The IRS announced inflation-adjusted limits on benefits and contributions for various retirement accounts, including maximum contribution amounts for 401(k) plans and traditional and Roth IRAs.
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IRS Practice & Procedure
AICPA seeks guidance on measuring gambling gains, losses
The AICPA urged Treasury and the IRS to provide guidance on measuring, substantiating, and reporting gambling gains and losses, saying uncertainty can cause some taxpayers to report taxable income exceeding their actual economic gain.
IRS eyeing Tax Pro Account enhancements for practitioners
National Taxpayer Advocate Erin Collins said the IRS is working on Tax Pro Account enhancements that could allow practitioners to upload signed powers of attorney electronically. Speaking at the AICPA National Tax Conference, Collins also discussed amended return processing, CP53E notices, and other IRS modernization efforts.
IRS official signals additional guidance on AI, practitioner fees
The IRS Office of Professional Responsibility (OPR) plans additional guidance on artificial intelligence and practitioner fees after concerns from the AICPA and other groups about language in earlier guidance. Speaking at the AICPA National Tax Conference, the OPR’s director said the agency was not suggesting practitioners must reduce fees simply because AI improves efficiency.
IRS expands Tax Pro Account to allow payments on behalf of business clients
The IRS has expanded the Tax Pro Account to allow authorized tax professionals to make certain payments on behalf of business clients, building on a series of recent enhancements to the online service.
IRS announces inflation adjustments for tax year 2027
The adjustments include increases in the standard deduction, income tax bracket thresholds, and the child tax credit. The changes generally apply to returns filed in 2028.
AI risks to the Sec. 7525 practitioner privilege
Practitioners’ workpapers and communications with taxpayers are often protected from compelled disclosure, but when they use artificial intelligence to research or analyze tax positions, they may create records that are vulnerable to discovery. This article explains the risk after the Heppner case and recommends safeguards for firm policies and engagement letters to preserve clients’ confidentiality privilege.
Beauty may be in the eye of the beholder, but is value?
Adhering to the valuation and substantiation rules for charitable donations of noncash property can avoid IRS challenges.
Taxpayers’ rights and the IRM: Part 2
Acquaintance with relevant Internal Revenue Manual provisions can aid practitioners in protecting clients’ rights in tax controversies.
No deduction for attorneys’ fees from Fair Credit Reporting Act suit
The taxpayers’ suit did not involve claims of unlawful discrimination, as required for a deduction under Sec. 62(a)(20), and their settlement payments were includible in gross income, the Tax Court held.
Supplemental assessment due to IRS error is proper
The IRS made the assessment to remedy its material error in calculating the original assessment, making the supplemental assessment collectible by levy, the Tax Court held.
“Ghost preparers” tied to $179 million in potentially fraudulent refunds
A TIGTA report linked ghost preparers to $179 million in refund claims over two years. Its findings come as legislators consider the Taxpayer Assistance and Service Act, which would expand IRS oversight of paid tax return preparers.
AICPA: Trump account regulations make 2026 rollout difficult
Proposed regulations governing employer contributions to Trump accounts are “administratively burdensome” and make a 2026 rollout potentially difficult, the AICPA said. A letter to the IRS and Treasury asked for employers to be given more time and for the programs to be easier to administer.
Final regulations clear path for direct IRS card payments
The IRS on Friday issued final regulations implementing Taxpayer First Act provisions that would allow taxpayers to make credit and debit card tax payments directly to the IRS rather than through third-party payment processors. The final regulations adopt, without change, proposed regulations issued in July 2024.
IRS urged by national taxpayer advocate to pause Kwong claims denials
National Taxpayer Advocate Erin Collins urged the IRS to halt denials of claims tied to ongoing Kwong litigation, arguing that taxpayers could lose rights or pursue unnecessary litigation while courts continue to consider the case. The IRS has received more than 275,000 refund and abatement claims related to Kwong, she said.
IRS proposes regulations implementing premium tax credit changes
The IRS and Treasury proposed regulations implementing Sec. 36B premium tax credit changes enacted in H.R. 1, including new eligibility and verification requirements, reporting changes, and rules governing repayment of excess advance premium tax credits.
IRS grants Hurricane Isaias tax relief in Alabama, Florida
Taxpayers in parts of Alabama and Florida that sustained damage from Hurricane Isaias have until February to file various federal tax returns and make tax payments under disaster relief announced Wednesday by the IRS. The IRS said it will automatically identify taxpayers in the covered disaster areas and apply the relief.
AICPA recommends IRS clarification of Form 8050
The AICPA asked the IRS to clarify that Form 8050, used to provide direct deposit information for tax refunds, will not be included in exempt organizations’ publicly available tax return filings. An AICPA letter said the change would reduce the risk of inadvertently disclosing sensitive banking information.
Treasury, IRS propose regulations for education tax credit
Treasury and the IRS proposed regulations for the education freedom tax credit, a new federal credit under Sec. 25F for contributions to organizations that provide scholarships to eligible elementary and secondary schools.
Senate approves taxpayer-focused reforms backed by AICPA
The Senate unanimously approved the Taxpayer Assistance and Service Act, a bipartisan package of 65 tax administration reforms backed by the AICPA. The measure now moves to the House.
PRACTICE MANAGEMENT
2026 tax software survey
CPAs rate their return preparation software’s performance during this year’s tax season.
