Tag: Tax and IRS News

Issue Number:    IR-2026-70

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IRS releases new look-back interest calculator for long-term contracts

IR-2026-70, May 29, 2026 

WASHINGTON — The Internal Revenue Service today announced the release of a new calculator to help businesses working on large, multi-year construction or manufacturing projects more easily figure interest related to those contracts.

“The IRS is focused on improving and enhancing how we serve taxpayers,” said IRS Chief Executive Officer Frank J. Bisignano. “We are transforming the IRS into a digital-first agency that provides the best possible experience for taxpayers, and tools like this calculator are an important step in that effort.”

The Excel-based Percentage-of-Completion Method (PCM) Look-Back Interest Calculator supports calculations required for Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts.

Tax professionals including certified public accountants, enrolled agents, and other tax preparers working with long-term construction and manufacturing contracts may find the calculator useful when computing look-back interest. Practitioners should review the calculator output carefully, consider each taxpayer’s specific circumstances, and ensure compliance.

The look-back interest is determined using a three-step process:

1. Hypothetically reallocating income to prior years based on actual revenues and costs

2. Computing the hypothetical overpayment or underpayment of tax, and

3. Calculating interest on the underpayment or overpayment of tax.

The calculator is designed to assist with the interest computation step by providing a structured framework to perform the computations.

However, the IRS emphasizes that using the calculator does not guarantee compliance with the law and does not replace authoritative guidance, as the tool does not address all fact patterns or complexities associated with look-back interest calculations. Taxpayers should therefore ensure the calculations agree with applicable authorities, including I.R.C. Section 460 and Treasury Regulations Section 1.460-6.

Taxpayers and practitioners may submit feedback about the calculator, by emailing Stakeholder Liaison and including “Look-Back Interest Workbook Feedback” in the subject line.

More information including detailed instructions for completing Form 8697 is available on IRS.gov.

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Issue Number:  IR-2026-69

Inside This Issue

Treasury, IRS issue Section 892 proposed regulations to provide grandfathering protection and transitional relief to sovereign investors

IR-2026-69, May 29, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued additional guidance addressing the applicability dates of recent proposed regulations under Section 892 of the Internal Revenue Code, which exempts foreign governments, including sovereign wealth funds, from tax on certain income derived from passive U.S. investments. This additional guidance provides grandfathering protection and transitional relief to foreign governments investing in the United States.

“President Trump’s economic policies continue to attract trillions of dollars in investment into the United States. Treasury and the IRS conducted thorough reviews of taxpayer and stakeholder comments on proposed technical U.S. tax rules, which informed the release of additional guidance to provide certainty on the treatment of current investments and transitional relief to sovereign investors,” said Treasury Secretary Scott Bessent. “As final regulations continue to develop, we will evaluate feedback to ensure that they strengthen the American economy, uphold established market practices, and maintain a stable environment for existing and future sovereign wealth fund investment.”

“In response to comments on the recent proposed regulations, the IRS heard the concerns of many taxpayers and decided to provide transitional relief,” said IRS Chief Executive Officer Frank J. Bisignano. “With these changes, the IRS aims to preserve established market practices, drive domestic economic growth and support current and future sovereign wealth fund investment in the United States.”

Modification to the 2025 proposed regulations

On Dec. 15, 2025, Treasury and the IRS issued proposed regulations under Section 892, clarifying when an acquisition of debt by a foreign government is commercial activity and when a foreign government has effective control of an entity engaged in commercial activities, in which cases the exemption does not apply.

After taking stakeholder comments into consideration, Treasury and the IRS introduce a two-part approach in today’s guidance providing both grandfathering protection and transitional relief to sovereign investors before these proposed rules become final:

• Grandfathering rule: it proposes new applicability dates to ensure that existing foreign government interests would not be subject to the final regulations.
• Transition period: a foreign government has at least 90 days after the publication date or until the start of the first taxable year after the publication date to transition to the final regulations.

Treasury and the IRS continue to consider comments from interested parties on all aspects of the proposed regulations. Instructions for submitting comments are included in today’s guidance.

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Issue Number:    IR-2026-68

Inside This Issue

Taxpayers can now view and submit Trump Account elections in their IRS Individual Account

IR-2026-68, May 28, 2026

WASHINGTON — The Internal Revenue Service today announced new features in IRS Individual Accounts that allow taxpayers to view and submit Trump Account elections, making it easier to invest in these tax-advantaged accounts.

Through IRS Individual Account, taxpayers can securely access their tax information and complete common tasks online, including:

• View the latest submission status of their Form 4547, Trump Account Election(s), including next steps.
• Submit Form 4547, Trump Account Election(s), electronically.

“These new features reflect our continued focus on transforming the IRS into a digital-first agency that delivers a faster, more seamless experience for taxpayers and provides a new tax-advantaged investment account for children to save for college, retirement, and building generational wealth,” said IRS Chief Executive Officer Frank J. Bisignano. “By expanding the IRS Individual Account to include this new status, we are providing taxpayers with this tool in addition to features for managing their tax accounts, tracking important transactions, and completing key actions quickly and securely.”

Taxpayers benefit from greater transparency through real-time visibility into the Trump Account election process. Electronic submissions also improve accuracy, speed up processing times, and reduce delays associated with paper forms.

Trump Account election

Through the One, Big, Beautiful Bill, enacted on July 4, 2025, Trump Accounts allow parents, guardians, and other authorized individuals to establish a new type of individual retirement account for their children.

An account can be established for a child who has not reached age 18 by the end of the calendar year in which the election is made and who has a valid Social Security number.

A one-time $1,000 pilot program contribution from the Department of the Treasury is available for eligible children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens with a valid Social Security number. The IRS continues to provide updates and additional information about the tax benefits under the One, Big, Beautiful Bill. For details, see One, Big, Beautiful Bill Provisions on IRS.gov.

For more information about Trump Accounts, visit trumpaccounts.gov.

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Issue Number: Tax Tip 2026-44

IRS verified is the way to go when it comes to social media and e-News services

Social media can be a quick and easy way to get tax-related updates, especially with the many updates from the One, Big, Beautiful Bill. But not all online tax advice is accurate. Scammers and misinformation are common on social media. That’s why it’s important for taxpayers to follow official IRS social media accounts and subscribe to e-News updates, for the most reliable information.

IRS social media platforms
Visit IRS.gov to get direct links to IRS verified social media accounts. IRS has accounts on:

• X – Tax-related information for individuals, businesses, and tax professionals. A special IRS X handle, @IRStaxsecurity, shares information to help people avoid common scams
• Facebook – Tax information and event announcements for a general audience
• Instagram − Taxpayer-friendly information on a variety of topics such as tax law changes, reminders and scam info
• YouTube − Short videos on specific tax topics for individual taxpayers, tax professionals and small businesses. Webinars are also available to explain more complex tax topics.
• LinkedIn – Key agency communications including job announcements

The IRS never contacts taxpayers on social media to ask for their personal or financial information. Taxpayers should be aware scammers may pose as the IRS to steal a taxpayer’s identity or defraud them. To stay informed, be sure to follow, like and subscribe.

Additionally, even though filing season has wrapped up, there’s a lot of tax related misinformation on social media. Don’t be tempted by these viral “tax hacks” that often encourage taxpayers to file returns with false information or claim credits they don’t qualify for.

Sign up for automatic email updates
The IRS e-News subscription service sends tax information by email for many different audiences, including:

• IRS Outreach Connection − Up-to-date materials for tax professionals and partner groups inside and outside the tax community. Subscribers can easily share the material with their clients or members through email, social media and the web
• IRS Tax Tips – Tips in plain language on a wide range of general interest tax topics for taxpayers
• IRS Newswire − News releases on tax issues from breaking news to details on legal guidance
• IRS News in Spanish – Noticias del IRS en Español − IRS news releases, tax tips and updates in Spanish
• e-News for Small Businesses – Tax information for small businesses and self-employed individuals
• e-News for Tax Professionals – A roundup of news releases and legal guidance for tax professionals

Subscribe to IRS Tax Tips

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Issue Number:    IR-2026-67

Inside This Issue

IRS to offer Saturday hours at Taxpayer Assistance Centers May 30

IR-2026-67, May 27, 2026

WASHINGTON — The Internal Revenue Service today announced it will offer Saturday hours at select Taxpayer Assistance Centers on May 30.

TACs will be open from 9 a.m. to 4 p.m. to provide in-person assistance on a range of tax issues.

During this one-day event, TACs in multiple states, the District of Columbia, and Puerto Rico will offer many of their regular services. The IRS encourages taxpayers to visit IRS.gov/SaturdayHours ahead of time to confirm participating locations and available services before heading to an office.

TACs will offer most of their typical services during these hours. However, they will not accept cash payments. The IRS plans to continue offering these Saturday service opportunities through June.

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