e-News for Small Business Issue 2025-21

The IRS and its Security Summit partners kickoff National Tax Security Awareness Week. This is a campaign to raise awareness about tax-related identity theft and scams as the holidays and tax season approach.

Businesses and tax pros should be extra aware of these threats:

Social media scams: Bad tax advice on social media can mislead taxpayers about their credit or refund eligibility. Influencers may convince taxpayers to lie on tax forms or suggest the IRS is keeping a tax credit secret from them. Social media posts may put taxpayers in touch with scammers.
Phishing and smishing: The IRS frequently warns against phishing emails and smishing texts, which are common tactics used by criminals to steal personal and financial information. The impersonator wants taxpayers to send them money. Opening links and attachments may harm their computer.
Protection for seniors: Scammers target people over age 65 or nearing retirement for personal or financial information or money. Often, once seniors give them money, they ask for more. When scammers trick them to withdraw from their retirement account, it could affect their taxes.
Protections for businesses and tax professionals: The IRS reminds tax professionals of their legal obligation to have a Written Information Security Plan and to use multi-factor authentication. Businesses are also advised to update their security measures and remain vigilant against cyberattacks.
Identity Protection PIN: An identity protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayers Social Security number or individual taxpayer identification number. If taxpayers don't already have an IP PIN, they may get an IP PIN as a proactive step to protect themselves from tax-related identity theft. Anyone with an SSN or an ITIN can get an IP PIN including individuals living abroad.

For more information visit Security Summit.

IRS ask for public comments on new federal tax credit under One Big, Beautiful, Bill

Treasury and the IRS need public input before implementing a new tax credit under OBBBA. This credit applies to individual contributions made to certain organizations that grant scholarships to elementary and secondary school students; particularly those from low-and middle-income families.

The IRS needs feedback from interested parties on policies and procedures implemented by States to ensure that the required certification is accurate and complete. The feedback will help the IRS design the rules in their request and identify issues that should be addressed in subsequent guidance.

The deadline to submit comments through a public portal is Dec. 26, 2025. The tax credit will be effective Jan. 1, 2027.

IRS issues guidance on Trump Accounts

Treasury and the IRS recently announced regulations and guidance on Trump Accounts, which are a new type of individual retirement account for eligible children.

The Working Families Tax Cuts allows a Trump Account to be established on behalf of every eligible child by a parent or guardian, as long as the child doesn’t turn 18 before the end of the calendar year in which the account is established. Contributions to Trump Accounts can’t be made before July 4, 2026.

The federal government will make a one-time $1,000 contribution to the Trump Account of each eligible child. The child must be U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028.

An employer may contribute to a Trump Account of the employee or the employee’s dependent up to $2,500 per year. Any employer contribution counts against the $5,000 annual limit. But contribution will not count toward the employee’s taxable income.

For more information see this news release.

Other tax news

The following information may be of interest to individuals and groups in or related to small businesses:

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