Issue Number:  2026-05

Inside This Issue

1. IRS requests applications for 2026 ETAAC membership

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

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

4. Simple Payment Plans have expanded to businesses

5. National Taxpayer Advocate delivers Annual Report to Congress

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

7. Reminder: VDP comment period

8. Did you know? IRS tax tips

9. Technical guidance

1.  IRS requests applications for 2026 ETAAC membership

The IRS is accepting applications for the Electronic Tax Administration Advisory Committee 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, 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 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].

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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 to help taxpayers, businesses, and other stakeholders understand the changes under Executive Order 14247: Modernizing Payment To and From America’s Bank Account.

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 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, Electronic Federal Tax Payment System, or other approved methods.

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

• Visit IRS.gov to learn about electronic payment 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 on IRS.gov.

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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 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.

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4.  Simple Payment Plans have expanded to businesses

The IRS recently updated qualifications for Simple Payment Plans, 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:

• $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:

• $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.

How to Apply

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

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5.  National Taxpayer Advocate delivers Annual Report to Congress

National Taxpayer Advocate’s 2025 Annual Report to Congress is now available.

National Taxpayer Advocate Erin M. Collins released her 2025 Annual Report to Congress 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 for more information.

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

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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) is How to Help Taxpayers Avoid Abusive Tax Promotions and Abusive Return Preparers. 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, 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.

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7.  Reminder: VDP comment period

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

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.

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8.  Did you know? IRS tax tips

IRS tax tips 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

• Tax Pros: Become an authorized e-file provider in three steps

• Enhanced tax incentives for Qualified Opportunity Zone investments in rural areas

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

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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 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 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, through Pay.gov. 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, dated Jan. 20, 2026.

Extension of SECURE 2.0 Act Amendment Deadline for IRAs

Notice 2026-09 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.

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