News

WASHINGTON ― The Internal Revenue Service today announced that over 1.3 million people across the nation have unclaimed refunds for tax year 2022 and face an April 15 deadline to submit their tax returns.

The IRS estimates that approximately $1.2 billion in refunds remains unclaimed for taxpayers who have not filed their Form 1040 Federal income tax return for the 2022 tax year. The IRS estimates the median refund amount is $686 for 2022, which means that half of the refunds are more than $686. This estimate does not include credits that may be applicable.

Under the law, taxpayers usually have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury.

The table below shows the number of taxpayers potentially eligible for these refunds and the estimated median refund amount by state.

By not filing a tax return, taxpayers stand to lose more than just their refund of taxes withheld or paid during 2022. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit in 2022, the EITC was worth up to $6,935 for taxpayers with qualifying children. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2022 were:



$53,057 ($59,187 if married filing jointly) for those with three or more qualifying children;
$49,399 ($55,529 if married filing jointly) for people with two qualifying children;
$43,492 ($49,662 if married filing jointly) for those with one qualifying child, and;
$16,480 ($22,610 if married filing jointly) for people without qualifying children.


The IRS reminds taxpayers seeking a 2022 tax refund that their funds may be held if they have not filed tax returns for 2023 and 2024. In addition, any refund for 2022 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loan debts.

Current and prior year tax forms, such as the tax year 2022 Forms 1040 and 1040-SR, and instructions are available on the IRS.gov Forms & Instructions page or by calling toll-free 800-TAX-FORM (800-829-3676).

Need to file a 2022 tax return? There are several options to get key documents

Although it’s been a few years since 2022, the IRS reminds taxpayers that there are ways they can still gather the information they need to file the 2022 tax return. But taxpayers should ensure they have enough time to file before the April deadline for 2022 refunds. Here are some options:



Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years, 2022, 2023 or 2024 can request copies from their employer, bank or other payers.
Use Get Transcript Online at IRS.gov. Taxpayers who are unable to get missing forms from their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. For many taxpayers, this is by far the quickest and easiest option.
Request a transcript. Another option is for people to file Form 4506-T with the IRS to request a “wage and income transcript.” A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. Plan ahead, written transcripts requests using Form 4506-T can take several weeks. Taxpayers are strongly urged to try other options first.

State-by-state estimates of individuals who may be due 2022 income tax refunds

Based on the tax information currently available, the IRS estimated how many taxpayers in each state may be entitled to a tax refund.
 























State or District
Estimated number of individuals
Median potential refund
Total potential refunds*


Alabama
 22,500
$674
$19,490,000


Alaska
 4,100
$721
$3,745,800


Arizona
 35,700
$627
$29,675,100


Arkansas
 12,600
$658
$10,655,400


California
 143,200
$680
$124,700,500


Colorado
 22,000
$697
$19,480,500


Connecticut
 12,800
$732
$11,710,500


Delaware
 5,100
$686
$4,568,200


District of Columbia
 3,000
$744
$2,831,200


Florida
 89,000
$638
$74,481,300


Georgia
 45,100
$645
$38,369,000


Hawaii
 6,600
$784
$6,263,800


Idaho
 7,200
$641
$5,897,400


Illinois
 47,800
$714
$43,017,600


Indiana
 29,500
$678
$25,531,600


Iowa
 13,700
$709
$12,090,700


Kansas
 12,800
$694
$11,211,500


Kentucky
 17,700
$669
$15,078,200


Louisiana
 19,900
$694
$17,589,700


Maine
 5,100
$733
$4,608,600


Maryland
 25,400
$739
$23,698,200


Massachusetts
 27,300
$786
$25,909,300


Michigan
 41,400
$707
$36,919,000


Minnesota
 19,400
$711
$17,116,300


Mississippi
 11,800
$635
$9,909,700


Missouri
 29,400
$654
$24,810,500


Montana
 4,700
$661
$3,991,400


Nebraska
 6,300
$703
$5,498,500


Nevada
 16,100
$652
$13,751,000


New Hampshire
 5,800
$745
$5,284,300


New Jersey
 33,400
$746
$30,821,100


New Mexico
 7,600
$700
$6,779,300


New York
 67,100
$757
$62,403,200


North Carolina
 46,200
$638
$38,329,000


North Dakota
 3,000
$774
$2,776,300


Ohio
 46,300
$669
$39,342,300


Oklahoma
 19,000
$672
$16,366,700


Oregon
 19,900
$670
$16,975,900


Pennsylvania
 48,400
$703
$42,949,800


Rhode Island
 3,600
$740
$3,243,200


South Carolina
 16,800
$642
$14,205,900


South Dakota
 3,400
$692
$2,890,100


Tennessee
 27,000
$644
$22,514,900


Texas
 126,000
$687
$111,700,000


Utah
 11,000
$659
$9,509,400


Vermont
 2,600
$719
$2,246,400


Virginia
 34,900
$695
$31,135,700


Washington
 37,500
$738
$34,728,800


West Virginia
 5,700
$756
$5,217,200


Wisconsin
 17,600
$658
$14,871,400


Wyoming
 2,600
$714
$2,352,800


Totals
 1,322,600
$686
$1,159,244,200



* Excluding credits.






















Source: IRS.gov

US TAX, U.S. TAX

Taxpayers may see a reduction in their tax bill or an increase in refunds this year. The One, Big, Beautiful Bill makes several changes for this tax filing season.
New deductions have been added, and certain credits have been updated. Some of these changes are retroactive to the start of 2025, which suggests that taxpayers may not have adjusted their withholding or recalculated their estimated income tax obligations.

Key additions and changes that may affect taxable income or a refund
New deductions


Seniors age 65 and older may be eligible to claim an additional deduction of up to $6,000. This is in addition to the current higher standard deduction for seniors under existing law.
Tipped workers may be eligible to deduct up to $25,000 for qualified tips. This limit applies per return for single filers and married couples filing jointly.
Individuals may be eligible to deduct up to $12,500; $25,000 for joint filers for qualified overtime.
Individuals may deduct up to $10,000 in qualified passenger vehicle loan interest.

It’s important for taxpayers to know that each of these deductions phase out based on income level for individual and joint filers and have specific eligibility requirements.

Updates to credits


A portion of the Adoption Credit is now refundable up to $5,000 per eligible child beginning in tax year 2025 and indexed for inflation annually.


Indian Tribal governments are now recognized to have the ability to determine whether a child has special needs for purposes of the adoption tax credit.


For taxpayers claiming the Child Tax Credit, they (or their spouse if filing jointly) and each qualifying child must have a Social Security number valid for employment and issued before the return’s due date, including extensions, to claim the CTC.


Taxpayers should maintain records to show their eligibility for any tax deductions or credits they claim. They shouldn’t be tempted by scam promoters who share misleading information while trying to promote large refunds.
The IRS Interactive Tax Assistant can help a person decide if they're eligible for many popular tax credits and deductions.
Source: IRS.gov

US TAX, U.S. TAX

The costs for continuing education can add up quickly and get expensive. There are several tax benefits such as credits and deductions that can help eligible taxpayers reduce these costs. A tax credit reduces the amount a person owes in income taxes dollar-for-dollar. Let’s look at a few of the most common ones.

Education tax credits
There are two tax credits designed to help taxpayers reduce education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit.
The taxpayer can claim one or the other but not both. Taxpayers must complete Form 8863, Education Credits and file it with their federal tax return.
To be eligible for either credit:


The taxpayer, dependent or a third party paid qualified education expenses for post high school education.
An eligible student must be enrolled at an eligible educational institution.
The eligible student is the taxpayer, taxpayer’s spouse or a dependent listed on the tax return.

Key points for AOTC and LLC
The AOTC is:


Worth a maximum benefit of up to $2,500 per eligible student
Available only for the first four years at an eligible college or vocational school
For students pursuing a degree or other recognized education credential
Partially refundable. People could get up to $1,000 back

The LLC is:


Worth a maximum benefit of up to $2,000 per tax return, per year
Available for all years of postsecondary education and for courses to acquire or improve job skills
Available for an unlimited number of tax years



Education related deductions
Deductions lower the taxable income resulting in lowering the federal income tax obligation.
Student loan interest:


Taxpayer’s modified adjusted gross income is between $85,000 and $100,000 ($170,000 and $200,000 if filing jointly)
An eligible student may deduct student loan interest paid during the year on a qualified student loan
May reduce taxable income up to $2,500

Business deduction for work-related education:


Eligible self-employed individuals, Armed Forces reservists, certain artists, and certain government officials may be able to deduct the costs of qualifying work-related education as business expenses. Individuals with a disability can deduct impairment expenses related to this education as an itemized deduction.

Source: IRS.gov

US TAX, U.S. TAX

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today provided interim guidance for taxpayers regarding the special depreciation allowance for qualified production property enacted under the One, Big, Beautiful Bill.

Notice 2026-16 PDF announces that Treasury and the IRS will issue proposed regulations on a new provision of the law allowing taxpayers to elect to take a depreciation deduction up to 100% of the unadjusted depreciable basis of any qualified production property placed in service during a taxable year. Qualified production property is, generally, nonresidential real property used by a taxpayer as an integral part of a qualified production activity. A qualified production activity is a manufacturing, chemical production, agricultural production, or refining activity that results in the substantial transformation of the property comprising a qualified product. In addition to other requirements, the special depreciation allowance only applies to qualified production property placed in service after July 4, 2025, and before Jan. 1, 2031.

The notice provides interim guidance regarding the following: definitions of qualified production property and qualified production activity, how to determine the special depreciation allowance for qualified production property, and how and when an election to treat property as qualified production property is made. The notice also explains how the depreciation recapture rules apply to property that ceases to meet the requirements to be qualified production property.

Taxpayers may rely on the guidance provided in Notice 2026-16 until proposed regulations are issued.

Treasury and the IRS also request comments on the interim guidance, including specific issues on which additional guidance is needed. Comments should be submitted within 60 days of the issuance of the notice.
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Source: IRS.gov

US TAX, U.S. TAX
 

One highlight of the IRS Nationwide Tax Forum Online (NTFO) is the seminar Partnerships and Non-resident Alien Withholding: Sections 1446(a) and 1446(f). This session explains what partnerships with a foreign partner need to know the withholding, reporting and other requirements. It also explains what partnerships should do when the foreign partner sells its interest in the partnership.
All NTFO self-study seminars cost $29 each. Tax pros can earn one continuing education credit for each NTFO self-study seminar or audit a presentation for free. For more information, visit irstaxforumonline.com.
​​​​​​

















 

Source: IRS.gov

US TAX, U.S. TAX
 

The IRS continues to post early release versions of various tax forms and instructions to IRS.gov. Tax professionals can review the draft instructions for Form 1040 along with updated draft instructions for Form 1040 Schedule C, Schedule D, Schedule E, Schedule F and other schedules. Tax professionals can also find draft instructions for Form 941, Form 990, Form 1120, Form 1120-S and many others.
Tax professionals should not file draft forms and not rely on information in draft instructions or publications.
The IRS welcomes comments on tax products.
​​​​​​

















 

Source: IRS.gov

US TAX, U.S. TAX
 

The Department of the Treasury and the Internal Revenue Service provided guidance on the “No Tax on Car Loan Interest” provision enacted under the One, Big, Beautiful Bill.
The proposed regulations relate to a new deduction for interest paid on vehicle loans incurred after Dec. 31, 2024, to purchase new made-in-America vehicles for personal use. This new tax benefit applies to both taxpayers who take the standard deduction and those who itemize deductions.
To help tax professionals and their clients take advantage of this new tax benefit, the guidance addresses important eligibility criteria, including:


Providing rules relating to new vehicles eligible for the deduction, including for determining if the final assembly of a vehicle occurred in the United States;
Providing rules for determining which vehicle loans qualify and the amount of interest paid on a loan that may be deductible;
Providing rules for determining if a new vehicle is purchased for personal use; and
Identifying taxpayers who can take the deduction and clarifying the $10,000 annual deduction limit.





 






















The IRS previously announced transition guidance for certain lenders and other taxpayers receiving interest for vehicle loans in 2025. In general, those persons must file information returns with the IRS to report interest received during the tax year and other information related to the loan. These information returns enable taxpayers to claim the benefits of the vehicle loan interest deduction. To help lenders implement these information reporting requirements, the proposed regulations clarify:


Which lenders and other interest recipients are required to report and the time and manner for this reporting; and
What information must be included on the form provided to the IRS and to taxpayers.


Treasury and the IRS invite comments from the public on these proposed regulations by Feb. 2, 2026. Tax professionals can submit comments through Regulations.gov. The proposed regulations include instructions for submitting comments.
For more information, see One, Big, Beautiful Bill provisions on IRS.gov.
 







Source: IRS.gov

US TAX, U.S. TAX
 

WASHINGTON — The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical
purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.
 
Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One, Big, Beautiful Bill, certain members of the intelligence community.
 
Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:


72.5 cents per mile driven for business use, up 2.5 cents from 2025.
20.5 cents per mile driven for medical purposes, down a half cent from 2025.
20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.





The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.
While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.
 
Under the law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists, and eligible educators. Alternatively, eligible educators may claim an itemized deduction for certain unreimbursed employee travel expenses. In addition, only taxpayers who are members of the military on active duty or certain members of the intelligence community may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.





















Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.
 
Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.
 
For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.
 
Notice-2026-10 contains the optional 2026 standard mileage rates, as well as the maximum automobile cost used to calculate mileage reimbursement allowances under a fixed-and variable rate plan. The notice also provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in 2026 for which employers may calculate mileage allowances using a cents-per-mile valuation rule or the fleet-average-valuation rule.








 







Source: IRS.gov

US TAX, U.S. TAX
 

In this edition

The IRS is providing implementation guidance on the One, Big, Beautiful Bill. Below are the expansions and changes to deductions affecting taxpayers as they prepare for the filing season.

Car Loan Interest

Key takeaways about this deduction:


Effective 2025 through 2028
Up to $10,000 per year for interest on qualified new vehicle loans
Phase-out begins at modified adjusted gross income of:

$100,000 for single filers
$200,000 for joint filers




Standard Desuction Increases

The standard deduction increases for tax year 2026, to:


$32,200 for married couples filing jointly
$16,100 for single filers and married individuals filing separately
$24,150 for heads of household


Deduction for Seniors

Key takeaways about this deduction:


Additional $6,000 per taxpayer aged 65 or older
$12,000 if both spouses qualify
Phase-out begins at modified adjusted gross income of:

$75,000 for single filers
$150,000 for joint filers





















No Tax on Overtime

Key takeaways about this deduction:


It applies only to the overtime premium portion of wages
Modified adjusted gross income caps annually at:

$12,500 for single filers
$25,000 for joint filers




No Tax on Tips

Key takeaways on tips deduction for tax year 2026:


Up to $25,000 of qualified tip income is deductible
Phase-out begins at modified adjusted gross income of:

$150,000 for single filers
$300,000 for joint filers



 







Source: IRS.gov

US TAX, U.S. TAX
 

IN GENERAL
Under the Taxpayer Bill of Rights, all taxpayers have the right to representation before the IRS by a representative of their choice. See Publication 1 (Rev. 9-2017), Your Rights as a Taxpayer. Taxpayers are also entitled by Internal Revenue Code (IRC) 6103(c) to designate another person to receive or inspect the taxpayer’s tax returns or “return information” (as defined in the statute) by making a request to the IRS for, or a consent to, the disclosure to the person. The IRS, however, must withhold any return information when the agency determines that disclosure of the information would seriously impair federal tax administration. See IRC 6103(e)(7).

NECESSARY AUTHORIZATIONS, THEIR TYPES, AND METHODS OF SUBMISSION

Overview of Authorizations
A. Before an eligible tax practitioner can represent and act on behalf of a taxpayer before the IRS, the practitioner must file a Form 2848, Power of Attorney and Declaration of Representative, with the agency, or an equivalent power of attorney. See section 601.504(a) of the Statement of Procedural Rules (describing the “[s]ituations in which a power of attorney is required”). A valid authorization is needed, accompanied by a declaration of representative as described in Procedural Rule 601.502(c). When properly completed, Form 2848 includes all necessary elements. Proc. R. 601.503(b)(1). The necessary elements are listed in section 601.503(a)(1)-(6). By signing a Form 2848, a taxpayer authorizes the “representative(s) to receive and inspect my confidential tax information and to perform acts I can perform with respect to the tax matters described . . . .” (Line 3). In Part II of the form, Declaration of Representative, the representative attests to their eligibility to represent the taxpayer(s) identified in Part I of the form and the representative’s designation (a thru r). Most representative are attorneys, certified public accounts (CPAs), and enrolled agents (EAs) (designations a, b, and c, respectively). These professionals are “practitioners” under Treasury Circular No. 230, Regulations Governing Practice before the Internal Revenue Service (31 CFR Subtitle A, Part 10).

A “practitioner” is defined in Circular 230 section 10.2(a)(5), in conjunction with sections 10.3(a)-(e) and 10.2(a)(1), (a)(2). Besides the three already mentioned, practitioners include enrolled retirement plan agents (ERPAs) (designation r) and enrolled actuaries (designation e). Tax return preparers granted limited practice privileges under the IRS's voluntary Annual Filing Season Program (AFSP) can act as representatives (designation h, “Unenrolled Return Preparer”) in examinations of tax returns that the preparer prepared and signed.

B. In addition to submitting a Form 2848, a practitioner (or other tax professional) can submit a more limited authorization request, namely, Form 8821, Tax Information Authorization (TIA), which can be used to designate any third party to receive and inspect account information for the tax matter(s) and tax year(s) specified. IRM 21.3.7.5(2) (09-08-2016). A Form 8821 or other TIA operates, under IRC 6103(c), as a written request for or consent to disclosure of a taxpayer’s confidential tax information to a person that the taxpayer designates. 26 CFR 601.501(b)(15) (defining a tax information authorization as a “document signed by the taxpayer authorizing any individual or entity (e.g., corporation, partnership, trust, or organization) designated by the taxpayer to receive and/or inspect confidential tax information in a specified matter). As mentioned, section 6103(c) authorizes disclosure, subject to requirements and conditions prescribed by regulations, of a taxpayer’s return or “return information” to the “person or persons as the taxpayer may designate[,]” unless federal tax administration would be seriously impaired.

Unlike a Form 2848 representative, the designee on a Form 8821 need not be an attorney, CPA, IRS enrolled practitioner, or AFSP participant. But more significantly, a Form 8821 or other TIA does not authorize a designee to:

speak on the taxpayer’s behalf, other than appear as a witness for the taxpayer or to provide information to the IRS, typically in response to a request for the information (Circular 230 section 10.8(b); 26 CFR 601.501(b)(13));
execute a request to allow disclosure of returns or return information to another third party;
advocate the taxpayer’s position regarding federal tax laws;
execute waivers, consents, or closing agreements; or
represent the taxpayer in any other manner before the IRS.
C. Adequately completed authorizations specify the tax periods, taxes (income, employment, excise, etc.), and tax forms, as applicable, to which they relate. And, upon receipt by the IRS, the authorizations are recorded on the Central Authorization File (CAF), which is the IRS’s “computerized system of records which houses authorization information from both powers of attorney and tax information authorizations” and “contains several types of records, among them taxpayer and representative’s records, tax modules and authorizations.” IRM 21.3.7.1.1(1) (03-15-2023).

To enhance taxpayer confidentiality and to facilitate interaction between practitioners and IRS personnel, each practitioner (or other filer) is assigned a nine-digit CAF number when they file their first authorization with the IRS. CAF numbers differ from a tax practitioner’s or other tax professional’s preparer tax identification number (PTIN). Once they’ve been assigned their CAF number, the holder of the number should use it on all future Forms 2848 and 8821 that they file.

Providing Authorizations to the IRS




















Traditional Submission/Filing
Historically, tax professionals were obliged to use an all-paper process for filing authorizations, sending hand-signed Forms 2848 by mail or fax. These forms were generally sent to the appropriate CAF Unit for processing. The CAF Unit then manually entered the information from the form into the CAF system. Currently, tax professionals can continue to use this all-paper process to file authorizations. The Instructions to Form 2848 list the submission mailing addresses and fax numbers, which depend on the taxpayer’s location. Alternatively, a practitioner could, and still can, choose to transmit or deliver a Form 2848 directly to an IRS employee handling the matter(s) that are subject of the practitioner’s representation (for example, a Revenue Agent (who’s assigned to the represented taxpayer’s examination), Revenue Officer, Appeals Officer, or other IRS personnel) instead of the CAF Unit.

Options Expanded Following the Taxpayer First Act
In response to the Taxpayer First Act of 2019 (Pub. L. No. 116-25), in January 2021, the IRS established uniform standards and procedures for the acceptance of taxpayers’ electronic signatures, by expanding the submission options for Forms 2848 and 8821 through the use of the Taxpayer Digital Communication (TDC) Secure Messaging portal available on IRS.gov: Submit Forms 2848 and 8821 Online. In conjunction with the creation of the TDC portal submission option, the IRS adopted rules for using electronic signatures on these forms. Currently, the portal is the only allowable method for filing Forms 2848 and 8821 bearing electronic signatures.

In July 2021 the IRS subsequently further expanded the online submission options through the launch of Tax Pro Account, which allows tax professionals to complete, electronically sign, and submit power-of-attorney and TIA requests to their individual clients’ online accounts (which are necessary to use Tax Pro Account) where the taxpayers can review and electronically approve (and execute) or reject the requests. Tax Pro Account is directly integrated with the CAF to allow real-time processing of authorizations. Most authorizations are active immediately because the system is fully automated, reducing the time required for tax professionals to obtain access to the information they need to represent or otherwise provide services to taxpayers.

Current State
In sum, at present, practitioners have several options to submit authorizations to the IRS to formalize their representation of a client before the IRS or obtain access (as a disclosure designee) to a client’s tax information to assist the client Practitioners can use:

the legacy process (fax/mail);
the online submission portal; or
the Tax Pro Account.
Both the online portal and Tax Pro Account utilize the modernized IRS digital identity platform and align with requirements outlined in IRM 10.10.1, IRS Electronic Signature (e-Signature) Program.

CONCLUSION
A practitioner’s options for submitting authorization requests are summarized below. The time required to process paper forms and the limitations on the acceptance of faxed forms, unless they contain the taxpayer’s handwritten (wet) signature, underscore the value and efficiency of the online portal and Tax Pro Account. Moreover, because forms submitted through the online portal are processed by CAF Unit personnel on a first-in, first-out basis (along with faxed and mailed forms), Tax Pro Account’s real-time processing of authorizations, on the other hand, will make it the preferable option when time is of the essence.

- Use Tax Pro Account

Submit authorization request to taxpayer's online account.
    ♦ All-digital submission
    ♦ Online identity verification and authentication*
    ♦ Real-time processing

Use for —
    ♦ Individual taxpayer with online account ONLY **

Note—
    ♦ Limited tax matters and periods
    ♦ Prior authorizations revoked for same tax matters or periods

* See IRM 21.2.1.58 (11-25-2024), “Secure Access Digital Identity (SADI)”
** At the time of this publication. Check Tax Pro Account website for current capabilities.

- Submit Forms Online

Submit Forms 2848 and 8821 online to the IRS.
    ♦ Secure form upload
    ♦ Electronic or handwritten signature acceptable*
    ♦ First-in, first-out processing

Use for —
    ♦ Individual or business taxpayer
    ♦ Any tax matter or period

Note—
    ♦ Prior authorizations can be retained or revoked

* If taxpayer electronically signs in a remote transaction (i.e., taxpayer and practitioner are at separate locations at time of signing), taxpayer’s identity must be authenticated.

- Fax or Mail Forms

If you can’t use an online option, you can fax or mail authorization forms to the IRS.
    ♦ Paper forms by fax or mail
    ♦ Handwritten signature only
    ♦ First-in, first-out processing

Use for—
    ♦ Individual or business taxpayer
    ♦ Any tax matter or period

Note—
    ♦ Prior authorizations can be retained or revoked









Source: IRS.gov

US TAX, U.S. TAX
 

WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025.
The IRS today also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67, posted today on IRS.gov.

Highlights of changes for 2026
The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025.
The limit on annual contributions to an IRA is increased to $7,500 from $7,000. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment is increased to $1,100, up from $1,000 for 2025.
The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025. Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.
The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2026.
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase‑out ranges for 2026:


For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

















Other phase-out ranges and limitations
The notice also provides limitations for 2026 for Roth IRAs, the Saver’s Credit and SIMPLE retirement accounts.


The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025. For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000, up from $16,500 for 2025. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100, up from $17,600 for 2025.
The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.






Source: IRS.gov

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The One, Big, Beautiful Bill (OBBB) (Public Law 119-21, 139 Stat. 72 (July 4, 2025)), accelerated the termination of the Clean Vehicle Credit, sections 30D, 25E, and 45W.
On August 21, 2025, IRS issued frequently asked questions (FAQs) in Fact Sheet 2025-05 relating to the modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under OBBB.
Key points in the FAQs include:


New user registrations for the Clean Vehicle Credit program, through the Energy Credits Online (ECO) portal, closed on September 30, 2025.
The ECO portal will remain open beyond September 30, 2025, for limited usage by previously registered users to submit time of sale reports and updates to such reports, such as when there has been a returned vehicle.

When submitting time of sale reports, they should submit supporting documents such as the complete vehicle deal jacket and any documents pertaining to the clean vehicle credit, which may expedite the review process.



















Important reminders for repayments – IRS reissuing Pay.gov invoices for unpaid advance payments for vehicle returns or cancellations:


When a dealer submits a return or cancels a time of sale report, they must repay the advance payment of the credit received at the original time of sale.
Pay.gov electronically sends an invoice and access code to the email address associated with the dealer’s advance payment registration. Payment will not be automatically debited.
When the invoice is received, the dealer should promptly repay the advance payment within 30 days of receipt of the invoice.
Advance payments for new time of sale report submissions will only be paid out for that vehicle after the dealer first repays the IRS any advance payment for a returned or cancelled time of sale report.
If a dealer is unable to locate the email containing the invoice and access code, please contact the IRS at irs.clean.vehicles.dealer.info@irs.gov to request a new one.


For more information on the expiration of the clean vehicle credits, please see Fact Sheet 2025-05.




Source: IRS.gov

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