One of the initiatives that NCCPAP members took to Congress in May has made traction with the IRS.  While the safe harbor provided by the IRS doesn't meet the NCCPAP's recommendation in total, this does provide relief for some gift tax return filings that would have been required without this safe harbor.

Treasury, IRS provide safe harbor for certain contributions to Trump Accounts under the Working Families Tax Cuts

IR-2026-80, June 29, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-25 providing a gift tax reporting safe harbor for certain contributions to Trump accounts created under the Working Families Tax Cuts. 

Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements for that year.

“By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules,” said IRS Chief Executive Officer Frank J. Bisignano. “The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”

Understanding your CP53E notice

As of May 2026, the IRS has sent over one (1) million CP53E notices due to a new initiative to transition from paper checks to electronic, direct-deposit refunds. While legitimate, these notices are causing confusion, with many sent in error to taxpayers not expecting refunds, or being imitated by scammers. Here are some recent FAQs from IRS.gov

What if I cannot access or create an online account? (added May 11, 2026)

You may access IRS.help.id.me for assistance in creating or accessing your online account.

How will I know if my bank account was updated successfully? (added May 11, 2026)

You will receive a confirmation message indicating your bank account update was successful. If there are any issues with your changes, you will receive an error message.  Read all messages carefully and follow any instructions given promptly.

Can I use a bank account that doesn’t belong to me, like a family member or a friend? (Added May 11, 2026)

No, the IRS requires you to use a direct deposit account under your own name or a joint account you share. If we are unable to validate your bank account information, we will issue a paper check.

What if I don’t have a direct deposit account, how will I get my refund? (Modified May 11, 2026)

Visit IRS.gov/ModernPayments to learn about other direct deposit options, such as:

• Pre-paid debit cards
• Mobile payment applications.

There are limited exception conditions to request a paper check using your online account.

What if I don’t respond to the CP53E? (Modified May 11, 2026)

If you don’t respond to the notice, we will issue a paper check after 6 weeks. For updates on your refund status, visit Where’s My Refund.

How do I know the link or QR code is safe? (Added May 11, 2026)

If you use the link or QR code, look for:

• A lock icon or “https://” at the beginning of the URL shows it’s a secure site
• Ensure “.gov” is in the URL
• Recognize tax scams and fraud

Welcome to 2026

April 1, 2026

Treasury and IRS Announce Tax Filing Relief to DHS Personnel

The U.S. Department of the Treasury, in coordination with the Internal Revenue Service (IRS), announced tax filing relief to affected personnel at the Department of Homeland Security experiencing unfair financial burdens and administrative challenges due to the ongoing shutdown.  The new deadline will be extended to May 15, 2026, for affected DHS personnel. This extension includes penalty and interest relief. Click here for the actual press release

 

How Your Tax Bill or Refund May Be Different For the 2025 Tax Year

Some changes are retroactive to the beginning of 2025. Some taxpayers may not have adjusted their withholdings or recalculated their estimated income tax obligations. One or more of these factors may reduce tax bills or increase refunds.

Interest deduction of up to $10,000 on qualified passenger vehicle loan interest
No tax on tips - If you received qualified tips, you may be able to deduct up to $25,000
Overtime - Taxpayers may be eligible to deduct up to $12,500 for qualified overtime
Senior Deduction - Seniors 65 and older may be eligible to claim an additional $6,000 deduction

Click here for IRS Publication 6140 and more information.


Crude Oil Inventories Once Again Deemed Exempt under U.S. Constitution’s Import-Export Clause
In a case challenging the ad valorem taxation of crude oil inventories held in tanks within a locality, the Texas Thirteenth Court of Appeals (Court) reversed the lower trial court’s ruling and issued summary judgment for the taxpayer that the oil at issue – which was shipped to specified foreign nations in vessels that were all foreign owned – was immune from taxation under the U.S. Constitution’s Import-Export Clause. The holding in this case is in line with the Court’s decisions from earlier this year involving similar circumstances but different taxpayers [see Case No. 13-24-00590-CV, Tex. App., 13th Dist. (1/8/26) and State Tax Matters, Issue 2026-2; and Case No. 13-24-00413-CV, Tex. App., 13th Dist. (2/12/26) and State Tax Matters, Issue 2026-7 for details on two of these earlier cases].

 

The IRS issued Fact Sheet 2026-01 on Friday to address frequently asked questions (FAQs) about the deduction for qualified overtime compensation in H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act. The FAQs focus on qualified overtime compensation and the Fair Labor Standards Act (FLSA).

 

2026 Filing Season opening announced

08 January 2026

The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of Public Law 119-21 become effective, which could impact federal taxes, credits and deductions.

The IRS will begin accepting business tax returns on January 13, 2026, at 9 a.m. Eastern Time.  The following business tax returns will be available for filing through the MeF system beginning January 18, 2026:

• Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons;
• Form 1120-H U.S. Income Tax Return for Homeowners Associations;
• Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return;
• Form 709-NA United States Estate (and Generation-Skipping Transfer) Tax Return Estate of nonresident not a citizen of the United States;
• Form 1041 U.S. Income Tax Return for Estates and Trusts.

12 November 2025

While President Trump signed the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, it only extends current funding through Jan. 30, 2026, for most agencies. Funding for the Department of Agriculture, Food and Drug Administration, Department of Defense military construction and family housing activities, and the Department of Veterans Affairs are funded through fiscal year 2026.

From the AICPA Tax Advisor

The IRS on Friday released a draft of Schedule 1-A (Form 1040), Additional Deductions, which includes sections for calculating four deductions allowed under H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, on a single form.

The form sections lay out the calculations of the deductions for tips, overtime, and car loan interest, as well as the calculation of the enhanced senior deduction. Taxpayers calculate the amount of the deductions that apply to them, add the amounts together, and include the total on line 13b of their Form 1040, U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Income Tax Return for Seniors; or line 13c of Form 1040-NR, U.S. Nonresident Alien Income Tax Return.

The form also includes a section for calculating the taxpayer’s modified adjusted gross income amount that is used in calculating the four deductions.  It’s an efficient way for the IRS to handle four deductions that expire after 2028, said Annette Nellen, Esq., CPA, CGMA, professor in the Department of Accounting and Finance at San José State University and a past chair of the AICPA Tax Executive Committee. “That just makes a little bit neater because these are temporary provisions in there for four years,” Nellen said. “Instead of creating four new forms, … they just put them all on one. From the IRS perspective, it’s not just what’s easy for us (taxpayers), but they’ve got to program their system to take all of this as well.”

While the Schedule 1-A draft seems to be designed to make filing taxes easier, the provisions of H.R. 1 regarding these deductions have restrictions and phaseouts that may cause some taxpayers who think they get the deduction to not qualify, she said. For example, taxpayers can deduct overtime required by the federal Fair Labor Standards Act only, but overtime required only by a state law could not be deducted, she said.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.

Treasury posted a preliminary list of occupations that customarily and regularly receive tips for purposes of the “no tax on tips” provision of H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act.  The official proposed list of such occupations will be part of forthcoming proposed regulations. The IRS anticipates that the official proposed list will be substantially the same as the preliminary list.

In addition to requiring that qualified tips must be received in an occupation that customarily and regularly received tips on or before Dec. 31, 2024, under the “no tax on tips” provision, tips do not qualify for the deduction if they are received in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics.

The provision in H.R. 1 allows workers in certain occupations to claim the deduction of up to $25,000 for qualified tips from tax year 2025 through tax year 2028.

08 September 2025
Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is reissuing a modified Geographic Targeting Order (GTO) to combat illicit cartel and other criminal activity, including money laundering, along the southwest border of the United States. As modified, the GTO requires certain money services businesses to file Currency Transaction Reports with FinCEN for cash transactions between $1,000 and $10,000 occurring in specific counties and ZIP codes. The terms of this GTO are effective September 10, 2025, through March 6, 2026.

News Release: https://www.fincen.gov/news/news-releases/fincen-issues-modified-southwest-border-geographic-targeting-order

Copy of the GTO: https://www.fincen.gov/system/files/2025-09/September-2025-SWB-GTO-Order-FINAL-508C.pdf

Frequently Asked Questions: https://www.fincen.gov/system/files/2025-09/FAQs-FINAL-508C.pdf

DRAFT 2026 FORM W-2 INCLUDES BOES & CODES FOR TIPS & OVERTIME!!

 

A draft version of Form W-2, Wage and Tax Statement, for 2026 includes boxes and codes for reporting qualified tips and qualified overtime compensation that can be deducted temporarily under the provisions of H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act.  For more information,see the file labeld 2026 draft w2

The AICPA has become aware of the following from members’ communication and have passed this information on to the Internal Revenue Service:

IRS CP504B erroneous intent to levy and CP161 erroneous notices to trusts on Form 1041, individuals on Form 1040 and corporations on Form 1120 on correctly paid estimated payments based on 100% of prior year liability

For more information, see the file labeled Erroneous IRS Notices Update. 

Issuance of a Geographic Targeting Order Imposing Additional Recordkeeping and Reporting Requirements on Certain Money Services Businesses Along the Southwest Border

FinCEN is issuing notice of a Geographic Targeting Order, requiring certain money services businesses along the southwest border of the United States to report and retain records of transactions in currency of more than $200 but not more than $10,000, and to verify the identity of persons presenting such transactions.

For more information:  https://www.federalregister.gov/documents/2025/03/14/2025-04099/issuance-of-a-geographic-targeting-order-imposing-additional-recordkeeping-and-reporting

FAQs Released for FinCEN Geographic Targeting Order Impacting California and Texas Border Region Money Services Businesses

The GTO dramatically lowered the Currency Transaction Report (CTR) threshold to just $200 for MSBs operating in specific ZIP codes along the southwest border. This represents a substantial change from the standard $10,000 CTR reporting requirement that most financial institutions follow.

 

For tax professionals in the affected zip codes, this order specifically impacts clients operating in:

1. Imperial County, California: 92231, 92249, 92281, 92283;
2. San Diego County California: 91910, 92101, 92113, 92117, 92126, 92154, 92173;
3. Cameron County, Texas: 78520, 78521;
4. El Paso County, Texas: 79901, 79902, 79903, 79905, 79907, 79935;
5. Hidalgo County, Texas: 78503, 78557, 78572, 78577, 78596;
6. Maverick County, Texas: 78852; and
7. Webb County, Texas: 78040, 78041, 78043, 78045, 78046.

The Following Types Of Businesses Are Likely To Be Affected:

 

 Money Services Businesses (MSBs) specifically mentioned in the order:

• Currency exchangers/money exchangers
• Check cashers
• Money transfer businesses (like Western Union, MoneyGram)
• Money order issuers and sellers
• Prepaid access providers and sellers

Other financial service providers in the affected ZIP codes:

• Convenience stores offering money transfer services
• Grocery stores with check cashing or money order
• services
• Small independent financial service providers
• obile payment service providers with cash-in/cash-out capabilities

Tax professionals with clients in the affected areas should immediately begin preparing for implementation. The drastically lower reporting threshold will likely result in a significant increase in filing requirements for MSBs in these regions. Questions about the GTO should be directed to FinCEN through their website.

Executive Order Mandating Electronic Federal Tax Refunds and Payments for Taxes

Beginning as early as September 30, 2025, the president’s March 25, 2025, executive order “Modernizing Payments To and From America’s Bank Account”  mandates all payments to and from the US Treasury be paid electronically. This includes federal tax payments and federal tax refunds.

Here is the link to the Executive Order