing wait time on IRS toll-free phone lines

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

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IRS issues disaster tax relief for Mississippi and Hawaii

Businesses and individuals in Mississippi affected by the severe winter storm that began on Jan. 23, 2026, now have until June 8, 2026, to file various federal individual and business tax returns and make tax payments.

Businesses and individuals in Hawaii affected by flooding and mudslides due to severe storms that began on March 10, 2026, now have until July 8, 2026, to file various federal individual and business 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 tax relief info for taxpayers affected by a disaster.

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IRS issues annual update to Form 656-B, Offer in Compromise Booklet 

The IRS released its annual update to Form 656-B, Offer in Compromise Booklet. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed.

The booklet includes all the forms small businesses need to file an offer in compromise and includes new information on how to file an offer electronically through an IRS Individual Account. It also leads small businesses and tax professionals through a series of steps to help calculate an appropriate OIC based on assets, income, expenses and future earning potential.

For more information, see the offer in compromise page on IRS.gov.

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Other tax news

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

• IRS updates educational assistance programs FAQs
• VITA and TCE volunteers recognized during National Volunteer Week
• IRS updates frequently asked questions about section 127 educational assistance programs

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Issue Number:  IR-2026-64

Inside This Issue

Apply for a Low Income Taxpayer Clinic grant to serve taxpayers in your community

Grant application period runs May 6 to July 6, 2026

IR-2026-64, May 6, 2026

WASHINGTON — The Low Income Taxpayer Clinic Program today announced it will accept applications for LITC matching grants from all qualified organizations from May 6, 2026, to July 6, 2026. The grant period of performance will be Jan. 1, 2027, through Dec. 31, 2027, and applications from underserved areas will be given special consideration.

The Taxpayer Advocate Service, an independent organization led by National Taxpayer Advocate Erin M. Collins, administers the LITC Program. Although LITCs receive partial funding from the IRS, LITCs and their employees and volunteers operate independently from the IRS.

“Low Income Taxpayer Clinics are essential to ensuring that every taxpayer, regardless of income or language, has access to a fair and just tax system,” Collins said. “These clinics are a lifeline that protect taxpayer rights, ensure fairness, and provide trusted support to those who need it most. I encourage community organizations to apply and join us in expanding this vital work so that every taxpayer, in every community, has access to justice.”

IRS Chief Executive Officer Frank J. Bisignano added, “Low Income Taxpayer Clinics are an important part of the IRS’s overall approach to improving case resolution and protecting taxpayer rights. By helping taxpayers resolve issues earlier, these clinics can reduce burdens for taxpayers and the IRS alike. Expanding taxpayer access to qualified representation helps ensure cases are handled correctly and limits unnecessary escalation.”

LITCs ensure the fairness and integrity of the tax system for taxpayers by:

Providing pro bono representation to assist low-income taxpayers in resolving tax disputes with the IRS.

Educating taxpayers for whom English is a second language about their rights and responsibilities as taxpayers.

Identifying and advocating for issues that impact these taxpayers.

The IRS awards matching grants to qualifying organizations to develop, expand, or maintain an LITC. For every dollar awarded by the IRS, an LITC must provide an equal match. An LITC must also provide services for free or for no more than a nominal fee, except for reimbursement of actual costs incurred.

Applicants may request up to $200,000 for the 2027 grant year. If Congress reduces overall funding for the LITC Program or reduces the per-clinic funding cap amount for fiscal year 2027, the IRS will adjust each grant recipient’s award accordingly.

Applicants must submit grant applications electronically by 11:59 p.m. Eastern Time on July 6, 2026. The funding number is TREAS-GRANTS-042027-001. Send questions about the LITC Program or grant application process to LITCProgramOffice@irs.gov.

Expanded access to reach underserved communities

The LITC Program continues to expand access to clinic services by supporting new clinics and innovative service delivery models designed to reach underserved communities. Special consideration will be given to applicants proposing to serve in Hawaii, Kansas, Montana, West Virginia, and Wisconsin and in underserved counties with limited or no coverage, including the following counties in Florida, Nevada, and South Dakota:

• Florida: Brevard, Citrus, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Indian River, Lafayette, Lake, Madison, Martin, Nassau, Okeechobee, Orange, Osceola, Polk, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, and Volusia.
• Nevada: Carson City, Churchill, Douglas, Elko, Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, Storey, and White Pine.
• South Dakota: Aurora, Beadle, Bennett, Bon Homme, Brookings, Brown, Brule, Buffalo, Butte, Campbell, Charles Mix, Clark, Clay, Codington, Corson, Custer, Davison, Deuel, Dewey, Douglas, Edmunds, Fall River, Faulk, Grant, Gregory, Haakon, Hamlin, Hand, Hanson, Harding, Hughes, Hutchinson, Hyde, Jackson, Jerauld, Jones, Kingsbury, Lake, Lawrence, Lincoln, Lyman, McCook, McPherson, Meade, Mellette, Miner, Minnehaha, Moody, Oglala Lakota, Pennington, Perkins, Potter, Sanborn , Shannon, Spink, Stanley, Sully, Todd, Tripp, Turner, Union, Walworth, Yankton, and Ziebach.

The IRS is particularly interested in applications that address geographic gaps or areas with high compliance activity but limited clinic presence. Priority will be given to established organizations that can extend services into underserved areas, including those using referral models for representation, and organizations with strong community partnerships that can quickly deliver effective ESL education services.

Webinar schedule

The LITC Program Office will host optional webinars to learn more about the LITC Program and the application process. These sessions will provide further information for new applicants or those interested in learning more about the process. Visit the LITC Grants site to register.

• Session One: Application Basics, Tuesday, May 12, 2026, 1-3 p.m. ET.
• Session Two: LITC Grants Portal Overview and Application Considerations, Wednesday, May 13, 2026, 1-3 p.m. ET.
• Session Three: Budget Basics, Tuesday, May 26, 2026, 1-3 p.m. ET.
• Q&A Sessions: Tuesday, June 16, 2026, and June 29, 2026, 1-2 p.m. ET, no formal presentation.

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Issue Number:   IR-2026-63

Inside This Issue

IRS updates conservation easement site; settlement opportunity details forthcoming

IR-2026-63, May 6, 2026

WASHINGTON — The Internal Revenue Service today announces updates to its Conservation Easement site, expanding information on abusive conservation easement transactions, recent court decisions, and warning signs for investors.

“Congress created the conservation easement deduction to encourage genuine preservation, not to subsidize abusive tax shelters,” said IRS Chief Executive Officer Frank J. Bisignano. “The updated information on IRS.gov explains why the IRS continues to challenge these transactions and highlights the serious risks taxpayers face when they are sold inflated tax benefits disguised as conservation.”

The IRS reminds taxpayers that, while properly structured conservation easements can provide important public benefits, promoter-driven transactions are often built on inflated valuations that can lead to disallowed deductions, substantial penalties and other consequences. The updated Conservation Easement site addresses these issues in detail.

The IRS also announces that it will soon release the terms of a time-limited settlement opportunity for eligible taxpayers involved in these transactions. Following that announcement, the IRS will extend settlement offers to eligible partnerships to provide an opportunity to resolve the federal tax consequences of these transactions with certainty.

“The courts have repeatedly rejected abusive conservation easement arrangements, often sustaining major reductions in claimed deductions and significant penalties,” said Acting IRS Chief Counsel Kenneth J. Kies. “Taxpayers and their advisors should carefully review the updated information and the settlement terms when they are announced.”

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Issue Number:  IR-2026-62

Inside This Issue

IRS requests applications for 2027 IRSAC membership

IR-2026-62, May 5, 2026

WASHINGTON — The Internal Revenue Service is accepting applications for the Internal Revenue Service Advisory Council through June 5, 2026.

The IRSAC advises IRS leadership and provides a public forum for discussing key tax administration issues between IRS officials and representatives of the public. The committee operates under the Federal Advisory Committee Act, and includes volunteer members representing a cross-section of tax-related interests. Each year, the IRSAC presents a report to IRS leadership.

The IRS is seeking qualified individuals to serve three-year terms, beginning in January 2027. Applicants should represent the taxpaying public and have experience in areas such as tax preparation for individuals, small businesses and large, multi-national corporations; tax-exempt and government entities; information reporting; and/or taxpayer or consumer advocacy.

Applicants must complete the IRSAC application and submit a resume. Additionally, applicants must provide a one- or two-page statement of interest highlighting recent examples of specific skills and qualifications, including experience in:

• Applying tax law knowledge to resolve complex tax issues.
• Evaluating issues from a broad perspective and effectively communicating recommendations.
• Working with third-party individuals or organizations who interact with the IRS on behalf of taxpayers.
• Supporting online services for tax professionals and user experience design.

Strong critical thinking, strategic planning, and oral and written communication are desirable.

Applicants must submit a tax check waiver form and undergo an IRS practitioner background check. Those deemed “best qualified” will also undergo an FBI fingerprint check. Information on the tax check waiver will be provided upon receipt of the application.

Questions about the IRSAC and the application process can be emailed to publicliaison@irs.gov.

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