Suheyla Ciftci, CPA, Inc., A Professional Accountancy Corporation

The top 5 tips for extension filers | Internal Revenue Service Tax Tip 2026-63, Aug. 18, 2026 — Extension filers don’t have to wait until Oct. 15, 2026, to file their federal tax return.

Publication 509 (2026), Tax Calendars | Internal Revenue Service A lock () or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

NATIONAL PAYROLL WEEK IS TIME FOR A PAYCHECK CHECKUP.
WORKERS CAN REVIEW WITHHOLDING; EMPLOYERS CAN REVISIT PAYROLL TAX RESPONSIBILITIES

IR-2026-105, Sept. 4, 2026

The Internal Revenue Service encouraged workers and employers to review withholding and payroll tax responsibilities ahead of National Payroll Week.

Observed Sept. 7-11, National Payroll Week recognizes payroll professionals and the important role they play in helping ensure employees are paid accurately and on time. The observance also offers an opportunity for workers to look more closely at their paychecks and for employers to revisit important payroll responsibilities.

“Payroll professionals play an essential role in supporting America’s workers, businesses, and tax system,” said IRS Chief Executive Officer Frank J. Bisignano. “During National Payroll Week, we recognize the contributions of payroll professionals and reaffirm the IRS’s commitment to providing the tools and services they need to meet their responsibilities with confidence.”
Workers: Check withholding now

Federal income tax is generally paid throughout the year as income is earned. For employees, employers generally withhold federal income tax from each paycheck based on the employee’s earnings and the information provided on Form W-4, Employee’s Withholding Certificate.

The IRS encourages workers to check their withholding periodically, particularly after a major life or income change or when tax law changes. Events that may affect withholding include starting or leaving a job, working multiple jobs, marriage, divorce, the birth or adoption of a child, or a significant change in income.

The IRS Tax Withholding Estimator can help workers determine whether they are having too much or too little federal income tax withheld. The free online tool uses information such as recent pay statements, income, deductions, and credits to estimate federal income tax withholding.

If an adjustment is needed, workers can use the estimator results to help complete a new Form W-4 and submit it to their employer. Form W-4 should not be sent to the IRS.
Employers and payroll professionals: Keep payroll taxes on track and protected

Employers and payroll professionals play an important role in the nation’s tax system by withholding, reporting, and depositing employment taxes.

The IRS encourages employers to regularly review their payroll processes and use current IRS guidance. Key responsibilities include:
Withhold employment tax accurately: Employers generally must withhold federal income tax, Social Security tax, and Medicare tax from employees’ wages.
Deposit federal taxes electronically: Federal tax deposits must be made by electronic funds transfer. Available options include the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay for businesses, and Business Tax Account for eligible users.
File employment tax returns on time: Employers can electronically file many employment tax records, including Forms 940, 941, 943, 944, and 945.
Maintain payroll records: Employers should keep all records of employment for at least four years.
Protect payroll data: Employers and payroll professionals should verify changes to direct deposit or employee information through a trusted channel, limit access to payroll systems, use multifactor authentication, and remain alert to phishing and credential theft.

Publication 15, (Circular E), Employer’s Tax Guide provides information employers need to meet their federal employment tax responsibilities. Publication 15-T, Federal Income Tax Withholding Methods provides federal income tax withholding methods and tables.

Webinar for the payroll community:

Payroll professionals can register for the free Sept 8 webinar, IRS and Payroll Professionals – Partners in Every Paycheck, for updates on federal employment tax deposits, Trump Account employer contributions, 2026 Form W-2 reporting changes, and IRS payroll resources.

IRS resources for the payroll community:

The IRS provides resources throughout the year for employers and payroll professionals, including:
Payroll Professionals Tax Center
Understanding Employment Taxes
Tax Withholding Estimator
Publication 15, (Circular E), Employer’s Tax Guide
Publication 15-T, Federal Income Tax Withholding Methods
Business Tax Account
E-file Employment Tax Forms

Payroll professionals can also subscribe to e-News for Payroll Professionals for updates about federal payroll reporting, employment tax procedures, IRS announcements, and other developments affecting payroll tax returns.

Source: IRS

TREASURY, IRS MOVE TO END TAX-EXEMPT STATUS FOR DISCRIMINATORY PRACTICES IN PRIVATE SCHOOLS

IR-2026-103, Sep. 3, 2026

The Department of the Treasury and the Internal Revenue Service (IRS) have issued proposed regulations to end federal tax-exempt status for private schools that engage in racial discrimination, delivering on President Trump's Executive Orders ending discrimination and restoring merit-based opportunity.

“Under President Trump, this Administration is standing up for America’s students by ensuring racial discrimination has no place in American education,” said Treasury Secretary Scott Bessent. “Schools rebranding race-based preferences as equitable, inclusive, or diversity-enhancing does not change their discriminatory nature. Today’s Treasury and IRS proposed regulations establish a clear standard, and the institutions that continue to use discriminatory practices will no longer receive the benefits of federal tax-exempt status.”

“Private educational institutions that promote discriminatory practices will no longer be afforded the benefits of federal tax-exempt status,” said IRS Chief Executive Officer Frank J. Bisignano. “Today’s proposed regulations put institutions on notice and schools that continue to engage in racial discrimination should expect to lose that status.”
Background

Federal law provides tax-exempt status to organizations that operate exclusively for charitable and educational purposes. For decades, the Supreme Court has recognized that eligibility for tax-exempt status is conditioned on compliance with fundamental public policy, including the prohibition against racial discrimination.

The proposed regulations update Treasury and IRS guidance to reflect that longstanding principle, as established in Brown v. Board of Education, Bob Jones University v. United States, and Students for Fair Admissions v. Harvard, and provide greater clarity for private educational institutions regarding the nondiscrimination requirements associated with federal tax-exempt status.
Proposed regulations

Under the proposed rule, a private school would not qualify for Federal tax-exempt status under section 501(c)(3) if it adopts, maintains, or enforces a policy or practice that discriminates on the basis of race, color, or national or ethnic origin. The rule would apply across admissions, educational policies, scholarships and loans, athletics, and every other school-administered or school-supported program.

The proposed regulations would apply to tax-exempt private primary and secondary schools, colleges, universities, professional schools, and trade schools. Treasury and the IRS estimate that the proposal may affect as many as 18,000 private educational institutions.

The proposal would also eliminate outdated provisions of IRS guidance that permitted schools to favor certain racial preferences in admissions, facilities, programs, scholarships, and financial assistance.

Treasury and the IRS have concluded that these provisions are inconsistent with a uniform nondiscrimination standard and are incompatible with the Supreme Court’s case law.

The proposal would not prevent a private school from maintaining a religious mission, curriculum, or program of religious observance. Religious schools may continue to select students based on genuine religious affiliation or membership to remain consistent with existing federal law.

The proposal allows schools to continue expanding educational opportunity to assist disadvantaged students using race-neutral criteria such as family income, geographic location, first-generation status, individual hardship, military family status, or academic achievement when awarding admission or financial assistance. However, schools may not make decisions or confer benefits on the basis of race, color, or national or ethnic origin.

The final regulations would apply to taxable years beginning on or after May 31, 2027, providing affected institutions with sufficient time to review and update their policies to bring admissions, scholarship, and other policies into compliance.

Source: IRS

IRS REMINDER: DISASTER PREPAREDNESS STARTS WITH TAX RECORDS

IR-2026-104, Sept. 3, 2026

The Internal Revenue Service encouraged taxpayers to protect important tax and financial records before disaster strikes.

As part of National Preparedness Month, the IRS reminds individuals, businesses, and tax professionals to make or update emergency plans, safeguard key documents, and know where to find IRS disaster relief resources. Taking a few steps now can make it easier to recover, apply for assistance, file insurance claims, or claim disaster-related tax benefits.

“Preparing now can make a real difference when a disaster strikes,” said IRS Chief Executive Officer Frank J. Bisignano. “All taxpayers, even those in areas not prone to disaster, should take precautionary steps outlined in IRS resources to plan for the loss of valuable property and to ensure important financial records are protected.”

Disasters can happen quickly and with little warning. Floods, wildfires, hurricanes, tornadoes, severe storms, and other emergencies can damage homes, businesses, and records needed for tax, insurance, and federal assistance purposes.

Taxpayers can prepare by taking these steps:
Keep key documents safe. Taxpayers should keep tax returns, birth certificates, Social Security cards, insurance policies, property titles, and other important records in waterproof and fireproof containers.
Create electronic copies. Taxpayers should consider scanning papers records and saving electronic copies on a secure device or in the cloud. Many financial institutions also provide statements electronically.
Document valuable property. Photos or videos of homes, businesses, vehicles, and other properties can help support claims of losses of property for tax purposes, as well as insurance claims after a disaster. IRS disaster loss workbooks can help individuals and businesses compile a room-by-room list of belongings and equipment.
Review emergency plans. Taxpayers should review and update emergency plans each year. Ready.gov has resources and checklist to help individuals and businesses prepare.
Know how to access tax records. Taxpayers can use IRS Individual Online Account to access tax information, including transcripts, notices, and other records. Taxpayers who need copies of previously filed returns or transcripts after a disaster can also use Get Your Tax Records and Transcripts on IRS.gov.

Businesses should also review payroll protections. Employers who use a payroll service provider should ask whether the provider has a fiduciary bond. Eligible business taxpayers can use Business Tax Account to view balances, make payments, and view payment history. Registered Electronic Federal Tax Payment System users can continue to use EFTPS for federal tax payments.
IRS disaster tax relief may be available

When the IRS grants disaster tax relief, certain tax filing and payment deadlines that fall within the postponement period are postponed until the relief deadline. Specific relief varies by disaster, and taxpayers should review the applicable IRS disaster announcement for deadlines, returns, payments, and other actions covered.

In many cases, disaster tax relief is automatic for taxpayers whose IRS address of record is located in a covered disaster area. These taxpayers generally do not need to contact the IRS to receive relief.

Taxpayers who live outside a covered disaster area, but whose records are necessary to meet a deadline located in the affected area, will need to call the IRS Special Services Hotline at 866-562-5227 to request relief and tax practitioners should review bulk requests from practitioners for disaster relief.

Individuals and businesses that sustain uninsured or unreimbursed disaster-related losses may be eligible to claim those losses on a federal tax return, subject to applicable tax law requirements. Taxpayers should review Publication 547, Casualties, Disasters, and Thefts, for more information about casualty losses and disaster-related tax rules.
More information

Taxpayers can find current disaster relief information and resources on IRS.gov:
Around the Nation
FAQs for disaster victims
Tax Resources for Disaster Victims
Publication 547, Casualties, Disasters, and Thefts
Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)
Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook
Publication 3067, IRS Disaster Assistance - Federally Declared Disaster Area

Taxpayers can also visit DisasterAssistance.gov, Ready.gov, and FEMA.gov for additional disaster preparedness and recovery resources.

Source: IRS

TREASURY, IRS PROPOSES RULES TO PROTECT REFUNDABLE TAX CREDITS FROM ABUSE BY ILLEGAL ALIENS

IR-2026-93, Aug. 19, 2026

The Department of the Treasury and the Internal Revenue Service issued proposed regulations to apply and clarify the federal law regarding the eligibility requirements for taxpayer-funded refundable individual income tax credits, delivering on President Trump’s commitment to enforce our nation’s laws and ensuring tax benefits are reserved for American taxpayers.

“Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it,” said Treasury Secretary Scott Bessent. “American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.”

“Refundable tax credits, like the Earned Income Tax Credit (EITC), were enacted to help low-to-middle income American families and workers receive critical financial support,” said IRS Chief Executive Officer Frank J. Bisignano. “Today's proposed regulations ensure that federally funded benefits are reserved for eligible taxpayers and protect the integrity of every taxpayer dollar.”
Background

The Treasury and IRS proposed regulations to strengthen enforcement of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) by clarifying that the refunded portion of certain refundable individual income tax credits are federal public benefits and establishing clear rules governing who is legally eligible to receive them.

This action cracks down on the abuse of taxpayer-funded refundable individual income tax credits and ensures that illegal aliens and other non-qualified aliens barred by federal law do not receive public benefits, which they are ineligible to receive.

Under PRWORA, only U.S. citizens, U.S. nationals, and qualified aliens are eligible to receive federal public benefits. The proposal follows legal analysis by the Department of Justice’s Office of Legal Counsel concluding that the refunded portions of the affected credits are federal public benefits.
Proposed regulations

The proposed regulations apply PRWORA to four individual income tax credits: the adoption tax credit, the child tax credit, the American opportunity tax credit, and the earned income tax credit.

To receive the refunded portion of an affected credit:
The taxpayer must be a U.S. citizen, U.S. national, or qualified alien on the date the taxpayer files the federal income tax return first claiming the affected credit. Qualified aliens include lawful permanent residents, asylees, refugees, and certain other groups defined or specified under PRWORA.
The taxpayer must declare on the tax return, under penalty of perjury, that the taxpayer is eligible to receive the refunded portion of the credit.
For a joint return, only one spouse must be a U.S. citizen, U.S. national, or qualified alien.

Only the refunded portion of the affected credits is treated as a federal public benefit. The refunded portion is the aggregate amount of the affected refundable credits that exceeds the income tax liability imposed for the tax year. A taxpayer who is not qualified to receive the refunded portion may still claim any portion of an affected credit for which the taxpayer otherwise qualifies that generally offsets income tax liability.

The proposed regulations would apply to tax years ending on or after the date the regulations are published as final regulations.

Treasury and the IRS will seek public comments and requests for a public hearing on all aspects of the proposed regulations. Complete instructions for submitting comments are included in the proposed regulations.

Source: IRS

TREASURY, IRS ISSUE PROPOSED REGULATIONS ON ELIGIBLE INVESTMENTS FOR TRUMP ACCOUNTS UNDER THE WORKING FAMILIES TAX CUTS

IR-2026-96, Aug. 20, 2026

The Department of the Treasury and the Internal Revenue Service issued proposed regulations on eligible investments for Trump Accounts, a new type of traditional IRA under the Working Families Tax Cuts.

“These proposed regulations will provide clarity for trustees and beneficiaries of Trump Accounts, thus encouraging eligible participants to invest in low-fee mutual funds and ETFs that will grow on a tax-deferred basis potentially over their entire lives,” said IRS Chief Executive Officer Frank J. Bisignano. “Funds deposited in Trump Accounts enable American children to start investing now and enjoy years of compound earnings for their future college, retirement and other needs.”

Eligible investments for Trump Accounts:

Funds in a Trump Account may only be invested in eligible investments during the growth period, which begins when the account beneficiary’s initial Trump Account is established and ends on Dec. 31 of the calendar year in which the account beneficiary turns age 17. After the growth period, the eligible investment restrictions no longer apply.

For Trump Accounts, an eligible investment generally is a mutual fund or exchange traded fund that tracks an equity index of primarily U.S. companies, such as the S&P 500 index, does not use leverage, and has annual fees and expenses of no more than 0.1 percent of the balance of the investment in the fund.

If an account beneficiary does not select an eligible investment offered by the trustee, funds in a Trump Account automatically will be invested during the growth period in an eligible investment selected by the trustee.

The proposed regulations provide rules for determining whether an investment is an eligible investment and procedures for a trustee to ensure that funds are invested in an eligible investment. These regulations generally would apply to tax years beginning on or after Jan. 1, 2026.

Request for comments:

These proposed regulations take into account stakeholder comments regarding eligible investments that were made in response to Notice 2025-68, issued in December 2025.

Treasury and the IRS also now request additional comments from interested parties by Oct. 20, 2026. Complete instructions on submitting comments can be found in the proposed regulations.

Sign up for a Trump Account and the pilot program:

Parents, guardians, and other authorized individuals, can use IRS Individual Online Account to complete Form 4547, Trump Account Election(s) to open a Trump Account for a child with a Social Security number if the election is made before the calendar year in which the child turns age 18. If that child is a U.S. citizen born in 2025 through 2028, the parent or other individual who qualifies to make the election can check a box on Form 4547 to elect a $1,000 pilot program contribution for the child’s Trump Account.

Visit trumpaccounts.gov for more information on Trump Accounts. For more information on the provisions of the new legislation, see Working Families Tax Cuts Provisions on IRS.gov.

Source: IRS

WHAT EMPLOYERS NEED TO KNOW ABOUT THE ENHANCEMENTS TO THE PAID FAMILY AND MEDICAL LEAVE TAX CREDIT

Employers, including small businesses, that provide paid family and medical leave to their employees may be eligible for an employer tax credit. Several enhancements have been made to this credit under the Working Families Tax Cuts.

Here’s an overview of the employer credit for Paid Family and Medical Leave, including the recent changes.

What is the employer credit for PFML?

Employers who meet the requirements can claim a general business tax credit from 12.5% to 25% of wages paid to qualifying employees for up to 12 weeks of family and medical leave per taxable year.

Employers can offer up to 12 weeks of paid family and medical leave to employees for the following reasons:
Having a baby, adopting or fostering a child
Taking care of their own serious health condition or for their spouse, child, or parent
Dealing with a situation of a close relative who is a member of the Armed Forces and on covered active duty
Taking care of a close relative who is seriously ill or an injured covered servicemember

Key enhancements:
The credit is now permanent.
Expanded eligibility: Employers can claim the credit for employees with six months of service and for part-time employees working 20 hours or more per week.
Expanded coverage: Employers can claim the credit for insurance premiums paid to provide leave, or wages paid during leave.
State and local mandates: Employers can count leave provided under state or local mandates toward the eligibility for this federal tax credit, but not toward the credit calculation.

Ways to claim the credit:

Employers can claim the credit using one of these methods:
New premium-based: Based on qualifying premiums the employer paid for PFML insurance policies
Wage-based: Based on the wages paid while the employee is on PFML

Learn more about each method in Notice 2026-28. It compares the two methods, addresses how to allocate the qualifying premiums, and how to elect between the premium method and the wage method.

Source: IRS

INTEREST RATES REMAIN THE SAME FOR THE FOURTH QUARTER OF 2026

IR-2026-98, Aug. 21, 2026

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2026.

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the new rates:
7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
4.5% 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 2026. See the revenue ruling for details.

Revenue Ruling 2026-15 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2026-36, dated Aug. 31, 2026.

Source: IRS

TAX TRANSCRIPTS: KNOW THE DIFFERENT TYPES AND HOW TO GET THEM

Taxpayers may need to access their tax records or transcripts for many different reasons. It could be needed for filing a tax return, applying for a mortgage or loan, to name a couple of reasons.

There are several different kinds of tax transcripts available to taxpayers for free. Here’s what’s available, what they are and how they can be obtained.

What are the different transcript types?
Tax return transcripts show most line items from the taxpayer’s original Form 1040-series tax return, along with any forms and schedules, but doesn't show any changes made after the original return was filed. It’s available for the current and three prior tax years and is often used for life events such as mortgages or financial aid.
Tax account transcripts show basic information such as filing status, taxable income, and payment types. Unlike the tax return transcripts, this one will show changes made after the original return was filed and is generally available for the current and nine prior tax years.
Record of account transcripts combine the tax return and tax account transcripts above into one complete transcript. This transcript is available for the current and three prior tax years.
Wage and income transcripts show data from information returns we receive such as Forms W-2, 1098, 1099, and 5498. The transcript will only display information return documents that have been filed with the IRS which may not reflect all the information return documents issued to the taxpayer. This transcript is available for the current and nine prior tax years.
Verification of non-filing letter states the IRS has no record of a processed Form 1040-series tax return as of the date of the request. It doesn't indicate whether the taxpayer was required to file a return for that year. This letter is available after June 15 for the current tax year or anytime for the prior three tax years.

Ways to get transcripts:
Register to use Individual Online Account to view, print, or download all transcript types listed above.
Order a transcript by mail or call the automated phone transcript service at 800-908-9946. This typically takes between 5 to 10 calendar days for delivery.
Request any transcript listed above by submitting Form 4506-T, Request for Transcript of Tax Return.

A transcript isn't a photocopy of a taxpayer’s actual return. If a copy of the original return is needed, they can submit Form 4506, Request for Copy of Tax Return. Refer to the form for the processing time and fee.

Source: IRS