TAX CONTROVERSY 360

IRS roundup: January 21 – February 9, 2026

by Suzanne Golshanara, Edward L. Froelich and Matthew J. Blaney | Feb 11, 2026 | Court Procedure Matters, IRS Guidance, Significant Court Decision, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for January 21, 2026 – February 9, 2026.

January 26, 2026: The IRS released Notice 2026-9, which provides a one-year extension to make certain amendments to individual retirement arrangements (IRAs), simplified employee pension arrangements, and savings incentive match plan for employees IRA plans. The new deadline is December 31, 2027. The extension gives the IRS additional time to issue model language for the various changes resulting from compliance with the SECURE 2.0 Act of 2022 and related legislation.

January 27, 2026: The IRS released Fact Sheet 2026-2, which provides updated questions and answers regarding the implementation of Executive Order 14247, Modernizing Payments To and From America’s Bank Account. The executive order advances the transition to fully electronic federal payments both to and from IRS.

January 29, 2026: The IRS announced that it is accepting applications for the Electronic Tax Administration Advisory Committee (ETAAC) through February 28, 2026. The ETAAC provides an organized public forum for discussing electronic tax administration issues, such as prevention of identity theft and refund fraud.

February 2, 2026: The IRS released Internal Revenue Bulletin No. 2026-6, which includes Announcement 2026-3. The announcement provides a copy of the arrangement entered into by the competent authorities of the United States and Spain regarding the implementation of the arbitration process provided for in paragraphs 5 and 6 of Article 26 of the US-Spain income tax treaty and its protocol.

February 2, 2026: The IRS announced that it would continue operations under the current lapse in appropriations until further notice, using funding from the Inflation Reduction Act of 2022 (IRA).

February 3, 2026: The US Department of the Treasury and the IRS issued proposed regulations regarding the clean fuel production credit enacted by the IRA and amended by the One Big Beautiful Bill Act. The new law made important changes to what is often referred to as the 45Z credit. The proposed regulations would provide rules for determining clean fuel production credits. They also would amend three sets of final regulations: the elective payment election regulations and the credit transfer election regulations (to clarify language relating to ownership of clean fuel production facilities) and the federal excise tax registration regulations (to make them clearer and more consistent with the clean fuel production credit registration requirements in these proposed regulations). The proposed regulations would affect domestic producers of clean transportation fuel, taxpayers that may claim a credit for a related producer’s fuel, and excise tax registrants. Comments must be received by April 6, 2026. There is a public hearing that will be held on May 28, 2026, and requests to speak at the public hearing will be accepted until May 26, 2026.

Recent court decisions

January 28, 2026: The US Tax Court issued its opinion in Aventis Inc. v. Commissioner, rejecting Aventis’s attempt to treat [...]

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IRS roundup: January 13 – January 20, 2026

by Matthew J. Blaney and Suzanne Golshanara | Feb 3, 2026 | IRS Guidance, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for January 13, 2026 – January 20, 2026.

January 13, 2026: The IRS released Notice 2026-12, which provides the 24-month average corporate bond segment rates for January 2026, the yield curve and segment rates for single-employer plans, and the 30-year Treasury securities interest rates.

January 14, 2026: The IRS released Notice 2026-11, which provided interim guidance on the additional first-year depreciation deduction under Section 168(k) and announced the IRS’s intent to issue proposed regulations that would implement it. The One Big Beautiful Bill Act (OBBBA) created the permanent 100% additional first-year depreciation deduction for eligible depreciable property acquired after January 19, 2025. The notice advises taxpayers that they may generally continue to rely on the existing regulations governing the additional first-year depreciation deduction. The notice also outlines the criteria for determining whether depreciable property qualifies for the deduction and provides rules for calculating the allowable amount of the deduction under the OBBBA. The notice provides guidance on the addition of certain qualified sound recording productions that the OBBBA added as property that may qualify for the additional first-year depreciation deduction under Section 168(k)(2).

January 15, 2026: The IRS released Revenue Ruling 2026-3, which provides the February 2026 applicable federal rates.

January 15, 2026: The IRS released Notice 2026-13, which issued guidance updating the safe harbor explanations for retirement plans to reflect tax law changes implemented after Notice 2020-62 was issued on August 6, 2020. Notice 2026-13 modifies two safe harbor explanations that retirement plan administrators may use to satisfy the requirement under Section 402(f) to provide certain information to recipients of eligible rollover distributions. One safe harbor explanation applies to distributions that are not from a designated Roth account, and the other applies to distributions from a designated Roth account. The notice also clarifies changes to the 10% additional tax on early withdrawals from retirement plans, updates to the required minimum distribution rules for surviving spouses, and the increased age used to determine the required beginning date for required minimum distributions.

January 15, 2026: The IRS released Revenue Procedure 2026-8, which provided updated procedures for obtaining recognition of exemption from federal income tax on a group basis for organizations described in Section 501(c) that are affiliated with and under the general supervision or control of a central organization. The revenue procedure relieves subordinate organizations included in a group exemption letter from filing their own exemption applications. It also sets forth updated procedures a central organization must follow to maintain a group exemption letter.

Notice 2020-36 previously suspended the IRS’s acceptance of group exemption letter applications as of June 17, 2020, pending issuance of a final revenue procedure. This final revenue procedure has now been issued in the form of Revenue Procedure 2026-8, which states that the IRS will resume accepting applications for group exemption [...]

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IRS roundup: December 12, 2025 – January 12, 2026

by Matthew J. Blaney and Suzanne Golshanara | Jan 13, 2026 | IRS Guidance, Penalties, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for December 12, 2025 – January 12, 2026.

December 12, 2025: The IRS issued Treasury Decision 10042, which modified and clarified the Internal Revenue Code (Code) Section 892 rules. The Treasury Decision contains final regulations regarding the taxation of income earned by foreign governments from investments in the United States. The regulations clarify how to determine when a foreign government is engaged in commercial activity and when an entity qualifies as a controlled commercial entity. These rules apply to foreign governments that earn income from US sources.

December 12, 2025: The IRS issued proposed regulations, which provided additional guidance under Section 892 and focus on:

Determining when an acquisition of debt by a foreign government is treated as a commercial activity
Determining when a foreign government has effective control of an entity engaged in a commercial activity
Clarifying that partnerships, including partnerships wholly owned by a single foreign sovereign, are not controlled entities under Section 892 for US tax purposes.

December 15, 2025: The IRS issued proposed regulations, updating points of contact within the US Department of Justice (DOJ) and the IRS to identify points of contact for matters involving internal revenue laws following a reorganization within the DOJ. The regulations would also update points of contact at the IRS for taxpayers submitting administrative claims for civil damages related to certain unauthorized collection actions or awards of administrative costs in specified administrative proceedings.

December 15, 2025: The IRS withdrew two notices of proposed rulemaking regarding innocent spouse relief.

December 22, 2025: The IRS issued proposed updates, which set forth a clearer, more predictable system for its Voluntary Disclosure Practice and a more streamlined penalty framework. The IRS seeks public comment on the proposed updates by March 22, 2026.

December 29, 2025: The IRS released Internal Revenue Bulletin 2026-1, which includes the following:

Revenue Procedure 2026-1, which contains the revised procedures for letter rulings and information letters issued by the different associate chief counsel offices. This revenue procedure also contains the revised procedures for determination letters issued by the Large Business and International Division, the Small Business/Self-Employed Division, the Wage and Investment Division, and the Tax Exempt & Government Entities (TE/GE) Division.
Revenue Procedure 2026-2, which explains when and how associate chief counsel offices should provide advice in technical advice memoranda (TAM) as well as taxpayers’ rights when a field office requests a TAM.
Revenue Procedure 2026-3, which provides a revised list of Code areas under the jurisdiction of the following associate chief counsel offices:
- Corporate
- Financial Institutions and Products
- Income Tax and Accounting
- Passthroughs and Special Industries
- Procedure and Administration
- Energy, Credits, and Excise Tax
- Employee Benefits, Exempt Organizations, and Employment Taxes.

These relate to matters in which the IRS will not issue letter rulings [...]

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IRS roundup: December 15 – December 22, 2025

by Matthew J. Blaney and Suzanne Golshanara | Jan 6, 2026 | IRS Guidance, Tax Reform, Tax Refunds

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for December 15, 2025 – December 22, 2025.

December 15, 2025: The IRS issued Notice 2026-2, providing an update on weighted average interest rates, yield curves, and segment rates. The notice specifically focused on the corporate bond monthly yield curve, corresponding spot segment rates used for purposes of Internal Revenue Code (Code) Section 417(e)(3), and 24-month average segment rates for purposes of Code Section 430(h)(2). Notice 2026-2 also provides the interest rate for 30-year Treasury securities for purposes of Code Section 417(e)(3)(A)(ii)(II), as in effect for plan years beginning before 2008, as well as the 30-year Treasury weighted average rate for purposes of Code Section 431(c)(6)(E)(ii)(I).

December 15, 2025: The IRS issued Revenue Ruling 2026-2, providing various prescribed rates for federal income tax purposes for January 2026. The prescribed rates include:

Short-, mid-, and long-term applicable federal rates for certain debt instruments in the Code.
Section 42(b)(1) housing credit appropriate percentages.
The deemed rate of return for calendar year 2026 transfers made to pooled income funds, as described in Section 642(c)(5).
The average of the applicable federal mid-term rates for the 60-month period ending December 31, 2025.

December 19, 2025: The IRS issued Notice 2026-1, providing interim guidance related to the credit for carbon oxide sequestration under Code Section 45Q pending the forthcoming proposed regulations removing reporting obligations related to the geological sequestration of carbon dioxide imposed under subpart RR of 40 CFR part 98. The notice specifically provides a safe harbor for determining eligibility for qualified carbon oxide, captured and disposed of in secure geological storage and not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, during calendar year 2025. Notice 2026-1’s safe harbor applies if the US Environmental Protection Agency does not launch the electronic Greenhouse Gas Reporting Tool for filers to prepare and submit information required under subpart RR by June 10, 2026. Taxpayers can rely on the safe harbor to demonstrate compliance with subpart RR requirements when determining the Code Section 45Q credit related to the 2025 Calendar Year Secure Geological Storage.

December 19, 2025: The IRS issued Notice 2026-6, extending the transition period in Revenue Ruling 2025-4 for states administering paid family and medical leave (PFML) programs and employers participating in PFML programs. The extension is for an additional year and only as it relates to the medical leave benefits a state pays to an individual that can be attributed to employer contributions.

December 22, 2025: The IRS issued Notice 2026-3, providing relief from Code Section 6654 and 6655 additions of tax for underpayments of estimated income tax by taxpayers making valid Code Section 1062(a) elections.

December 22, 2025: In Announcement 2026-1, the IRS declared its intent to issue guidance related to Code Section 6435. That guidance, intended for taxpayers that paid Code [...]

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IRS roundup: November 25 – December 10, 2025

by Evan Walters, Samuel F. Hamer, Edward L. Froelich, Michael J. Scarduzio, Matthew J. Blaney and Suzanne Golshanara | Dec 16, 2025 | Court Procedure Matters, IRS Guidance, Significant Court Decision, Tax Reform

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for November 25, 2025 – December 10, 2025.

November 25, 2025: The IRS released Notice 2025-70, requesting comments on the implementation of a new individual tax credit under the newly enacted Section 25F under the One Big Beautiful Bill Act (OBBBA). Beginning in 2027, taxpayers may claim up to $1,700 under Section 25F for contributions to Scholarship Granting Organizations that provide scholarships for elementary and secondary school students from low- and middle-income families. Comments are due by December 26, 2025.

November 25, 2025: The IRS released Notice 2025-72, providing guidance on the OBBBA’s repeal of the one-month deferral election under Section 898(c)(2) for specified foreign corporations (SFCs), effective for taxable years beginning after November 30, 2025. For SFCs that previously elected a one-month deferral, the first required tax year will be a short period ending on the same date as their majority US shareholder’s tax year. The notice addresses administrability concerns and provides a method for allocating foreign income taxes between this short year and the next year for subpart F, global intangible low-taxed income (GILTI), and foreign tax credit purposes. The notice also previews proposed Section 987 regulations that would modify the 10-year transition election for recognizing pre-transition gain or loss, allowing ratable recognition over 120 months. Comments are requested by January 24, 2026, particularly on the allocation rule and other multiyear provisions affected by short tax years.

December 2, 2025: The IRS released Notice 2025-68, which addresses the new Trump Accounts. Created by the OBBBA, Trump Accounts are a type of traditional individual retirement account for individuals under 18 years of age who have a social security number issued before the date of the election. The notice provides initial guidance on the potential benefits of these accounts and outlines details of the pilot program under Section 6364. Comments on the guidance are due by February 20, 2026, though the IRS notes that proposed regulations governing the election to open a Trump Account and the pilot program contribution election under Section 6434 may be issued before the comment period closes.

December 3, 2025: The IRS released Announcement 2025-22 and Announcement 2025-23, identifying taxpayers and the amounts of Section 48C credits allocated for projects that received certifications under the Section 48C(e) advanced energy project program. Section 48C(e)(1) directs the secretary of the treasury to establish a program to award certifications for qualified investments eligible for Section 48C credits. The US Department of the Treasury and the IRS provided two allocation rounds. Announcement 2025-22 lists Round One taxpayers and allocations, and Announcement 2025-23 lists Round Two taxpayers and allocations.

December 4, 2025: The IRS released Notice 2025-75, which provided a transition rule and proposed regulations that modify the application of Section 951(a)(2)(B) following the OBBBA changes for certain controlled foreign corporation (CFC) taxable years beginning [...]

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IRS roundup: January 21 – February 9, 2026

IRS roundup: January 13 – January 20, 2026

IRS roundup: December 12, 2025 – January 12, 2026

IRS roundup: December 15 – December 22, 2025

IRS roundup: November 25 – December 10, 2025

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