Tag: Tax and IRS News

Issue Number: 2026-49

Written Information Security Plans are essential for tax pros

A Written Information Security Plan – or WISP – is just one tool for tax professionals to protect their client’s data, and it’s required by law. The IRS and the Security Summit partners have created an easy sample guide that tax pros can use when making their own WISP. The Security Summit is a public-private partnership made up of representatives from the IRS, state tax administrators, tax software companies, tax professionals, and the larger tax community that helps protect taxpayers from identity theft.

Create a WISP
A WISP protects client information most effectively when tailored to the size, scope, complexity and sensitivity of the customer data it handles. A WISP should focus on:

• Employee training and management
• Information systems
• Detecting and managing system failures

WISP requirements
As a part of their security plan, each tax professional needs to:

• Designate one or more employees to coordinate its information security program
• Evaluate the effectiveness of the current safeguards for controlling those risks
• Identify and assess risks to customer information in each relevant area of the company’s operation
• Design and implement a safeguards program and regularly monitor and test it
• Contract a service provider that maintains safeguards and handling of customer information

Maintain and update
The best plans require maintenance and assessment. Here are some tips to keep a WISP updated and relevant:

• Once completed, keep the plan in an easy-to-read format such as a PDF or Word document
• Store a digital copy, in the event of a natural disaster or emergency
• Regularly review and update any security plan, along with adjusting the plan to accommodate changes to the size, scope and complexity of a tax professional’s business
• It is also recommended to create a data theft response plan and report any ID theft

More information

• Publication 5709, How to Create a Written Information Security Plan for Data Safety
• Publication 5293, Data Security Resource Guide for Tax Professionals

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Issue Number:  2026-13

Inside This Issue

• Majority of states join new Federal Scholarship Tax Credit Program
• IRS and Security Summit announce new framework to combat fraud
• Fiscal Year 2025 Data Book now available
• Treasury and IRS move forward on executive compensation excise tax
• Other tax news

    Majority of states join new Federal Scholarship Tax Credit Program

A total of 27 states have joined the Federal Scholarship Tax Credit (FSTC) program created under the One, Big, Beautiful Bill. Starting in 2027, eligible taxpayers can claim a federal tax credit for up to $1,700 for qualified contributions to Scholarship Granting Organizations (SGOs) that fund scholarships for K-12 education expenses and services.

To claim the credit, taxpayers must contribute to an SGO located in a state that participates in the FSTC program and submits a list of qualified SGOs.

Visit Federal Scholarship Tax Credit at IRS.gov for a complete list of states that have joined the program and to read the most current information.

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    IRS and Security Summit announce new framework to combat fraud

The IRS and Security Summit partners announced a new framework to protect taxpayers from fraud. The updated structure strengthens protections against tax-related identity theft and fraud. It also enhances information sharing with the IRS, state tax agencies and the tax professional community. To help improve early detection of suspicious activity, five specialized work groups will focus on:

• Pre-filing early identification
• Forecasting emerging schemes and threats
• Preventing fraud
• Detecting fraud and intelligence sharing
• Coordinated responses to security incidents

For additional information, view Security Summit at IRS.gov.

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    Fiscal Year 2025 Data Book now available

The IRS Data Book highlights the agency’s activities during fiscal year 2025.

Activities highlighted include:

• Returns filed: 271.4 million federal tax returns processed
• Taxpayer Service: almost 18.6 million calls answered and nearly 2 million taxpayers assisted by Taxpayer Assistance Centers
• IRS online: nearly 417 million inquiries on “Where’s My Refund?”

Read the news release or view the complete Data Book on IRS.gov for more information.

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    Treasury and IRS move forward on executive compensation excise tax

Treasury and IRS recently announced intent to issue proposed regulations implementing changes made by the One, Big, Beautiful Bill (OBBB) to the excise tax on excessive compensation paid by tax-exempt organizations. OBBB broadened the definition of covered employee of an applicable tax-exempt organization (ATEO).

Businesses and individuals should review notice 2026-36 for clarification on the definition of covered employees and guidance on ATEOs and their related organizations. The news release also contains more details about the proposed regulations.

Public comments on these proposed regulations should be submitted by August 4, 2026, through Regulations.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:

• Put a plan in place for potential disasters
• Important steps for future business owners
• Is that activity just a hobby or a business?

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Issue Number: Tax Tip 2026-48

Don’t delay filing any longer: Several free filing options still available

Taxpayers who requested an extension to file their 2025 return still have free filing options available. Extension filers have until Oct. 15 but are encouraged not to wait.

IRS Free File
IRS Free File lets qualified taxpayers prepare and file federal income tax returns online. Taxpayers with an adjusted gross income of $89,000 or less in 2025, can use guided tax preparation software to file their federal tax return. Using IRS Free File can help taxpayers take advantage of any tax credits they may be eligible for, such as the Earned Income Tax Credit and the Child and Dependent Care Credit.

IRS Free File Fillable Forms
Electronic federal tax forms are available to everyone, regardless of income, with Free File Fillable Forms. People should be comfortable preparing their own tax returns before using these forms.

MilTax
Eligible members of the military community can also file their taxes using MilTax, a free tax resource offered through Military OneSource. Eligible taxpayers can use MilTax to electronically file a federal tax return and up to five state returns for free.

Other e-filing options
Taxpayers can also use commercial software to file their taxes. The return is securely transmitted through an IRS-approved electronic channel and checked for mistakes. If the IRS finds easy-to-fix mistakes, such as a math error or an incorrect Social Security number, the IRS immediately sends it back to the taxpayer to fix it and re-file it. This saves time and prevents a simple mistake from holding up any tax refund.

To find a tax professional who’s qualified to prepare, transmit and process e-filed returns, taxpayers should consult the Authorized IRS e-file Provider database, a nationwide listing of all businesses that participate in the IRS e-file program.

Taxpayers in disaster areas
Extra time to file is granted automatically due to a disaster. Information on the most recent tax relief for disaster situations is available on the IRS website.

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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

UPDATE: link to Federal Scholarship Tax Credit was corrected.

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.

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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

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