Tax Section news and member FAQ

• Using AI in tax practice? Start here.
  The IRS has issued introductory guidance on the responsible use of artificial intelligence (AI) in federal tax practice. Access our insights to learn key considerations for maintaining compliance, protecting client information and exercising professional judgment when using AI tools.

• SALT Roadmap update: H.R. 1 conformity evolves across states
  States continue to respond to H.R. 1, with Arizona updating its IRC conformity rules, Massachusetts adopting selective conformity, and Florida, Rhode Island and Vermont decoupling from certain federal provisions. For a deeper look at these developments and other state tax changes, access the State and Local Tax (SALT) Roadmap.

• IRS streamlines penalty relief
  The IRS is introducing a new automatic penalty relief program for taxpayers with a history of timely compliance. The new Automatic Exemption from Penalty (AEP) process will streamline relief and gradually replace First Time Abate (FTA) beginning in summer 2026. The National Taxpayer Advocate has also highlighted the change in a recent blog, calling it a long-awaited taxpayer win and outlining how the new process will simplify access to penalty relief. Read more.
  

• Form 843 filing options
  The IRS has updated its Form 843, Claim for Refund and Request for Abatement, filing options to include electronic submission. Working on a Kwong v. United States (Kwong) claim? Visit our resource for a Form 843 filing checklist and additional guidance to help navigate the process before the July 10 deadline.

• Business Tax Account renewal reminder
  Designated Officials for S and C corporations using the IRS Business Tax Account must revalidate their status between June 15 and July 29 to maintain access. Annual renewal is quick and easy — simply sign in to the Business Tax Account to renew.

• Cut through the tax noise with insights from both sides of the story
  Join April Walker, former IRS Communications Chief Terry Lemons and Forbes’ Kelly Phillips Erb (Taxgirl) on this latest Tax Section Odyssey podcast episode as they discuss IRS complexity, media coverage, tax misinformation, AI’s impact and why practitioners remain trusted guides in today’s fast-moving information environment.

• July tax advisory tip — Prepare. Protect. Prevail. Get disaster ready
  Encourage your clients to assess their current real and personal property insurance policies and make necessary adjustments to protect their assets in the event of a disaster including review of real estate and personal property insurance policies. Find more tips each month in the 2026 Tax and Financial Planner.
  

• Kwong alert: Checklist added as deadline nears
  Don’t miss the July 10 deadline tied to Kwong v. United States (Kwong). The updated FAQ resource now feature a new, easy-to-use checklist at the top to help you quickly determine next steps for your clients. Review the latest guidance and take action now to ensure you’re addressing potential refund and penalty considerations.

• Revenue Procedure 2026-25 clarifies gift tax treatment for Trump accounts
  New “Trump accounts” (Sec. 530A) launch July 4, offering eligible children a $1,000 federal deposit and a new savings opportunity. The AICPA encourages families to understand the rules before contributing. The IRS has issued Revenue Procedure 2026-25, which provides a safe harbor for certain Trump account contributions, allowing them to qualify for the annual gift tax exclusion without the need to file a gift tax return. Explore our FAQs for key considerations, 529 plan comparisons and practical guidance.

• NTA mid-year report: Strong filing season for online taxpayers, weaker for others
  The IRS delivered a largely successful 2026 filing season, processing millions of returns and issuing most refunds without delay, according to a report released by National Taxpayer Advocate (NTA) Erin Collins. However, the report notes that taxpayers needing direct assistance encountered long waits, service challenges and confusion. Read more.

• IRS outlines responsible AI use for tax practitioners
  The IRS Office of Professional Responsibility (OPR) released introductory guidance on how Circular 230 applies to tax practitioners’ use of artificial intelligence (AI). Practitioners remain responsible for accuracy, due diligence and confidentiality, including reviewing AI-generated output, protecting client data and using appropriate firm controls. Read more.

• WISP reminder: Protect your clients — and your practice
  The IRS is reminding tax professionals that a Written Information Security Plan (WISP) is required by law and essential for protecting sensitive client data. A strong WISP helps firms identify risks, implement safeguards and stay prepared for potential security incidents. Get started or strengthen your plan — download our WISP template designed specifically for tax professionals.

• Treasury and the IRS signal upcoming QOZ regulations
  Treasury and the IRS announced in Notice 2026-40 the plan to issue proposed regulations on qualified opportunity zones (QOZ) under H.R. 1 (OBBBA) changes, along with transitional guidance for investments made under prior law. The forthcoming regulations are expected to reflect rules outlined in the notice and provide additional clarity on how the updated QOZ framework will be implemented.

• Disaster Relief Resource Center for tax practitioners
  With disaster season underway, the IRS urges proactive planning — secure important documents, create backups and be ready to access tax relief if needed. Explore the IRS guidance and visit our Disaster Relief Resource Center for more tools and timely updates.

• Seven CPAs recognized at AICPA ENGAGE 2026
  The AICPA honored seven CPAs at ENGAGE 2026 in Las Vegas, recognizing excellence in specialty areas, volunteer service and contributions to the profession. Awards included Standing Ovation honors in personal financial planning and technology advisory, along with a new Technology Advisory Volunteer of the Year recognition.

• IRS to merge tax practitioner offices despite AICPA opposition
  The IRS will merge the Return Preparer Office (RPO) and Office of Professional Responsibility (OPR) into the Tax Professional Management Office to streamline operations, despite AICPA concerns. The AICPA warned the change could cause confusion and create risks by combining oversight roles. The IRS said the offices will remain distinct in function and that oversight and professional distinctions will not change.

• IRS online access rules: Age matters
  Taxpayers must be 18+ to create an IRS online account, as ID.me cannot verify individuals under 18. Minors must use alternative methods (e.g., paper or a parent/guardian); for more answers to frequently asked questions on IRS tools and handy links, visit our IRS online tools glossary.

• State tax update: H.R. 1 conformity updates for New York and Indiana
  States continue to diverge on H.R. 1 conformity. New York decouples from Secs. 174A and 168(n), while Indiana selectively conforms but remains decoupled from provisions including Secs. 163(j), 168(k), 168(n) and federal R&E rules.

• Disaster tax relief for Hawaii and Georgia: August 20 deadline to know
  Disaster tax relief latest developments: Hawaii disaster tax relief deadlines have been extended to August 20 (previously July 8), giving affected taxpayers additional time to file and pay federal taxes following severe storms. In addition, taxpayers impacted by wildfires in parts of Georgia also have until August 20, to meet federal filing and payment obligations, aligning relief timelines across both states.

• Sec. 892 proposed rules offer certainty for foreign government investments
  Treasury and the IRS issued proposed Sec. 892 regulations clarifying applicability dates for foreign government investors, including sovereign wealth funds. The guidance provides grandfathering and a transition period, offering greater certainty and flexibility.

• Digital-first IRS tools: ID.me access for Trump account elections
  The IRS now allows taxpayers to view and submit Trump account elections through their IRS online account. After verifying their identity through ID.me, users can securely track the status of Form 4547, Trump Account Election(s), and submit elections electronically — helping streamline processing and improve accuracy. Explore our glossary for more details on ID.me, IRS online accounts and related tools.

• State and Local Tax (SALT) updates: Conformity changes and PTET extension
  Recent state developments include Connecticut decoupling from select H.R. 1 provisions, Hawaii updating IRC conformity and adding a 13% top rate, and Minnesota extending its passthrough entity tax (PTET) election. Stay current via the SALT Roadmap.

• New insights on tariffs and refund considerations
  Stay ahead of evolving tariff developments. The Tax implications of tariffs resource has been updated to include the latest insights on tariff refund considerations — helping you understand how potential recoveries may impact taxable income, cost of goods sold and overall planning. With refund rules still developing, this is a must-read to help you navigate the tax implications with confidence.

• This week's listen — Beyond the script: Improv for advisory confidence
  Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders with the Tax Section Odyssey podcast. In this episode, April Walker and Jennifer Dymond discuss how improv techniques can help tax practitioners enhance client communication and build advisory confidence.

• June 2026 tax advisory tip — Half-year review
  Compare clients’ year-to-date spending against their annual budget and discuss whether they’re on track or need adjustments. There’s still time to course-correct before year-end. Explore more tips, key dates and planning insights in the 2026 Tax and Financial Planner.

• AICPA small firm generative AI policy template
  Help your firm adopt AI with confidence. This customizable policy template is designed specifically for small firms — giving you a practical starting point to manage risks, set expectations and guide responsible AI use.

• Trump account elections now available online
  Taxpayers can now submit a Trump account election through their IRS online account — alongside Trumpaccounts.gov — and track their election status online. Pilot contribution deposits are expected to begin no earlier than July 4, 2026, with additional IRS notices forthcoming. Find out answers to commonly asked questions, key information and insights.

• Revised 1099‑MISC and 1099‑NEC now available
  The IRS has released Form 1099‑MISC, , and draft Form 1099‑NEC, , on IRS.gov, including new fields for qualified overtime, qualified tips and a tipped occupation code. Draft instructions for forms 1099-MISC and 1099-NEC have also been released. Check out our FAQs for more insights.

• Pillar Two in focus: New GloBE filing and safe harbour guidance
  Organization for Economic Development’s (OECD) jurisdictions implementing the Global Minimum Tax from 2024 have introduced a common approach for centralized GloBE Information Return filings, along with updates to the central record and guidance on the Transitional UTPR Safe Harbour. Visit the AICPA’s OECD BEPS 2.0 — Pillar One and Pillar Two Resource Center for more tools and the latest updates.

• Protecting COVID‑era refunds: Key update from the NTA
  In her third blog, the National Taxpayer Advocate (NTA) highlights urgent steps to preserve potential COVID-era refunds — most taxpayers must act by July 10, 2026, and may need to file protective claims to safeguard their rights. Visit the AICPA’s Kwong v. United States Resource Center for more news, tools and insights.

• State tax update: Georgia lowers corporate tax rate, plans further reductions
  Georgia has enacted further corporate tax rate reductions under H.B. 463, signed May 11, 2026. Effective for tax years beginning on or after Jan. 1, 2026, the rate decreases from 5.19% to 4.99%, with additional annual reductions of 0.125% starting in 2027 — subject to certain conditions — until reaching 3.99%. This follows rate cuts enacted in 2024 and 2025.

• Your questions on tariffs — answered
  Looking for clear guidance on international tariffs? Our tariff FAQs have been recently updated and continue to serve as a go to resource for timely answers and practical insights for tax practitioners.

• A practical template for your GLBA WISP
  Our Gramm‑Leach‑Bliley Act (GLBA) Written Information Security Plan (WISP) template has been updated to ensure continued clarity and accuracy. Use this customizable template to help document your firm’s information security program and support compliance.

• State tax update: Arkansas tax rates reduce
  Governor Sarah Huckabee Sanders has signed legislation lowering the state’s top individual and corporate income tax rates. The top individual rate is now 3.7%, with a two‑tier structure applying for income above $94,700. Beginning with tax years starting on or after Jan. 1, 2027, the top corporate income tax rate drops to 4.1% (from 4.3%), with the same rate structure applied to both domestic and foreign corporations.

• Stay updated: Kwong v. United States
  Kwong v. United States (Kwong) is a court case every tax practitioner should be watching. Head to the new AICPA Resource Center for updates and find FAQs and tools including a client alert email template to help you navigate what’s next.

• A new IDES access solution for foreign filers
  The IRS is creating a new Foreign Filer Transmitter Control Code Registration System to help certain filers submit information returns through the International Data Exchange System (IDES). This addresses access issues caused by the new Information Returns Intake System (IRIS) system's stricter authentication requirements. Additional guidance on eligibility and implementation will be released soon.

• State tax update: Kentucky R&D expense clarification
  Kentucky's H.B. 869 was signed on April 27, 2026, and modifies H.B. 757, which had decoupled the state from H.R. 1 provisions on domestic research and development (R&D) expense treatment under Sec. 174A. The new law clarifies that for tax years beginning on or after Jan. 1, 2026, Kentucky taxpayers must add back R&D deductions claimed under Sec. 174A but may subtract amortization calculated under Sec. 174 as it existed on Dec. 31, 2024.

• Tax Section Odyssey podcast: A timely look at Kwong
  In this episode of the Tax Section Odyssey podcast, April Walker and Michael Waalkes unpack Kwong and why it has quickly become a post–filing season priority for CPA firms. Tune in for practical insights on how Sec. 7508A’s COVID relief period may affect deadlines, refund claims and risk management — and what firms should be doing right now.

• Received a CP53E notice? What to know
  As the IRS continues modernizing its payment process, some taxpayers may receive a CP53E notice requesting banking information. Explore an overview of these notices and key practical tips.

• IRS announces streamlined extension option for disallowed ERC claims
  The IRS has announced a streamlined way for certain taxpayers to extend the time to resolve a disallowed employee retention credit (ERC) claim and avoid refund litigation. Visit our FAQs to learn how the two‑year deadline works, who qualifies for the CP320B/Form 907 process and what steps may be needed to preserve an ERC dispute.

• CAPE tariff refund portal — What CPAs and firms need to know + client letter
  Following the Supreme Court’s February 2026 ruling, U.S. Customs and Border Protection (CBP) has launched a new International Emergency Economic Powers Act (IEEPA) tariff refund process through its Consolidated Administration and Processing of Entries (CAPE) system. Learn key steps CPAs should consider and download a client‑ready letter explaining CAPE filing requirements starting April 20, 2026. Bookmark the Tariff Resource Center for the latest news, guidance and tools.
  
  

• Taxpayer Advocacy Panel issues 2025 Annual Report
  On April 24, the Taxpayer Advocacy Panel released its 2025 Annual Report highlighting accomplishments and ongoing efforts to strengthen the IRS delivery, improve communications with taxpayers, reduce taxpayer burden and support continued modernization of tax administration.
  
  

• State tax update: What’s changing in Kentucky, Oregon and Maine
  Several states are decoupling from selected H.R. 1 provisions beginning in 2026, including bonus depreciation and R&D expensing, with Kentucky and Oregon making targeted conformity changes. Maine will also impose a new 2% surcharge on high income individuals, while state level adoption of H.R. 1’s R&D expensing rules will be phased in through 2030.

• IRS issues Whistleblower Alert, expands efforts to uncover fraud
  The IRS issued a Whistleblower Alert warning of potential misuse, diversion, or fraudulent use of federal funds by tax‑exempt organizations, individuals, and businesses, and is encouraging the public to report credible information. The alert highlights this as a high‑risk compliance area and aims to help the IRS identify and address possible fraud involving federal funds and grants.
  
  

• Latest disaster tax relief guidance for Hawaii, Mississippi and Tennessee
  Stay current on disaster‑related tax relief with our updated Disaster Tax Relief FAQs and Latest Developments page, now featuring new IRS alerts for Hawaii, Mississippi and Tennessee. Tax Section members can use this page to quickly track filing extensions, penalty relief and other time‑sensitive guidance for affected and non‑affected taxpayers.
  
  

• State tax update: Maryland decoupling and West Virginia rate update
  Maryland has enacted key depreciation changes starting after Dec. 31, 2025, including decoupling from Sec. 168(n) qualified production property depreciation and limiting Sec. 168(k) bonus depreciation for certain manufacturers. Meanwhile, West Virginia’s individual income tax rates for tax years beginning on or after Jan. 1, 2026, now range from 2.11% to 4.58%.

• Final Treasury/IRS regulations address tip income
  The IRS has released final regulations implementing H.R. 1 “no tax on tips,” defining eligible occupations and clarifying what qualifies as deductible tips. The final rules expand and refine the list of tipped occupations and provide more detail on tip treatment and reporting, following extensive public comment. Access in‑depth insights with answers to common questions and side‑by‑side comparisons of the final and proposed regulations.
  
  

• New IRS guidance sets path for 2027 Qualified Opportunity Zones (QOZs)
  On April 7, 2026, the IRS issued Rev. Proc. 2026-12, which outlines the process for nominating new QOZs for the next designation cycle. It identifies eligible population census tracts, including those that are entirely rural, that may be nominated by the chief executive officers of each state, the District of Columbia and U.S. territories. Census tracts nominated under this process, once approved, will be designated as QOZs beginning in 2027. Explore key insights.
  
  

• IRS Business Tax Account update
  On April 6, 2026, the IRS expanded its Business Tax Account (BTA) to include partnerships, government entities and tax-exempt organizations, broadening secure, self-service digital access beyond sole proprietors and corporations. Check out related guidance and quick links to additional IRS online tools resources for more information and practice insights.
  
  

• State tax update: IRC conformity developments in Georgia and New Mexico Georgia's H.B. 1199, enacted March 20, 2026, updates IRC conformity through Jan. 1, 2026, while continuing to decouple from bonus depreciation, select Tax Cuts and Jobs Act (TCJA) provisions and parts of H.R. 1. By contrast, New Mexico’s rolling conformity will adopt key H.R. 1 provisions, though S.B. 151 decouples certain federal rules and requires full Net Controlled Foreign Corporation Tested Income (NCTI) inclusion beginning Jan. 1, 2027.
  
  

• IRS announces tax filing extension for DHS employees
  Treasury and the IRS announced tax filing relief for Department of Homeland Security (DHS) personnel affected by the ongoing shutdown, citing the financial and administrative burdens placed on employees who continue to work without pay. Impacted DHS personnel will receive an automatic 30‑day filing extension — moving the deadline to May 15, 2026 — with penalty and interest relief included.

• State‑triggered federal tax disaster relief: Flyer & governor letter template
  Enacted July 24, 2025, the Filing Relief for Natural Disasters Act allows governors to request discretionary federal tax filing and payment relief for state‑declared disasters, separate from automatic presidential relief. Download a flyer for an overview of the two‑step state‑trigger process and access a governor letter template to request federal tax filing and payment relief under Sec. 7508A(c).
  
  

• 4 million children have been signed up for Trump Accounts with 1 million claiming the $1,000 pilot program contribution
  On March 31, 2026, the IRS announced that more than 4 million children have been enrolled in tax‑favored Trump Accounts, including over 1 million covered by elections for the $1,000 pilot program contribution. Eligibility for the $1,000 contribution is based on the child’s date of birth.
  
  

• State tax update: Utah rate reduction and permanent PTET election
  S.B. 60, signed March 23, 2026, retroactively lowers Utah’s corporate and individual income tax rates from 4.50% to 4.45% for tax years beginning on or after Jan. 1, 2026. H.B. 77, also signed March 23, 2026, permanently extends Utah’s PTET election for tax years beginning on or after Jan. 1, 2022. Explore all state pages in the SALT Roadmap.

• State tax update: Indiana and H.R. 1 conformity
  Indiana generally follows static conformity to the IRC as of Jan. 1, 2023, but has selectively conformed to three H.R. 1 provisions — the adoption tax credit, certain energy property recovery periods and the telehealth safe harbor — through July 4, 2025. The state does not conform to the remaining H.R. 1 provisions for 2026, requiring return adjustments. Explore all state pages in the SALT Roadmap.
  
  

• IRS watchdog cites resource limits, duplication in partnership audits
  Limited resources and a duplicative review process contributed to IRS problems with auditing large partnerships, a government watchdog said in a review issued earlier this month. Read more.

• State tax update: Ohio updates IRC conformity date
  Ohio updated its IRC conformity date to March 5, 2026, incorporating federal tax law changes enacted through that date, including H.R. 1. For tax years ending between March 7, 2025, and March 5, 2026, taxpayers may irrevocably choose which federal provisions apply, though some Ohio-specific adjustments may be required. Explore all state pages in the SALT Roadmap.
  
  

• Before mailing — New USPS postmark changes: FAQs + client alert
  Effective Dec. 24, 2025, the USPS clarified that a postmark generally reflects when mail is first processed — not when it’s dropped off or accepted — creating potential risks for time‑sensitive tax filings. Access new FAQs explaining what changed, why it matters and steps to help reduce late‑filing risk. A downloadable client alert is also available to share with clients.
  
  

• No bank account on file? IRS Notice CP53E
  Following a March 25, 2025, executive order to phase out paper checks by Sept. 30, 2025, the IRS announced the end of paper refund checks beginning that date and later issued FAQs in January 2026 to explain the transition to electronic payments. Now’s the time to flag for clients that the IRS will issue Notice CP53E to taxpayers who do not have a bank account on file, outlining next steps for receiving funds.
  
  Check out our FAQs for more information.
  
  

• Tax extension client communications
  During the height of busy season, now’s the time to think strategically about which clients may be good candidates for an extension. Sending an extension reminder letter can help start that conversation early and keep expectations clear. You can also share the Tax Extension FAQ for Clients to support those discussions and address common questions and misconceptions up front.
  
  

• The electronic payments toolkit: Help clients transition smoothly
  The IRS has released Fact Sheet 2026‑02 outlining the shift to electronic payments under the March 2025 Executive Order (EO), which ends most paper checks — including tax refunds — by Sept. 30, 2025, and encourages electronic payments whenever practical. To help practitioners guide clients through this transition, we’ve assembled client‑ready resources including a Direct Pay visual step‑through, a downloadable electronic‑payment guide, a client alert and FAQs.
  
  Access the AICPA’s IRS Practice & Procedures library for more guidance, tools and timely updates to support your practice and your clients.

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