Bookmark and Share [ [link removed] ]

IRS.gov Banner

e-News for Tax Professionals



February 2, 2026




Issue Number:  2026-05

Inside This Issue

*
IRS requests applications for 2026 ETAAC membership [ #First ]

*
IRS issues FAQs about Executive Order 14247: Modernizing Payments To and From America’s Bank Account [ #Second ]

*
Treasury, IRS issue FAQs about the new deduction for qualified overtime compensation [ #Third ]

*
Simple Payment Plans have expanded to businesses [ #Fourth ]

*
National Taxpayer Advocate delivers Annual Report to Congress [ #Fifth ]

*
2025 Nationwide Tax Forum Online: How to help taxpayers avoid abusive tax promotions and abusive return preparers [ #Sixth ]

*
Reminder: VDP comment period [ #Seventh ]

*
Did you know? IRS tax tips [ #Eighth ]

*
Technical guidance [ #Ninth ]

________________________________________________________________________

*1.  IRS requests applications for 2026 ETAAC membership*

________________________________________________________________________

The IRS is accepting applications [ [link removed] ] for the Electronic Tax Administration Advisory Committee [ [link removed] ] through Feb. 28, 2026.

The ETAAC is an organized public forum for discussing issues in electronic tax administration, such as the prevention of identity theft and refund fraud. The committee supports the overriding goal that paperless filing should be the preferred and most convenient method of filing tax and information returns.

ETAAC members work closely with the Security Summit [ [link removed] ], a joint effort of the IRS, state tax administrators, and private-sector tax partners to fight electronic fraud and tax-related identity theft.

The IRS is seeking qualified individuals to serve three-year terms, beginning in September 2026. Tax professionals should consider applying. The IRS also strongly encourages applications from people representing the viewpoints of average taxpayers, including consumer advocates and others with an interest in tax issues.

Organizations and individuals may submit nominations of qualified individuals by letter. Applicants need to complete the ETAAC application [ [link removed] ] and include a statement of interest and a resume. Applicants must also complete and submit a tax check waiver form and undergo an IRS practitioner background check. Applicants deemed “best qualified” will also undergo an FBI background check. Information on the tax check waiver will be provided upon receipt of the application.

ETAAC is a Federal Advisory Committee established by the Internal Revenue Service Restructuring and Reform Act of 1998.

Questions about the ETAAC and the application process can be emailed to [email protected].

Back to top [ #top ]

________________________________________________________________________

*2.  IRS issues FAQs about Executive Order 14247: Modernizing Payments To and From America’s Bank Account*

________________________________________________________________________

The Internal Revenue Service issued frequently asked questions [ [link removed] ] to help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernizing Payment To and From America’s Bank Account [ [link removed] ].

These changes apply to:


*

Payments sent by the federal government, including tax refunds, benefits, grants, and vendor or contractor payments; and


*

Payments made to the federal government, including tax balances due, fees, penalties, and other payments from individuals, businesses, nonprofit organizations, and state or local partners.

Tax professionals should encourage their clients to:


*

Use direct deposit [ [link removed] ] for refunds by providing accurate bank or prepaid debit card information when filing.


*

Choose electronic payment options when paying taxes, such as IRS Direct Pay [ [link removed] ], Electronic Federal Tax Payment System [ [link removed] ], or other approved methods.


*

Review account information to ensure bank details are current and correct.


*

Visit IRS.gov to learn about electronic payment [ [link removed] ] options and available resources for taxpayers without a bank account.

For more information about how the IRS is implementing the Executive Order, visit Modernizing Payments To and From America’s Bank Account [ [link removed] ] on IRS.gov.

A paper check with a dinosaur claw mark through it. Text: ‘Leave paper behind. IRS is phasing out paper refund checks.’ IRS logo also displayed.

Back to top [ #top ]

________________________________________________________________________

*3.  Treasury, IRS issue FAQs about the new deduction for qualified overtime compensation*

________________________________________________________________________

The Department of the Treasury and the IRS also issued frequently asked questions [ [link removed] ] related to the new deduction for qualified overtime compensation under the One, Big, Beautiful Bill.

For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the amount that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) and is reported on a Form W-2 or Form 1099.

These FAQs contain additional information about the deduction, provide resources assist tax professionals in determining whether their employees received qualified overtime compensation under the Fair Labor Standards Act. The FAQs also contain useful information regarding the differences in reporting requirements for tax year 2025 and 2026-2028.

A red block with word “OVERTIME” next to red alarm clock. Text: ‘Worked overtime? You may qualify for a new tax deduction’ IRS logo also displayed.

Back to top [ #top ]

________________________________________________________________________

*4.  Simple Payment Plans have expanded to businesses*

________________________________________________________________________

The IRS recently updated qualifications for Simple Payment Plans [ [link removed] ], formerly known as “Streamlined Installment Agreements,” to include business taxpayers. Simple Payment Plans are long-term payment arrangements available for qualified taxpayers.

On Dec. 3, 2025, the IRS updated how it processes business installment agreements. Now both the In-Business Trust Fund Express Agreement and the Business Streamlined Agreement are now processed under the updated Simple Payment Plan qualifications.

*General qualifications*

All applicants for a Simple Payment Plan must be current with all filing and payment requirements.

*Businesses*

With trust fund taxes [ [link removed] ]:


*

$25,000 or less in assessed taxes, penalties, and interest, or


*

$50,000 or less in assessed taxes, penalties, and interest for an out-of-business sole proprietorship

Without trust fund taxes [ [link removed] ]:


*

$50,000 or less in assessed taxes, penalties, and interest

*Individuals*


*

$50,000 or less in assessed taxes, penalties, and interest

If a client does not qualify for a Simple Payment Plan, they may still qualify for another type of payment plan [ [link removed] ].

*How to Apply*

To apply for a Simple Payment Plan, businesses or their representatives can call the IRS at 800-829-4933 [ tel:800-829-4933 ] or visit their local Taxpayer Assistance Center (TAC) [ [link removed] ]. Individuals can still sign in to their IRS online account [ [link removed] ] or call the IRS at the number on their notice or 800-829-1040 [ tel:800-829-1040 ].

For more information about Simple Payment Plans, including payment terms and methods of payment, see the Simple Payment Plans for individuals and businesses [ [link removed] ] page on IRS.gov.

Back to top [ #top ]

________________________________________________________________________

*5.  National Taxpayer Advocate delivers Annual Report to Congress*

________________________________________________________________________

National Taxpayer Advocate’s 2025 Annual Report to Congress [ [link removed] ] is now available.

National Taxpayer Advocate Erin M. Collins released [ [link removed] ] her 2025 Annual Report to Congress [ [link removed] ] on January 28. The report acknowledges improvements in IRS taxpayer service but also highlights upcoming challenges, particularly with delays in processing amended returns and confusion surrounding the phasing out of paper refund checks.

The Advocate’s report identifies the ten most serious problems taxpayers are experiencing in their dealings with the IRS and makes administrative and legislative recommendations to address those problems. Some key points include recommending credentials for paid tax return preparers, improvements to the Tax Pro Account, and ways IRS can help stop the spread of tax misinformation online.

Please visit TaxpayerAdvocate.IRS.gov/AnnualReport2025 [ [link removed] ] for more information.

Subscribe [ [link removed] ] to receive the National Taxpayer Advocate’s blogs about key issues in tax administration throughout the year or visit TaxpayerAdvocate.IRS.gov [ [link removed] ] to read her previous blogs [ [link removed] ].

Back to top [ #top ]

________________________________________________________________________

*6.  2025 Nationwide Tax Forum Online: How to help taxpayers avoid abusive tax promotions and abusive return preparers*

________________________________________________________________________

One highlighted session from the IRS Nationwide Tax Forum Online (NTFO) [ [link removed] ] is How to Help Taxpayers Avoid Abusive Tax Promotions and Abusive Return Preparers [ [link removed] ]. In this session, the IRS Offices of Fraud Enforcement and Promoter Investigations discuss the IRS’s efforts to address fraud schemes, abusive tax promotions and abusive return preparers. Participants will learn how to protect clients from fraudulent schemes, abusive promotions and return preparers, as well as how to report these to the IRS.

A previous issue of e-News for Tax Professionals mentioned the session titled How to Avoid Processing Delays and Streamline Return Filing [ [link removed] ], but did not include the link to the session.

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 [ [link removed] ].

Back to top [ #top ]

________________________________________________________________________

*7.  Reminder: VDP comment period*

________________________________________________________________________

The IRS is seeking input from tax professionals proposed updates to the Voluntary Disclosure Practice (VDP) [ [link removed] ].

The IRS is moving toward a more efficient, streamlined Voluntary Disclosure Practice. The goal is to make the process easier for taxpayers and their representatives to navigate and more efficient for the agency to administer. The redesigned framework focuses on clarity, predictability, and speed.

The public comment period ends March 22, 2026. Tax professionals and others may submit comments by email to [email protected], with the subject line “PROPOSED VDP PUBLIC COMMENT.”

If finalized, the procedures will take effect after the IRS reviews the public comments.

Back to top [ #top ]

________________________________________________________________________

*8.  Did you know? IRS tax tips*

________________________________________________________________________

IRS tax tips [ [link removed] ] are easy-to-read tips about taxes the IRS sends via e-mail. Tax tips are brief, to the point and cover a wide range of topics.

Tax professionals might be particularly interested in three recent tax tips:


*

Reminders for taxpayers about digital assets [ [link removed] ]


*

Tax Pros: Become an authorized e-file provider in three steps [ [link removed] ]


*

Enhanced tax incentives for Qualified Opportunity Zone investments in rural areas [ [link removed] ]

Tax professionals and their clients can subscribe [ [link removed] ] to receive future tax tips from the IRS.

A white electric fan blowing attached green and pink ribbons. Text: 'Becoming an authorized e-file provider is a breeze.' IRS logo also displayed.

Back to top [ #top ]

________________________________________________________________________

*9.  Technical guidance*

________________________________________________________________________

The IRS recently issued guidance on group exemption letter requests and the extension of the SECURE 2.0 Act amendment deadline for IRAs.

*IRS will accept group exemption letter requests*

Revenue Procedure 2026-08 [ [link removed] ] sets forth procedures for group exemption letter requests for organizations described in section 501(c) of the Internal Revenue Code. Group exemption letter requests are for organizations affiliated with and under the general supervision or control of a central organization. The revenue procedure relieves each subordinate organization included in a group exemption letter from filing its own application for recognition of exemption. It also sets forth updated procedures a central organization must follow to maintain a group exemption letter.

Notice 2026-08 [ [link removed] ] discusses the comments received in response to the proposed revenue procedure regarding the group exemption letter program set forth in Notice 2020-36, 2020-21 I.R.B. 840, along with the modifications made in response to those comments and other significant revisions made to the proposed revenue procedure.

Group exemption letter requests may now be submitted using Form 8940, Request for Miscellaneous Determination [ [link removed] ], through Pay.gov [ [link removed] ]. The required user fee for requesting a group exemption letter is currently $3,500.

Revenue Procedure 2026-08 and Notice 2026-08 were in Internal Revenue Bulletin 2026-04 [ [link removed] ], dated Jan. 20, 2026.

*Extension of SECURE 2.0 Act Amendment Deadline for IRAs*

Notice 2026-09 [ [link removed] ] provides guidance relating to amendments under section 501 of the SECURE 2.0 Act of 2022 for an individual retirement arrangements and annuities (IRAs) under section 408(a), (b), or (h), an employer’s SEP arrangement under section 408(k), and an employer’s SIMPLE IRA plan under section 408(p). This notice provides that the Treasury Department and the IRS have extended the deadline to make certain amendments for IRAs, SEP arrangements and SIMPLE IRA plans to December 31, 2027.

Notice 2026-09 will be in Internal Revenue Bulletin 2026-07, dated Feb. 9, 2026.

Back to top [ #top ]

________________________________________________________________________

                              FaceBook Logo [ [link removed] ]  YouTube Logo [ [link removed] ]  Instagram Logo [ [link removed] ]  Twitter Logo [ [link removed] ]  LinkedIn Logo [ [link removed] ]________________________________________________________________________

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 [ [link removed] ] page on the IRS Web site.





Useful Links:

IRS.gov [ [link removed] ]

Tax Professionals Home [ [link removed] ]

All Forms and Instructions [ [link removed] ]

Stakeholders Partners' [ [link removed] ]
Headliners [ [link removed] ]

Training and [ [link removed] ]
Communication Tools [ [link removed] ]

e-Services [ [link removed] ]

Taxpayer Advocate Service [ [link removed] ]

Disaster Relief [ [link removed] ]

Internal Revenue Bulletins [ [link removed] ]

IRS Social Media [ [link removed] ]

________________________________________________________________________

Upcoming Events

Seminars, Workshops, Conferences, and Other Practitioner Activities By State:

Nationwide Webinars [ [link removed] ]

Alabama [ [link removed] ]
Alaska [ [link removed] ]
Arizona [ [link removed] ]
Arkansas [ [link removed] ]
California [ [link removed] ]
Colorado [ [link removed] ]
Connecticut [ [link removed] ]
Delaware [ [link removed] ]
District of Columbia [ [link removed] ]
Florida [ [link removed] ]
Georgia [ [link removed] ]
Hawaii [ [link removed] ]
Idaho [ [link removed] ]
Illinois [ [link removed] ]
Indiana [ [link removed] ]
Iowa [ [link removed] ]
Kansas [ [link removed] ]

________________________________________________________________________

Kentucky [ [link removed] ]
Louisiana [ [link removed] ]
Maine [ [link removed] ]
Maryland [ [link removed] ]
Massachusetts [ [link removed] ]
Michigan [ [link removed] ]
Minnesota [ [link removed] ]
Mississippi [ [link removed] ]
Missouri [ [link removed] ]
Montana [ [link removed] ]
Nebraska [ [link removed] ]
Nevada [ [link removed] ]
New Hampshire [ [link removed] ]
New Jersey [ [link removed] ]
New Mexico [ [link removed] ]
New York [ [link removed] ]
North Carolina [ [link removed] ]

________________________________________________________________________

North Dakota [ [link removed] ]
Ohio [ [link removed] ]
Oklahoma [ [link removed] ]
Oregon [ [link removed] ]
Pennsylvania [ [link removed] ]
Rhode Island [ [link removed] ]
South Carolina [ [link removed] ]
South Dakota [ [link removed] ]
Tennessee [ [link removed] ]
Texas [ [link removed] ]
Utah [ [link removed] ]
Vermont [ [link removed] ]
Virginia [ [link removed] ]
Washington [ [link removed] ]
West Virginia [ [link removed] ]
Wisconsin [ [link removed] ]
Wyoming [ [link removed] ]

________________________________________________________________________

Back to top [ #top ]







/*start reset css*/ div { line-height: 1; } body, table, td, p, a, li, blockquote { -webkit-text-size-adjust: 100%; -ms-text-size-adjust: 100%; } body { -webkit-text-size-adjust: none; -ms-text-size-adjust: none; } table { border-spacing: 0; } table, td { mso-table-lspace: 0pt; mso-table-rspace: 0pt; } img { -ms-interpolation-mode: bicubic; } body { margin: 0; padding: 0; } img { border: none !important; height: auto; line-height: 1; outline: none; text-decoration: none; } table td { border-collapse: collapse !important; } .preheader { display: none !important; visibility: hidden; opacity: 0; color: transparent; height: 0; width: 0; } /*end reset css*/ a[x-apple-data-detectors] { color: inherit !important; text-decoration: none !important; font-size: inherit !important; font-family: inherit !important; font-weight: inherit !important; line-height: inherit !important; } /* Sets the line height in everything but Outlook */ table#yahoo body, table#yahoo p, table#yahoo .gd_p, table#yahoo p span, table#yahoo li, table#yahoo li span { line-height: 1.4; } /* outlook.com line-height control */ .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td {line-height: 100%} table#yahoo .govd_template_image { max-width: 100% !important; max-width:100%; } table#yahoo .govd_template_image, table#yahoo .govd_template_image img { height:auto !important; height:auto; } /* Fixed Outlookdotcom and Outlook360 not supporting Hspace - HT 2-12-2020 */ table#yahoo .gd_combo_table img {margin-left:7px; margin-right:7px;} table#yahoo .gd_combo_table td.gd_combo_image_cell img, table#yahoo .gd_combo_table div.govd_image_display img {margin-left:0px; margin-right:0px;} body { font-family: arial; } p { font-size: 12px; } li { font-size: 12px; } h2 { font-size: 24px; font-style: italic;} html body#shared_bulletin #page .account_banner { display: none !important; } @media only screen and (max-device-width: 480px) { table#yahoo, table#yahoo table { position: relative; } table#yahoo .govd_header { max-width: 480px !important; } table#yahoo .govd_hr img, table#yahoo .govd_hr_inner img { display:none !important; } table#yahoo .govd_content_container .govd_image_display { margin-left:0 !important; } table#yahoo .container-fill, table.gd_tbl_wrap, table.gd_tbl_wrap table { max-width: 480px !important; } .main-table, .mobile-footer, .mobile-tagline, table.gd_tbl_wrap, table.gd_tbl_wrap table { width:100% !important; min-width:100% !important; max-width:480px !important; } table#yahoo .tablecell, .tablecell { width:100% !important; display: block !important; max-width:100% !important; min-width: 100% !important; } table#yahoo #main-body .govd_hr {background:transparent none !important;} .mobile-hide {display:none !important;} .mobile-padding {padding:0 !important;} .mobile-columns {padding:10px 20px !important;} }

________________________________________________________________________

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

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


body .abe-column-block {min-height: 5px;} ________________________________________________________________________

This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}