IR-2025-91, Sept. 15, 2025

WASHINGTON —The Department of the Treasury and the Internal Revenue Service today issued final regulations addressing several SECURE 2.0 Act provisions relating to catch-up contributions. (Catch-up contributions are additional contributions under a 401(k) or similar workplace retirement plan for employees who are age 50 or older.) The final regulations include final rules related to a SECURE 2.0 Act provision requiring that catch-up contributions made by certain higher-income participants be designated as after-tax Roth contributions.

The final regulations provide guidance for plan administrators to implement and comply with the new Roth catch-up rule and reflect comments received in response to the proposed regulations issued in January.

The final regulations also provide guidance relating to increased catch-up contribution limits under the SECURE 2.0 Act for certain retirement plan participants, in particular employees between the ages of 60-63 and employees in newly established SIMPLE plans.

Final regulations differ from the proposed regulations

While the final regulations generally follow the proposed regulations, changes were made in response to comments received on the proposed regulations. For example, the final regulations permit a plan administrator to aggregate wages received by a participant in the prior year from certain separate common law employers in determining whether the participant is subject to the Roth catch-up requirement.

In addition, the final regulations include changes to certain provisions in the proposed regulations, including those relating to:

• correction of a failure to comply with the Roth catch-up requirement,
• implementation of a deemed Roth election, and
• plans that cover participants in Puerto Rico.

Final regulations generally apply in 2027

The provisions in the final regulations relating to the Roth catch-up requirement generally apply to contributions in taxable years beginning after Dec. 31, 2026. However, the final regulations provide a later applicability date for certain governmental plans and plans maintained under a collective bargaining agreement. The final regulations also permit plans to implement the Roth catch-up requirement for taxable years beginning before 2027 using a reasonable, good faith interpretation of statutory provisions. The final regulations do not extend or modify the administrative transition period provided under Notice 2023-62, which generally ends on Dec. 31, 2025.

Greetings,

September is National Preparedness Month, National Preparedness Month.  IRS has prepared a news release and social media content urging individuals and businesses to create or update their emergency preparedness plans and providing additional disaster assistance resources from IRS and other federal government organizations.

I have attached copies of news release IR-2025-89 IRS urges emergency preparedness ahead of peak disaster season in English, Spanish and Chinese. I have also attached the social media content. Below you will find suggest captions for the social media post.

Additionally, we have prepared Tax Tip 2025-61 Ways to help and what to look out for when donating after a disaster. The article provides tips for making donations and things to watch out for from scammers.

Please share this information amongst your network for colleagues, members and clients. Also consider sharing the information on your website, social media pages, or newsletters. If you have any questions, feel free to reach out to me.

Suggested Social Media Captions

Peak disaster season is upon us. Stay prepared, protect your documents, make digital backups, and learn about tax relief options. Get additional details from the #IRS: https://ow.ly/l1c850WRnBF

Prepare for a disaster by keeping your important documents safe. Store key files in waterproof and fireproof containers, create digital copies, even consider keeping copies with a trusted friend or relative. Explore more helpful #IRS tips: https://ow.ly/QaAh50WRnJa

When disasters strike, the #IRS is here to help. After a federal disaster is declared, the IRS often offers filing and payment extensions. Learn more: https://ow.ly/QaAh50WRnJa

DYK property damage not covered by insurance after a disaster may be deducted on a tax return? See #IRS requirements: https://ow.ly/QaAh50WRnJa

Lost important documents in a disaster? Follow these simple steps to reconstruct your #IRS records: https://ow.ly/QaAh50WRnJa

#Smallbiz owners: Create an emergency preparedness plan for you and your employees. #IRS has details: https://ow.ly/QaAh50WRnJa

#IRS urges emergency preparedness ahead of peak disaster season. https://ow.ly/QaAh50WRnJa

#NationalPreparednessMonth reminder: The #IRS advises individuals and businesses to create or update their emergency preparedness plans. https://ow.ly/QaAh50WRnJa

Employers: Review your payroll protections this #NationalPreparednessMonth. #IRS has details on how:  https://ow.ly/QaAh50WRnJa

Regards,

Inside This Issue

1. Applying for an Employer Identification Number (EIN) just got easier
2. Sept. 17 Webinar: Tax Obligations of U.S. Individuals Living and Working Abroad
3. News from the Justice Department’s Tax Division
   

1.  Applying for an Employer Identification Number (EIN) just got easier

On Aug. 18, 2025, the IRS updated the Apply for an Employer Identification Number (EIN) online application as part of ongoing modernization efforts to improve taxpayer service. The modernized application features a new look and web experience. Federal, state and local government entities can now use the application to receive an EIN. Although the application has a new look, the overall functionality remains the same.

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2.  Sept. 17 Webinar: Tax Obligations of U.S. Individuals Living and Working Abroad

Join the IRS for an upcoming webinar, Tax Obligations of U.S. Individuals Living and Working Abroad, scheduled for Wednesday, Sept. 17, from 2 – 4:00 p.m. ET. IRS presenters from the Large Business & International division will:

• Specify the U.S. income tax obligations of U.S. citizens and residents abroad
• List the requirements for claiming the foreign earned income exclusion
• Summarize the U.S. employment tax obligations of U.S. citizens and residents abroad
• Answer questions from the audience

Tax professionals can earn up to two Continuing Education (CE) credits. To see a complete list of webinars, visit the Upcoming Webinars page on IRS.gov.

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3.  News from the Justice Department’s Tax Division

A Nevada tax return preparer, Michael J. Moore, of Las Vegas, pleaded guilty to advising clients to commit tax evasion. According to court documents and statements made in court, Moore operated a tax and accounting business known as X Tax Pros. From 2015 through April 2025, Moore promoted a fraudulent tax avoidance scheme called the “Special Tax Shelter Strategy,” promising clients if they paid him certain “fees,” he could prepare a tax return that eliminated the clients’ taxes owed to the IRS and, in most cases, create a large tax refund. Moore charged the clients tens of thousands of dollars in fees, which the clients paid from the refunds they received from the IRS.

In total, Moore caused a tax loss to the United States of more than $3.5 million. Moore is scheduled to be sentenced on Dec. 8 and faces a maximum penalty of five years in prison.

Issue Number:  IR-2025-89 IRS urges emergency preparedness ahead of peak disaster season IR-2025-89, Sept. 4, 2025 WASHINGTON — As hurricane season peaks and wildfire risks remain high, the IRS urges individuals and businesses to create or update their emergency preparedness plans as part of National Preparedness Month. Disaster readiness starts with safeguarding critical documents, recording valuables and knowing how to access IRS support. Keeping updated records can speed up recovery and make it easier to apply for disaster assistance and emergency relief if a disaster strikes. Safeguard important records Store essential documents like tax returns, birth certificates, Social Security cards, insurance policies, and property titles in waterproof, fireproof containers. Create digital backups and consider keeping copies with a trusted contact outside the disaster-prone area. Inventory property and assets Maintain a detailed list of personal and business property. Photos, videos and written descriptions (including make, model and year) can support insurance and tax claims. IRS disaster loss workbooks can help individuals and businesses catalog possessions and business equipment. Reconstruct records if needed If original documents are lost, banks and other institutions usually can provide electronic copies. The IRS offers resources to help reconstruct records. Employers: Review payroll protections Employers should confirm their payroll service providers have a fiduciary bond for added protection. Any business can create an Electronic Federal Tax Payment System (EFTPS) account to make secure, trackable online or phone payments, vital if displaced during a disaster. Visit EFTPS.gov to enroll. IRS disaster relief is available When a federal disaster is declared, the IRS often delays filing and payment deadlines. Relief is automatically applied based on the IRS address of record. Taxpayers outside affected areas, including relief workers or those with impacted tax records, may request assistance by calling 866-562-5227. Uninsured disaster losses can be deducted on the tax return for the year of the loss or the prior year. See Publication 547, Casualties, Disasters, and Thefts for details. Learn more National Preparedness Month – Ready.gov IRS Tax Relief in Disaster Situations DisasterAssistance.gov U.S. Small Business Administration, Office of Disaster Recovery and Resilience Federal Emergency Management Agency   Back to Top

IR-2025-87, Aug. 25, 2025

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2025.

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the rates:

• 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
• 5% for the portion of a corporate overpayment exceeding $10,000.
• 7% for underpayments (taxes owed but not fully paid).
• 9% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2025. See the revenue ruling for details.

Revenue Ruling 2025-18 announcing the rates of interest will appear in Internal Revenue Bulletin 2025-37, dated Sept. 8, 2025. 

The IRS this week issued frequently asked questions regarding the modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under the One, Big, Beautiful Bill (OBBB). The FAQs provide guidance on several energy credits and deductions that are expiring under OBBB and their termination dates.

IR-2025-85, Aug. 21, 2025

WASHINGTON – The IRS invites the public to participate in an anonymous feedback survey on tax preparation and filing options, which will run through Sept. 2, 2025.

The survey is being conducted as part of the Department of Treasury and the IRS’s efforts to fulfill a reporting requirement to Congress under the One, Big, Beautiful Bill Act. The law directs Treasury to deliver a report to Congress by Oct. 2, 2025, on several key issues related to free tax filing options for the public.

Treasury and the IRS encourage taxpayers to share their perspectives and help inform this important congressional report.

To participate, visit the Free Online Tax Preparation Feedback Survey or the IRS.gov landing page. Participation is anonymous.

eBook: The OBBB Just Passed

Download today to The One Big Beautiful Bill Act: A Tax Planning Revolution for Accounting Firms

Inside, You’ll Discover:

 ✓ How 100% permanent bonus depreciation creates immediate six-figure savings opportunities for your business clients
✓ The new QBI deduction thresholds that make pass-through entities more attractive than ever (and how to maximize the benefits)
✓ Why the temporary SALT cap increase to $40,000 creates a 5-year planning window you can't afford to miss
✓ The retroactive R&D expense deduction that could generate massive refunds for qualifying businesses back to 2022
✓ How to leverage Section 1202 QSBS modifications for clients considering business exits
✓ The exact ROI Method™ to price your tax planning services at $4,800+ (instead of $218 for tax prep)
✓ Real examples of how combining OBBA strategies creates exponential tax savings for clients

The IRS recently updated the mailing addresses where certain tax forms for certain states should be filed. Please ask your SLs and STAs to inform their tax pro stakeholders and other stakeholders as appropriate.

Some mailing addresses for the following forms were updated:

•           1040

•           1040-SR

•           1040-ES

•           4868

•           940

•           941

•           943

•           944

•           945

Most pages on IRS.gov now seem to reflect the correct addresses, but the latest revision of Publication 3891 has not yet been posted. Therefore, please share the attached version of the Publication 3891 rather than linking to the version on IRS.gov for now.

Please share as appropriate, especially on your website

IRS also appreciate any feedback, concerns, or issues that will help us improve our services….

Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act

The U.S. Department of the Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on “Strengthening American Leadership in Digital Financial Technology.” This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring. As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools.

Treasury News Release: https://home.treasury.gov/news/press-releases/sb0228

Federal Register Notice: https://www.federalregister.gov/documents/2025/08/18/2025-15697/request-for-comment-on-innovative-methods-to-detect-illicit-activity-involving-digital-assets