Announcement 2026-07 provides that IRS and the Treasury Department anticipate that certain portions of future final regulations relating to required minimum distributions under section 401(a)(9) will apply for the distribution calendar year that begins no earlier than 6 months after the date that final regulations are issued in the Federal Register. In the interim, the Announcement states that taxpayers must apply a reasonable good-faith interpretation of the statutory provisions underlying the regulations.

Announcement 2026-07 will be in IRB:   2026-11, dated: March 9, 2026.

Mistakes and errors can happen, but most are easily avoidable when it comes to filing federal income tax returns. Taxpayers are encouraged to review their entire return before filing to make sure it is correct and complete. This is the case even if someone else prepared it, because ultimately, it’s the taxpayer’s responsibility to ensure the information on the return is accurate.

Here are just a few common errors that can be avoided:

• Filing too soon: Most tax documents should have been received by now, but taxpayers need to be sure they have all their tax reporting documents before filing. The fastest and easiest way for taxpayers to view their tax records is by logging on to their IRS Online Account.
• Incorrect filing status: Be sure to select only one filing status and make sure it is the correct one. What is my filing status? can help with the determination.
• Inaccurate information: Taxpayers should carefully when entering any wages, dividends, bank interest and other income they receive to make sure they report the correct amounts.
• Misspelled names or missing social security numbers: All names and taxpayer identification numbers must be provided for everyone listed on the return. Social security numbers and names should be entered exactly as they appear on each person’s Social Security card. If there have been any name changes, be sure to contact the Social Security Administration at SSA.gov or call them at 800-772-1213.
• Credits and deductions: There are several new deductions and changes to certain credits for 2026. Taxpayers should make sure any deductions and credits are calculated correctly, and necessary documentation is provided.
• Unsigned return: An unsigned return is considered invalid. If it’s a joint return, both must sign and date. However, exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney.
• Incorrect bank account information: Taxpayers who are owed a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax return.

Submitting tax returns electronically ensures greater accuracy. The e-file system often detects common errors and rejects a tax return, sending it back to the taxpayer for correction. This could reduce or eliminate delays in processing a federal tax return. For information on filing, see File your tax return.

Notice 2026-7 provides interim guidance regarding the application of the corporate alternative minimum tax (CAMT) under §§ 55, 56A, and 59. Section 3 of this notice modifies the interim guidance provided in section 4 of Notice 2025-49 and addresses an adjustment to adjusted financial statement income (AFSI) for tax deductible repairs with respect to section 168 property.  Section 4 of this notice modifies the interim guidance provided in section 9 of Notice 2025-49 and addresses an adjustment to AFSI for § 197 amortization attributable to certain intangibles.  Section 5 of this notice addresses an adjustment to AFSI for amortization of domestic research or experimental expenditures.  Section 6 of this notice addresses an adjustment to AFSI for certain production costs attributable to film, television, live theatrical, and sound recording productions.  Section 7 of this notice addresses an adjustment to AFSI for certain low acquisition cost tangible property treated as materials and supplies.  Section 8 of this notice clarifies and modifies the interim guidance for financially troubled companies provided in section 4 of Notice 2025-46.  Section 9 of this notice modifies the anti-abuse rule in proposed § 1.56A-4 that would apply to certain covered asset transactions.  Section 10 of this notice addresses certain CAMT consequences of transactions involving intangible property subject to § 367(d).  Section 11 of this notice provides the applicability dates and requirements for reliance. 

WILL BE IN IRB: 2026-11             DATED: March 9, 2026

There are several new tax deductions that have been introduced for the 2026 filing season. A deduction is an amount subtracted from the taxpayer’s income when filing. Deductions lower the taxable income resulting in lowering the federal income tax obligation.

New deductions for 2026 filing season

• Seniors age 65 and older may be eligible to claim an additional $6,000 deduction
• Tipped workers may be eligible to deduct up to $25,000 for qualified tips
• Individuals may be eligible to deduct up to $12,500 ($25,000 for joint filers) for qualified overtime
• Individuals may deduct up to $10,000 in qualified passenger vehicle loan interest

All new or enhanced deductions are available for both itemizing and non-itemizing taxpayers. Each of these deductions phase out based on income level for individual and joint filers and have specific eligibility requirements. This information can be found on the One, Big, Beautiful Bill provisions page for individuals and workers.

Standard deduction amounts for tax year 2025
The standard deduction is a flat amount based on federal income tax filing status (single, married filing separately, married filing jointly, head of household, or qualifying surviving spouse). The IRS adjusts the standard deduction annually for inflation.

• $15,750 for single or married filing separately
• $31,500 for married couples filing jointly or qualifying surviving spouse
• $23,625 for head of household

Most people take the standard deduction. However, some may not be eligible to take it or if deductible expenses and losses are more than the standard deduction, taxpayers have the option to itemize deductions. Itemized deductions are subject to certain dollar limitations. They can include amounts paid during the taxable year for: state and local income or sales taxes, real property taxes, personal property taxes, mortgage interest, disaster losses, gifts to charities, certain gambling losses, and medical and dental expenses.

Taxpayers are reminded that they need documents to show expenses or losses they want to deduct. Tax software will calculate deductions and enter them in the right forms. Taxpayers who earned less than $89,000 in 2025 can use Free File guided tax software to prepare and electronically file their 2025 federal income tax returns for free. All taxpayers can use Free File Fillable Forms regardless of income level. The IRS Interactive Tax Assistant can help a person decide if they're eligible for many popular tax credits and deductions.

IR-2026-20, Feb. 3, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations for domestic producers of clean transportation fuel to determine their eligibility for and calculate the clean fuel production credit under the One, Big, Beautiful Bill. The new law made important changes to what is often referred to as the 45Z credit.

The clean fuel production credit provides businesses an income tax credit for clean transportation fuel produced domestically after Dec. 31, 2024, and sold by Dec. 31, 2029. To claim the credit, taxpayers must be registered with the IRS using Form 637, Application for Registration (For Certain Excise Tax Activities) at the time of production.

The proposed regulations provide guidance on the determination of clean fuel production credits, emissions rates, and certification and registration requirements. They provide further certainty and clarity for taxpayers and address key issues raised by stakeholders.

What’s new under the OBBB

Today’s guidance also proposes rules to implement certain OBBB changes to the clean fuel production credit. OBBB changed the clean fuel production credit to:

• Extend the credit to Dec. 31, 2029;
• Limit feedstocks to those grown or produced in the US, Mexico, or Canada;
• Add prohibited foreign entity restrictions;
• Broaden sale attribution for fuel sold through related intermediaries;
• Eliminate the special rate for sustainable aviation fuel;
• Add an anti-abuse provision to prevent double crediting;
• Prohibit negative emissions rates except for fuels derived from animal manure;
• Require feedstock-specific emissions rates for fuels derived from animal manure; and
• Exclude indirect land use changes from emissions rates.

Treasury and IRS invite public comments

Treasury and IRS welcome comments and requests to speak at the public hearing on these proposed regulations. Commenters are encouraged to use the Federal e-Rulemaking portal to submit comments (indicate “IRS” and “REG-121244-23”). A public hearing has been scheduled as described in the “Comments and Public Hearing” section. Paper submissions should be sent to: CC:PA:01:PR (REG-121244-23), Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. 

For more information, see One, Big, Beautiful Bill Provisions on IRS.gov.

WASHINGTON — The Internal Revenue Service announced today the award of $53 million in Tax Counseling for the Elderly and Volunteer Income Tax Assistance grants to organizations that provide federal tax return preparation at no cost.

This year, the IRS awarded grants to 48 TCE and 315 VITA applicants. The IRS received 479 applications requesting over $79 million in funding.

“These grants ensure that VITA and elderly tax-counseling organizations have sufficient funding to provide assistance to individuals in need at local centers across the nation,” said Chief Executive Officer Frank J. Bisignano. “The IRS recognizes the important work these organizations do and salutes their efforts.”

The TCE program, established in 1978, provides no-cost tax counseling and federal return preparation to individuals who are age 60 or older. Volunteers receive training and technical assistance to help at community locations across the nation.

The VITA program, created in 1969, assists underserved communities, such as low- and moderate-income individuals and limited English proficient taxpayers. VITA grant recipients provide no-cost federal tax return preparation and electronic filing. The grant program helps to expand VITA services to underserved populations.

The IRS maintains partnerships with a wide variety of organizations across the country to develop VITA and TCE programs. Community partners include non-profit agencies, faith-based organizations, community centers and large employers. The IRS provides tax law training, certification and oversight to these organizations, assisting their efforts to prepare accurate returns.

For information on applying for the TCE or VITA programs visit Tax Counseling for the Elderly or IRS VITA Grant Program on IRS.gov. A current list of grant recipients will be available on these pages beginning January 31, 2026. For details on becoming a TCE or VITA volunteer, visit IRS Tax Volunteers.

IR-2026-13, Jan. 27, 2026

WASHINGTON — The Internal Revenue Service today issued frequently asked questions in Fact Sheet 2026-02 to help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernizing Payment To and From America’s Bank Account.

“These FAQs support the Executive Order in its effort to reduce fraud, improve security, lower costs, and make payments to and from the IRS faster and more reliable," IRS Chief Executive Officer Frank J. Bisignano said.

Background

The U.S. Department of the Treasury, in collaboration with the IRS and other federal agencies, is transitioning federal payments to and from the government to electronic methods pursuant to Executive Order 14247, signed March 25, 2025. 

These changes apply to:

• Payments sent by the federal government, including tax refunds, benefits, grants, and vendor or contractor payments; and
• Payments made to the federal government, including tax balances due, fees, penalties, and other payments from individuals, businesses, nonprofit organizations, and state or local partners.

Electronic payments are generally processed faster, cost less to handle, and reduce errors compared to paper payments. Limited exceptions to electronic payment requirements will be available in specific situations, such as those involving hardship and/or legal or procedural requirements.

Filing tax returns is not changing

The Executive Order does not change how taxpayers file their tax returns. Taxpayers will continue to file their returns in the same manner as they have in the past. The change affects how refunds are issued and how payments are made, not how returns are prepared or submitted, beginning with the 2026 filing season. For now, checks and money orders will still be accepted. 

What taxpayers should do now

To prepare for these changes, the IRS encourages taxpayers to:

• Use direct deposit for refunds by providing accurate bank or prepaid debit card information when filing.
• Choose electronic payment options when paying taxes, such as IRS Direct Pay, Electronic Federal Tax Payment System, or other approved methods.
• Review account information to ensure bank details are current and correct.
• Visit IRS.gov to learn about electronic payment options and available resources for taxpayers without a bank account.

For more information about how the IRS is implementing the Executive Order, visit Modernizing Payments To and From America’s Bank Account on IRS.gov.

One, Big, Beautiful Bill: How to take advantage of no tax on tips and overtime

The One, Big, Beautiful Bill has a significant effect on federal taxes, credits and deductions. Millions of taxpayers reported earning tips and overtime on their tax returns, many of them are veterans and people working in lower wage jobs. This relief will impact most of these taxpayers and they can start taking advantage of the deduction this filing season.

No tax on tips
Employees and self-employed individuals may deduct qualified tips received in certain qualified occupations, such as wait staff, bartenders, salon workers, personal trainers, gig economy workers, and many more who customarily and regularly receive tips might qualify.

Even better, tips earned on or before December 31, 2024, and are reported on a Form W-2, Form 1099, or other statement furnished to the individual or reported directly by the individual on Form 4137 can be deducted.

• “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing
• Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income, without regard to this deduction, from the trade or business in which the tips were earned
• The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)

To see examples of how “no tax on tips” is calculated, taxpayers should review this news release.

No Tax on Overtime
Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay, generally, the “half” portion of “time-and-a-half” compensation, that’s required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

• Maximum annual deduction is $12,500 ($25,000 for joint filers)
• Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
• The deduction is available for both itemizing and non-itemizing taxpayers

Inside This Issue

1. New Tax Benefits for Health Savings Account Participants
2. 2025 Nationwide Tax Forum Online: Distributions from Retirement Plans and IRAs
3. New Contact Information for Collection Advisory Offices
4. Technical Guidance

1.  New Tax Benefits for Health Savings Account Participants

The Department of the Treasury and the IRS issued Notice 2026-05 providing guidance on new tax benefits for Health Savings Account participants under the One, Big, Beautiful Bill (OBBB). These changes expand HSA eligibility, which allows more clients to save and to pay for healthcare costs through tax-free HSAs.

The OBBB expands access to HSAs by making the following changes:

• Telehealth and Remote Care Services: The OBBB made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan (HDHP) deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.
• Bronze and Catastrophic Plans Treated as HDHPs: As of Jan. 1, 2026, bronze and catastrophic plans available through an Exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. This designation expands the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an Exchange to qualify for the new relief.
• Direct Primary Care Service Arrangements: Beginning Jan. 1, 2026, an otherwise eligible individual enrolled in certain direct primary care (DPC) service arrangements may contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.

Notice 2026-05 addresses each of these changes. Treasury and the IRS invite comments on all aspects of this Notice by Mar. 6, 2026. Commentors are encouraged to use the Federal e-Rulemaking portal to submit comments online (indicate “IRS-2025-0335”). Paper submissions should be sent to: Internal Revenue Service, CC:PA:01:PR (Notice 2026-05), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.

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2.  2025 Nationwide Tax Forum Online: Distributions from Retirement Plans and IRAs

Tax professionals may want to review the IRS Nationwide Tax Forum Online (NTFO) seminar Distributions from Retirement Plans and IRAs: A Crash Course before the end of the year. This seminar explains when clients may be required to take distributions from retirement plans and IRA accounts and when they are allowed to access retirement savings while still working. The seminar also covers exclusions, distribution codes, expanded contribution options for Roth accounts and more.

All NTFO self-study seminars cost $29 each. Tax pros can earn one continuing education credit for each NTFO self-study seminar or audit a presentation for free. For more information, visit irstaxforumonline.com.

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3.  New Contact Information for Collection Advisory Offices

Tax professionals can use Publication 4235, Collection Advisory Offices Contact Information, to determine which IRS office to contact with questions about certain collection-related topics, notices of federal tax lien and where to submit requests for lien-related certificates. Tax professionals and their clients generally should not send correspondence to their local office.

In addition to contact information for IRS offices, Publication 4235 also includes updated information about where to file certain applications and forms, along with IRS resources for a variety of topics. For example, it includes links to the understanding a federal tax lien webpage, online account where clients can check the total amount of their tax debt, frequently asked questions on estate taxes and more.

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4.  Technical Guidance

The IRS released draft versions of Form 8964-ELE, Section 987 Elections, and Form 8964-TRA, Section 987 Transition Information, as well as draft versions of the Instruction 8964-ELE and Instruction 8964-TRA.

On Dec. 11, 2024, Treasury and the IRS issued final regulations under section 987 of the Internal Revenue Code. The regulations generally apply to taxable years beginning after Dec. 31, 2024. The Treasury Department and the IRS are considering possible modifications to the 2024 final regulations in connection with deregulatory efforts.

Tax professionals and taxpayers can use the new Form 8964-ELE to make or revoke elections under the 2024 final regulations as required under Regulations section 1.987-1(g). Individuals can use the new Form 8964-TRA to report the section 987 transition information required under Regulations section 1.987-10(k).

The IRS is developing another new form, Form 8964, to report amounts computed under the 2024 final regulations. The IRS expects to release a draft version of Form 8964 for comments in the first half of 2026. The published form is expected to be applicable to tax year 2027. This timing provides taxpayers sufficient notice and opportunity to comment and allows time for consideration of modifications to the 2024 final regulations.

To minimize taxpayer burden, until tax year 2027, taxpayers should continue to report section 987 gain or loss amounts on Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Foreign Branches. Taxpayers should also complete the new Form 8964-ELE and Form 8964-TRA, as applicable.

The IRS expects to publish final versions of Form 8964-ELE, Form 8964-TRA and the related instructions in the first quarter of 2026.

Three recent IRS notices detail international tax law provisions under Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act:

• Notice 2025-75 announces that the Department of the Treasury and the Internal Revenue Service intend to issue proposed regulations regarding the transition rule for dividends (the “transition rule”) in section 70354(c)(2). The transition rule modifies the application of section 951(a)(2)(B) of the Internal Revenue Code for certain taxable years of foreign corporations beginning before Jan. 1, 2026.
• Notice 2025-77 describes proposed regulations Treasury and the IRS intend to issue under section 70312, providing guidance on the effective date and application of section 960(d)(4) of the Internal Revenue Code.
• Notice 2025-78 announces that Treasury and the IRS intend to issue regulations regarding the new rules for calculating DEI. This notice primarily addresses the meanings of intangible property, “any other property of a type,” and sale or other disposition for section 250.

Notice 2025-75, Notice 2025-77 and Notice 2025-78 will be in Internal Revenue Bulletin 2025-52, dated Dec. 22, 2025.

Treasury, IRS allow States to make an Advance Election to participate in the new federal tax credit for individual contributions to Scholarship Granting Organizations under the One, Big, Beautiful Bill

IR-2025-121, Dec. 12, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued

Revenue Procedure 2026-6 allowing States, including the District of Columbia, to make an Advance Election to participate in a new tax credit for calendar year 2027. This new credit, established under the One, Big, Beautiful Bill, is for contributions to Scholarship Granting Organizations that serve elementary and secondary school students from low- and middle-income families.

Beginning Jan. 1, 2027, individual taxpayers may claim a nonrefundable federal tax credit for cash contributions to SGOs providing scholarships for elementary and secondary education expenses. The credit allowed to any taxpayer is limited to $1,700. However, for contributions to an SGO to be eligible for this credit, the SGO must be listed on a State list of one or more covered states for the applicable calendar year. A covered state is defined as one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate in the credit and identifies SGOs in the State.

Revenue Procedure 2026-6 provides that a State may choose to be a covered State for calendar year 2027 before it provides the IRS with a list of the SGOs located in the State, allowing SGOs additional time to prepare for the commencement of this new credit in 2027. To make this Advance Election, States must submit Form 15714, Advance Election to Participate Under Section 25F for 2027, on or after Jan. 1, 2026, and before the final date on which the State is permitted to submit the State SGO list. Form 15714 and its Instructions are now available on IRS.gov.

The deadline and procedure for perfecting the Advance Election by submitting the State SGO list will be provided in future guidance.  Future guidance also will address how to make an election to participate in the new tax credit for calendar year 2027 at the same time the State submits the State SGO list, and how to make elections, including Advance Elections, to participate in the credit for subsequent calendar years.

Notice 2025-70 provides additional guidance and a request for comments regarding State SGO lists and certifications necessary for State elections.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.