Tag: Tax and IRS News

Issue Number:  IR-2026-55

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IRS updates frequently asked questions about section 127 educational assistance programs

IR-2026-55, April 20, 2026

WASHINGTON – The Internal Revenue Service today updated frequently asked questions in Fact Sheet 2026-10 related to educational assistance programs.

An employee’s gross income does not include educational assistance benefits if the benefits are provided under a section 127 educational assistance program and the amounts do not exceed $5,250. Under the One, Big, Beautiful Bill, the amount that may be excluded from gross income is adjusted for increases in the cost of living for taxable years after 2026. For calendar year 2025 and 2026, you won’t have to pay any tax on the first $5,250 of those benefits and your employer should not include those benefits in your wages, tips, and other compensation shown in box 1 of your Form W-2.

These frequently asked questions contain revised information about educational assistance programs generally, including how the rules apply to certain qualified education loans. They also provide updates related to the One, Big, Beautiful Bill amendments and provide a modified sample plan. 

IRS previously issued FS-2024-22 providing answers to frequently asked questions related to educational assistance programs under section 127 of the Internal Revenue Code.

More information about reliance is available.

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Issue Number:  IR-2026-54

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IRS issues Whistleblower Alert, expands efforts to uncover fraud

IR-2026-54, April 17, 2026

WASHINGTON — The Internal Revenue Service today issued a Whistleblower Alert highlighting an area of concern about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses, and urged the public to provide information.

“Whistleblower Alerts are a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of noncompliance,” said IRS Chief Executive Officer Frank J. Bisignano. “We are expanding how we identify potential fraud, and these alerts will help connect us with individuals who can provide credible, timely information.”

The IRS Whistleblower Program offers monetary awards of up to 30% of proceeds collected based on whistleblower-provided information. Whistleblowers are encouraged to report specific, timely, and credible information about noncompliance with tax laws or other laws the IRS is authorized to administer. Whistleblowers should report what they know via Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip.

The IRS Whistleblower Office intends to issue additional Whistleblower Alerts in the future as other high-risk areas emerge.

Learn more about the IRS Whistleblower Program at IRS.gov/Whistleblower.

Report identity theft, tax scams, fraud, and more at IRS.gov/SubmitATip.

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Issue Number: IRS Tax Tip 2026-32

Actions taxpayers should take if they missed April filing and payment deadline 

Taxpayers who missed the April 15 filing deadline should submit their federal tax return as soon as possible. Those who missed the deadline to file and owe taxes should file as soon as possible to avoid penalties and interest.
Requesting an extension allows for additional time to file but not to pay taxes owed. Interest and penalties will continue to accrue on the owed taxes until the balance is paid in full.
Taxpayers who still need to file for the 2025 tax year can use electronic filing options such as IRS Free File, which is available on IRS.gov through Oct. 15, 2026.

File and pay now to limit penalties and interest charges
If a taxpayer can’t afford to pay the full amount of taxes owed, they should still file a tax return and pay as much as possible. The IRS offers options for taxpayers who need help paying their tax bill. For more information, visit the Penalties page on IRS.gov.
Taxpayers may qualify for penalty relief if they have filed and paid timely for the past three years and meet other important requirements. For more information, see the Administrative penalty relief page on IRS.gov.

Online payment options
Individuals can pay taxes owed securely through IRS Online Account, IRS Direct Pay, the Electronic Federal Tax Payment System or by debit or credit card or digital wallet. Taxpayers may also apply online for a payment plan, including installment agreements. The Business Tax Account allows eligible taxpayers and their designated officials to view tax balances, make payments and see payment history.
Those who pay electronically get immediate confirmation after submitting payment. IRS Direct Pay and the EFTPS allow taxpayers to receive payment email notifications. Find additional payment information on the Make a payment page on IRS.gov.

If a refund is owed, consider filing a tax return
There’s no penalty for filing after April 15, if the IRS owes the taxpayer a refund. Taxpayers who choose not to file a tax return because they don’t earn enough to meet the filing requirement may miss out on receiving a refund due to potential refundable tax credits, such as the Earned Income Tax Credit and Child Tax Credit.

Choose a trusted tax professional
Taxpayers who have yet to file a tax return might consider getting help from a tax preparer. The IRS provides resources if they need someone to prepare a tax return. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find tax return preparers with professional certifications recognized by the IRS or who have completed the IRS requirements for the Annual Filing Season Program.

More information
Where’s my refund?

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Issue Number:   IR-2026-53

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IRS launches new online tool to help taxpayers resolve tax debt

IR-2026-53, April 16, 2026

WASHINGTON — The Internal Revenue Service today announced a new online tool to help taxpayers understand and resolve tax debt.

The Tax Debt Help tool provides individuals and businesses with a simple, accessible way to explore payment options and identify next steps based on their situation. The tool is part of the IRS’s broader effort to expand digital services and make it easier for taxpayers to meet their obligations.

“This new Tax Debt Help tool reflects the agency’s commitment to making tax compliance clearer, more accessible, and less intimidating for taxpayers,” said IRS Chief Executive Officer Frank J. Bisignano. “By guiding taxpayers through their options to pay with simple, interactive questions, we’re helping them understand the paths available and take confident next steps. The deployment of this new tool shows the transformation underway at the IRS and the progress the agency has already made to deliver more user-friendly, digital-first services to taxpayers.” 

Helping taxpayers find the right option

The Tax Debt Help tool walks users through a series of straightforward questions about their financial situation and tax debt. Based on taxpayer responses, the tool will guide them to potential payment and resolution options available through the IRS.

These options may include payment plans, temporary delay of collections, or an offer in compromise for those who qualify. By presenting options in a clear, structured format, the tool helps taxpayers make informed decisions about how to resolve their tax debt. 

Designed for simplicity and privacy The tool is designed to be easy to use and accessible to a wide range of taxpayers. It does not require specialized knowledge and can be used at any time.

To protect taxpayer privacy, the tool does not require taxpayers to enter personally identifiable information. Taxpayers can explore available options without providing details such as Social Security numbers, names, or addresses. By expanding self-service options, the IRS is helping taxpayers resolve issues faster while reducing the need for phone calls or in-person visits.   

Additional resources

Taxpayers can find more information using the following resources:

• Get help with tax debt
• Apply online for a payment plan
• Publication 6103, Get Help with Tax Debt 
• Information on payment plans
• Online account for individuals
• Business Tax Account

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Issue Number: IRS Tax Tip 2026-31

Options for taxpayers who need help paying their tax bill

The filing and payment deadline for most 2025 federal tax returns is April 15, 2026. There are exceptions for taxpayers in a disaster area, combat zone or living and working abroad. Taxpayers who can’t pay their tax bill by the deadline shouldn’t panic – the IRS offers a variety of options to help taxpayers meet their obligations.

Those struggling to meet their tax obligation may consider several options to resolve their tax bill. The Tax Debt Help tool on IRS.gov provides individuals and businesses with a simple, accessible way to explore payment options and identify next steps based on their situation. These options include:

Online payment plans
Most individual taxpayers qualify for an online payment plan. The quickest and easiest way to set up a payment plan is through the online payment agreement, available on IRS.gov. Setup fees may apply.

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. This gives a taxpayer up to 180 days to pay their balance in full.
• Long-term payment plan – Also known as a simple plan or installment agreement. This option is available online and to individual taxpayers that owe $50,000 or less in combined tax, penalties and interest. Most taxpayers have up to 10 years to pay off their balance, but the longer the term on the payment plan, the more interest, penalties and fees will add up. Payments may be made using direct debit (automatic bank withdrawal). This eliminates the need to send in a payment each month, saves postage costs and reduces the chance of default.

Once the online application is complete, the taxpayer is notified immediately whether their plan is approved. There’s no paperwork and no need to call, write or visit the IRS.

Other payment options
Anyone who can’t qualify for an online payment plan should consider these options:

• Offer in compromise – Some taxpayers qualify to settle their tax liabilities for less than the total amount owed by submitting an Offer in Compromise. Taxpayers should use the Offer in Compromise Pre-Qualifier tool on IRS.gov to see if they qualify.
• Temporary delay of collection – Taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines that the taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves. Penalties and interest continue to accrue until the full amount is paid.

Taxpayers can get details on these options and more by visiting the Tax Debt Help page or reviewing Topic 202, Tax payment options, on IRS.gov.

Penalty relief to eligible taxpayers
Taxpayers may qualify for penalty relief if they tried to comply with tax laws but are unable to due to circumstances beyond their control.

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