e-News for Tax Pros 2025-40

The Treasury Department and the IRS issued interim final regulations and a notice of proposed rulemaking to reduce the amount of the user fee imposed on tax professionals who apply for or renew a preparer tax identification number (PTIN). The IRS Return Preparer Office conducted a biennial review of the PTIN user fee in 2025 and determined the full cost of issuing or renewing a PTIN should be reduced from $11 to $10, plus $8.75 payable directly to a third-party contractor. The new fee will be effective for the start of the next PTIN renewal cycle beginning Oct. 16. Failure to have and to use a valid PTIN may result in penalties.

Treasury and IRS also invite comments and requests for a public hearing in the notice proposed rulemaking by Oct. 30, 2025. Commentors are encouraged to use the Federal e-Rulemaking portal to submit comments (indicate “IRS” and “REG-108673-25”).

2. Security Summit warns tax professionals about EFIN phishing scam

The IRS, state tax agencies and the nation’s tax industry, working together as the Security Summit and the Coalition Against Scam and Scheme Threats (CASST), warn tax professionals to be on high alert for a new wave of phishing emails targeting Electronic Filing Identification Numbers (EFINs). The scam email, reported by tax professionals this week, falsely claims: “We have identified returns filed under your Electronic Filing Identification Number (EFIN) that require review.” The message urges recipients to download and install an “IRS Transcript Summary of Data (SOD) Viewer” to examine affected returns.

The email is a phishing attempt. Tax professionals should not click on links or download any attachments from this message; doing so will infect their systems with malware and potentially allow identity thieves to steal client data.

As a reminder, all tax professionals should:

Refrain from clicking on unknown links or download files from unsolicited messages
Never provide EFIN documentation or other sensitive information via email or fax unless independently verified with the known contact information of the requesting party
Save the phishing email, including its header and report suspicious emails to [email protected]
Notify the Treasury Inspector General for Tax Administration if the email impersonates the IRS
Contact their local IRS Stakeholder Liaison immediately if they suspect data theft or system compromise

The following prior alerts and tips on spotting scams are available for review:

For more information on safeguarding your practice, visit the IRS Protect Your Clients; Protect Yourself campaign page.

3. Volunteers needed to provide no-cost tax services for the upcoming filing season

The IRS and its community partners are seeking volunteers to support the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. Volunteers often range from high school students to retirees. Anyone looking to gain invaluable professional experience while helping their community is encouraged to sign up. Tax professionals who serve as volunteers can earn CPE credits, as the VITA/TCE program is approved to provide IRS CPE credits for:

Enrolled Agents (EA)
Non-credentialed tax preparers
California Tax Education Council (CTEC)
Registered Tax Preparers (CRTP)

Visit IRS.gov/volunteers or VITA/TCE Volunteer and Partner Sign Up.

4. IRS Independent Office of Appeals starts Post Appeals Mediation pilot program

The IRS Independent Office of Appeals (Appeals) is launching a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. “Appeals is committed to offering Alternative Dispute Resolution programs as a cost-effective option for resolving cases, improving the taxpayer’s experience, and making the best use of IRS resources,” said John Hinding, Acting Chief of Appeals.

Under the new PAM pilot, cases will be reassigned to an Appeals team unconnected with the underlying case who will represent Appeals in the mediation session. Otherwise, all aspects of PAM will remain the same. This change is intended to facilitate an expedited fresh look at the case in which mediators help the parties explore all potential paths to resolution prior to potential litigation.

For questions about the PAM pilot, please contact the ADR PMO at [email protected].

5. Technical Guidance

Notice 2025-46 will provide interim guidance on the application of the Corporate Alternative Minimum Tax to domestic corporate transactions, financially troubled companies and tax consolidated groups.

Notice 2025-49 provides interim guidance on the application of the corporate alternative minimum tax.

Notice 2025-50 provides a definition for “rural area” under section 1400Z-2(b)(2)(C)(ii) of the Internal Revenue Code, as Public Law 119-21, 139 Stat. 72 (July 4, 2025) amended, commonly known as the One, Big, Beautiful Bill Act (OBBBA). This notice is also intended to provide guidance to taxpayers applying the substantial improvement provisions of section 1400Z-2(d)(2)(D)(ii), as amended by OBBBA.

Notice 2025-52 explains the circumstances under which the four-year replacement period under section 1033(e)(2) is extended for livestock sold on account of drought. The Appendix to this notice contains a list of counties that experienced exceptional, extreme, or severe drought conditions during the 12-month period ending Aug. 31, 2025.

Notice 2025-53 postpones various time-sensitive deadlines for taxpayers affected by the terrorist attacks in Israel throughout 2024 and 2025. The notice defines the covered area, identifies categories of “affected taxpayers,” and provides a list of the acts postponed. The postponement period is Sept. 30, 2025, to Sept. 30, 2026. The effect of the separate determination of terroristic action and grant of relief in this notice is to further postpone acts that Notice 2024-72 postponed until Sept. 30, 2026.

Notice 2025-54 announces the special per diem rates effective Oct.1, 2025, which taxpayers may use to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. This notice provides the special transportation industry rate, the rate for the incidental expenses only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method.

Revenue Procedure 2025-30 provides procedures for taxpayers requesting private letter rulings from the IRS on certain issues regarding transactions intended to qualify under section 355 of the Internal Revenue Code, including representations, information, and analysis that taxpayers requesting these rulings should submit to the IRS.

Thank you for subscribing to e-News for Tax Professionals an IRS e-mail service.

If you have a specific concern about your client's tax situation, call the IRS Practitioner Priority Service 1-866-860-4259.

This message was distributed automatically from the mailing list e-News for Tax Professionals. Please Do Not Reply To This Message

To subscribe to or unsubscribe from another list, please go to the e-News Subscriptions page on the IRS Web site.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need your email address to log in. If you have questions or problems with the subscription service, visit subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535