e-News for Tax Professionals 2025-49

Authorized IRS e-file providers should review the updated Publication 3112, IRS e-file Application and Participation, to become familiar with the requirements for acceptance and continued participation.

Important tips to remember:

When offering software for resale (rebranding, white label, etc.), the user should use the EFIN of the purchaser, not the reseller.
When adding a new person, IRS e-file providers must resubmit their e-file application for processing.

2. IRS-CI Issues Fiscal Year 2025 Annual Report

IRS Criminal Investigation (IRS-CI) released its Fiscal Year 2025 Annual Report, showcasing banner investigative results fueled by new partnerships and innovative financial investigative techniques. The report details how IRS-CI’s approximately 3,000 employees worked to safeguard the global financial system and identify $10.59 billion in financial crimes during Fiscal Year 2025.

One new initiative IRS-CI announced this year is CI-FIRST (Feedback in Response to Strategic Threats), a flagship public-private partnership to modernize how IRS-CI works with financial institutions. CI-FIRST addresses Bank Secrecy Act challenges by providing feedback to help banks understand what is most helpful to investigators. IRS-CI’s Optimizing Financial Records Requests initiative, commonly known as OFRR, accelerates investigative timelines by streamlining and standardizing how IRS-CI requests and how financial institutions respond to legal and subpoena requests.

Tax professionals should review case examples in the report to learn how IRS-CI investigators stop tax fraud and other financial crimes. They can then help steer their clients away from potential schemes.

3. Upcoming Webinars for Tax Professionals

Join the IRS for three free webinars in January.

Topic: Law and Audit – The Due Diligence Process
Date: Wednesday, Jan. 14, 2026
Time: 1 p.m. Eastern, Noon Central, 11 a.m. Arizona & Mountain, 10 a.m. Pacific, 9 a.m. Alaska, 8 a.m. Hawaii
Duration: 60 minutes including live Q&A
CE credit category: One (1.0) federal tax law credit
Learn how to:
- Apply the four following paid preparer due diligence requirements for tax year 2025 returns prepared for clients:
  - Knowledge Requirement
  - Worksheet Requirement
  - Form 8867 Completion and Submission
  - Record Retention
- Explain the IRS’s methods for contacting paid preparers and the due diligence audit process.
- Identify online educational tools and resources available on IRS.gov.

Topic: Stand out as a trusted tax professional – A guide to prepare accurate refundable tax credit returns for your clients
Date: Thursday, Jan. 15, 2026
Time: 1 p.m. Eastern, Noon Central, 11 a.m. Arizona & Mountain, 10 a.m. Pacific, 9 a.m. Alaska, 8 a.m. Hawaii
Duration: 60 minutes including live Q&A
CE credit category: One (1.0) federal tax law credit
Learn how to:
- Explain the tax year 2025 eligibility rules for tax returns claiming:
  - Earned Income Tax Credit (EITC)
  - Child Tax Credit (CTC), Additional Child Tax Credit (ACTC) and Credit for Other Dependents (ODC)
  - American Opportunity Tax Credit (AOTC)
  - Head of Household (HOH) filing status
- Recognize the impact of benefits when a young adult living with a parent files independently and claims credits, and how a young adult should determine dependency status.
- Identify IRS online resources.

Topic: 2025 Adoption Tax Credit
Date: Wednesday, Jan. 21, 2026
Time: 2 p.m. Eastern, 1 p.m. Central, Noon Arizona & Mountain, 11 a.m. Pacific, 10 a.m. Alaska, 9 a.m. Hawaii
Duration: 60 minutes including live Q&A
CE credit category: One (1.0) federal tax law credit
Learn how to:
- Identify who qualifies for the adoption credit and which expenses count.
- Describe how the refundable and nonrefundable credit amounts work.
- Recognize when to claim based on rules for special needs children and foreign adoptions.
- Understand what records and documents taxpayers should keep to help calculate the credit when they file an income tax return.

Each webinar is offered with closed captioning in English.

Direct any questions to [email protected].

4. States May Make an Advance Election to Participate in New Tax Credit

The Department of the Treasury and the Internal Revenue Service issued Revenue Procedure 2026-06 allowing states, including the District of Columbia, to make an Advance Election to participate in a new tax credit for calendar year 2027. This new credit, established under the One, Big, Beautiful Bill, is for contributions to Scholarship Granting Organizations (SGOs) that serve elementary and secondary school students from low- and middle-income families.

Tax professionals can inform clients that, beginning Jan. 1, 2027, individual taxpayers may claim a nonrefundable federal tax credit for cash contributions to SGOs providing scholarships for elementary and secondary education expenses. The credit allowed to any taxpayer is limited to $1,700; however, for contributions to an SGO to be eligible for this credit, one or more covered states must list the SGO for the applicable calendar year. A covered state is defined as one of the states, or the District of Columbia, that, for a calendar year, voluntarily elects to participate in the credit and identifies SGOs in the state.

Revenue Procedure 2026-06 provides that a state may choose to be a covered state for calendar year 2027 before it provides the IRS with a list of the SGOs located in the state, allowing SGOs additional time to prepare for the commencement of this new credit in 2027. Notice 2025-70 provides additional guidance and a request for comments regarding state SGO lists and certifications necessary for state elections.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.

5. 2025 Nationwide Tax Forum Online: Disaster Reporting Best Practices

One of the highlighted seminars of the IRS Nationwide Tax Forum Online (NTFO) is Disaster Reporting Best Practices – Maximizing Resources from A to Z. This seminar explains the tax implications of disasters, including the postponement of filing requirements, the calculations of disaster-related losses and essential recordkeeping practices. It also outlines common mistakes that cause delays in processing tax returns claiming disaster losses.

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.

6. Tax Relief in Disaster Situation: Leech Lake Band of Ojibwe

The Internal Revenue Service announced tax relief for individuals and businesses in the Leech Lake Band of Ojibwe Tribal Nation affected by severe storms and straight-line winds that began on June 21, 2025. These taxpayers now have until Feb. 2, 2026, to file various federal individual and business tax returns and make tax payments. Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business on the Leech Lake Reservation in Minnesota qualify for tax relief.

7. Technical Guidance

Revenue Ruling 2026-01 includes the covered compensation tables effective Jan. 1, 2026.

Notice 2026-02 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for November 2025 used under § 417(e)(3)(D), the 24-month average segment rates applicable for December 2025, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Revenue Ruling 2026-02 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. The IRS publishes these rates monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Procedure 2026-09 publishes the amounts of unused housing credit carryovers allocated to qualified states under § 42(h)(3)(D) of the Internal Revenue Code for calendar year 2025.

Revenue Procedure 2026-06 (mentioned above), Revenue Ruling 2026-01 and Notice 2026-02 will be in Internal Revenue Bulletin 2026-02, dated Jan. 5, 2026. Revenue Ruling 2026-02 will be in Internal Revenue Bulletin 2026-3, dated Jan. 12, 2026. Revenue Procedure 2026-09 will be in Internal Revenue Bulletin 2026-4, dated Jan. 20, 2026.

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