Treasury, IRS provide penalty relief for remittance transfer providers who fail to deposit excise tax under the One, Big, Beautiful Bill

IR-2025-102, Oct. 7, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing deposit penalty relief for the first three quarters of 2026 to remittance transfer providers. Notice 2025-55 provides relief in connection with the new excise tax imposed on certain remittance transfers under the One, Big, Beautiful Bill.

Penalty relief available for the first three quarters of 2026

Treasury and the IRS understand there might be challenges implementing the new law and have determined it is in the interest of sound tax administration to provide limited penalty relief related to remittance transfer tax deposits. 

Notice 2025-55 provides limited penalty relief for remittance transfer providers who fail to deposit the correct amount of remittance transfer tax as required during the first three quarters of 2026. Specifically, these providers may avoid deposit penalties if they:

• Make timely deposits, even if they are incorrectly calculated, and
• Ultimately pay the full amount of any underpayment by the due date of Form 720, Quarterly Federal Excise Tax Return, for the quarter.

Additionally, under today’s guidance, remittance transfer providers may use the deposit safe harbor rules under the Excise Tax Procedural Regulations even if there was an underpayment of required deposits of the remittance transfer tax for the first three quarters of 2026. However, providers must satisfy the reasonable cause standard for deposit penalties.

Remittance transfer tax under the OBBB

Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from certain senders, make semimonthly deposits and file quarterly returns with the IRS. The first semimonthly deposit is due Jan. 29, 2026. The 1% remittance tax will apply to certain remittances when the sender makes the transaction with cash, a money order, a cashier’s check or a similar physical instrument.

For more information, refer to One, Big, Beautiful Bill provisions on IRS.gov.

Treasury, IRS provide guidance for Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill

IR-2025-96, Sept. 30, 2025

WASHINGTON— The Department of the Treasury and the Internal Revenue Service today issued guidance on Qualified Opportunity Zone investments in rural areas as provided for under the One, Big, Beautiful Bill.

In 2018, certain economically distressed census tracts in the United States and its territories were designated as Qualified Opportunity Zones by the Treasury Department. Taxpayers who invest in QOZs receive certain tax benefits for their investments as an incentive to improve economic growth and job creation in these underserved communities.   

What’s new under the OBBB

Notice 2025-50 provides clarification on two important One, Big, Beautiful Bill provisions: the definition of “rural area” and the application of the substantial improvement threshold for certain improvements to property located in a QOZ that is comprised entirely of a rural area.

• Under the new law, a rural area means any area other than a city or town with a population greater than 50,000, and any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000. This definition applies to States, the District of Columbia and U.S. territories.

• The OBBB modified the substantial improvement threshold for improvements to property located in a QOZ that is comprised entirely of a rural area. As of July 4, 2025, the substantial improvement threshold for required additions to the basis for property located in these QOZs was reduced from 100 percent to 50 percent.

These changes are intended to offer enhanced QOZ tax incentives for investing in underserved rural areas and to address the unique challenges of rural development. There are currently 8,764 QOZs in the United States, many of which have experienced a lack of investment for decades. The notice released today by the Treasury Department and the IRS identifies 3,309 of those QOZs as comprised entirely of a rural area. A list of all current, designated QOZs is found in Notice 2018-48.

More information

Notice 2025-50 applies to all tangible property located in a QOZ that is comprised entirely of a rural area on or after July 4, 2025, and that has been, or is in the process of being, substantially improved. The Treasury Department and the IRS intend to issue future guidance on the forthcoming round of opportunity zones authorized by the OBBB, including the nomination and designation procedures.

For more information, refer to the One, Big, Beautiful Bill provisions page on IRS.gov.

Notice 2025-53 postpones various time-sensitive deadlines for taxpayers affected by the terrorist attacks in Israel throughout 2024 and 2025. The notice defines the covered area, identifies categories of “affected taxpayers,” and provides a list of the acts postponed. The postponement period is September 30, 2025, to September 30, 2026.  The effect of the separate determination of terroristic action and grant of relief in this notice is to further postpone acts that were postponed by Notice 2024-72 until September 30, 2026. Notice 2025-97 will be in IRB: 2025-43, dated: October 20, 2025.

Notice 2025-49 provides interim guidance regarding the application of the corporate alternative minimum tax (CAMT).  Proposed regulations addressing the application of the CAMT and technical corrections to those regulations (together, the CAMT Proposed Regulations) were published in the Federal Register on September 13, 2024, and December 26, 2024, respectively. Sections 3-10 of Notice 2025-49 provide rules for certain adjustments to adjusted financial statement income (AFSI) and rules for proposed applicability dates and reliance on the CAMT Proposed Regulations.

Notice 2025-49 will be in IRB: 2025-44, dated October 27, 2025

Revenue Ruling 2025-19 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruing 2025-19 will be in IRB: 2025-41, dated: October 6, 2025.

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.