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The Employee Retention Credit: Ninth Circuit affirms denial of injunction, but leaves door open on merits

by Akiva B. Ungar and Edward L. Froelich | Mar 27, 2026 | Appellate Courts, Court Procedure Matters, IRS Appeals, Significant Court Decision, Trial Courts

Case: ERC Today, LLC v. McInelly, Case No. 25-2642 (9th Cir. Mar. 17, 2026)

We previously discussed the US District Court for the District of Arizona’s April 2025 order denying a motion for a preliminary injunction filed by two tax preparation firms challenging the Internal Revenue Services’ (IRS) automated “risking” model for processing Employee Retention Credit (ERC) claims. The firms appealed, and on March 17, 2026, the US Court of Appeals for the Ninth Circuit affirmed the district court’s denial – but the way in which it did so warrants attention.

Standing, but not substance

The Ninth Circuit affirmed on the narrow ground that the tax preparation firms failed to demonstrate Article III standing. The Court found that the firms offered no evidence that they were making less money or spending more on representations because of the IRS’s processing approach. The Court also rejected claims of procedural and reputational injury, holding that IRS administrative procedures are designed to protect taxpayers, not the economic interests of third-party contingency fee firms.

Given the standing ruling, the Court did not address whether the IRS’s Disallowance During Processing program, which uses automated risk models to categorically disallow thousands of claims without individualized review, violates the Administrative Procedure Act or is otherwise unlawful. Those questions remain open. A challenge brought by a party with proper standing could reach those merits and might reveal the program to be infirm.

The future of taxpayer challenges

This decision comes as the IRS closes the book on ERC processing. In February 2026, the IRS announced it had closed all non-examined ERC claims as of December 31, 2025, meaning businesses whose claims were closed without payment must now pursue litigation to secure their refunds.

Unlike the tax preparation firms in ERC Today, taxpayers whose claims have been disallowed can engage the jurisdiction of a refund court under Internal Revenue Code Sections 6532 and 7422 and would have no standing issues. They would be better positioned to test the legality of the IRS’s automated processing procedures on the merits and should consider raising the argument in their complaint. As we have previously cautioned, however, taxpayers must remain vigilant about statutes of limitations: Administrative delay does not eliminate judicial deadlines, and a protest to the IRS Independent Office of Appeals does not suspend the two-year period under Section 6532(a) to file a refund suit.

IRS roundup: March 9 – March 25, 2026

by Kai M. Fenty, Matthew J. Blaney and Edward L. Froelich | Mar 26, 2026 | Court Procedure Matters, IRS Guidance, Significant Court Decision, Tax Reform, Trial Courts

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for March 9, 2026 – March 25, 2026.

AI controversy developments

March 20, 2026: The US Tax Court is considering developing a disciplinary framework for the misuse of artificial intelligence (AI) in litigation following concerns raised by Judge Mark V. Holmes regarding lawyers citing AI-generated, nonexistent cases. Judge Holmes indicated that the Court is proceeding cautiously given that a large share of its docket involves pro se taxpayers and emphasized the difficulty of crafting appropriate sanctions in that context. The discussion highlights broader concerns about hallucinated authorities, potential IRS misuse of AI, and the need to protect sensitive taxpayer information as the Court balances enforcement with legitimate AI uses.

IRS guidance

March 13, 2026: The IRS announced that the secretary of the US Department of the Treasury is no longer serving as acting IRS commissioner following the expiration of authority under the Federal Vacancies Reform Act of 1998. Chief Executive Officer Frank J. Bisignano is currently leading the IRS’s day-to-day operations.

March 16, 2026: The IRS issued Revenue Ruling 2026-11, updating the rules and technical specifications for substitute versions of Form 941, Form 8974, and related schedules, including Schedules B, D, and R. The guidance provides standards for paper and computer-generated substitutes used by software developers and payroll providers and supersedes prior guidance.

March 17, 2026: The IRS issued Notice 2026-19, providing updated interest rates for pension the corporate bond monthly yield curve, spot segment rates under Internal Revenue Code (Code) § 417(e)(3), and 24-month average segment rates under Code § 430(h)(2). The notice also includes the applicable 30-year Treasury rate for February 2026 (4.76%) and related weighted average rates.

March 18, 2026: The IRS issued Notice 2026-20, extending for one additional year the temporary relief provided by Notice 2025-7, which allows taxpayers to use alternative methods to identify which units of digital assets are sold, disposed of, or transferred when held with a broker. Under this relief, taxpayers may identify units on their own books and records, including through standing orders, rather than communicating with brokers. The notice clarifies that this does not prevent taxpayers from complying with § 1.1012-1(j)(3)(ii).

March 20, 2026: The IRS issued Revenue Procedure 2026-17, providing transition relief under Code § 163(j) that allows certain taxpayers to withdraw previously irrevocable elections to be treated as electing real property trades or businesses, electing farming businesses, or excepted regulated utility trades or businesses. The guidance also permits taxpayers withdrawing those elections to make a late election out of bonus depreciation, allows taxpayers to revoke or make controlled foreign corporation group elections without regard to the 60-month limitation, and permits eligible Bipartisan Budget Act of 2015 (BBA) partnerships to file amended Forms 1065 and issue amended Schedules K-1.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Recent court decisions

March 9, 2026: [...]

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Is your ERC claim protected? Keep an eye on litigation deadlines

by Akiva B. Ungar, Samuel F. Hamer and Edward L. Froelich | Mar 13, 2026 | Court Procedure Matters, IRS Appeals, IRS Guidance, Tax Refunds, Trial Courts
In February 2026, the Internal Revenue Service (IRS) announced that, as of December 31, 2025, it had closed all non-examined Employee Retention Credit (ERC) claims. This development could compel businesses to pursue litigation to secure their ERC refunds. In its announcement, the IRS also noted that approximately 41,000 claims remain under IRS examination or appeal.

The IRS’s announcement brings renewed focus to a risk we have been highlighting for some time: Statutes of limitation can quietly extinguish otherwise valid refund claims. As discussed in our article in Bloomberg on how to litigate and resolve ERC claims, administrative delay does not eliminate judicial deadlines. For taxpayers whose claims have been formally disallowed, Internal Revenue Code Section 6532(a) provides only two years to file a refund suit. A protest to the IRS Independent Office of Appeals (IRS Appeals) does not suspend that deadline. Without filing suit or obtaining a written extension (Form 907), the right to a refund can be permanently lost.

For taxpayers with ERC claims that are pending without action (i.e., those described in the IRS’s announcement), the statute of limitations analysis is more complex. Some courts have dismissed taxpayer suits that were filed more than six and a half years from the time the claim arose.[1] Under the logic of these cases, there may be a six-and-a-half-year limit in effect from the date a refund claim is filed – the six months a taxpayer must wait before filing a refund suit plus six years during which the government is susceptible to suit under a general statute of limitations on civil claims against the government (31 U.S.C. § 3702(b)). For ERC claims submitted in 2020, the end of this possibly applicable six-and-a-half-year period is quickly approaching. To the extent a court will apply this limitation, a taxpayer with an ERC refund claim may be barred from suit even without a formal disallowance by the IRS.

The message for businesses is consistent with our earlier guidance: Protecting the right to an ERC refund requires a proactive strategy. Taxpayers must identify which limitations periods apply to their claims, manage calendar critical deadlines, and evaluate whether protective litigation is necessary to preserve their potential refunds. Businesses facing challenged, delayed, or disallowed ERC claims should evaluate their statute posture urgently. Our tax controversy & litigation team continues to advise clients on navigating ERC audits, IRS Appeals proceedings, and refund litigation to ensure procedural missteps do not foreclose recovery.

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[1] See Wagenet v. United States, No. CV 08-01234, 2009 WL 4895363, at *5 (C.D. Cal. Sept. 14, 2009) (dismissing tax refund action as filed outside the six-year statute). See also Bowman Transp., Inc. v. United States, 220 Ct. Cl. 36, 40–41 (1979) (interpreting 28 U.S.C. § 2501 and explaining that “[d]espite the fact that the carrier has only two years from the date on which the refund claim is expressly disallowed or apparently the regular six-year period of limitations contained in 28 U.S.C. § [...]

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IRS roundup: March 3 – March 10, 2026

by Kai M. Fenty, Matthew J. Blaney and Edward L. Froelich | Mar 10, 2026 | Court Procedure Matters, IRS Guidance, Significant Court Decision, Tax Reform, Trial Courts
Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for March 3, 2026 – March 10, 2026.

IRS guidance

March 3, 2026: The IRS released Revenue Procedure 2026-15, which provides the inflation-adjusted luxury automobile depreciation limits under Internal Revenue Code (Code) Section 280F for passenger vehicles, including trucks and vans, placed in service in 2026 and the lease inclusion amounts for vehicles first leased in 2026. The guidance includes separate first-year depreciation caps depending on whether bonus depreciation under Section 168(k) applies.

March 4, 2026: The IRS released Revenue Procedure 2026-16, which provides information for individuals who failed to meet Code Section 911(d)(1) requirements for 2025 due to adverse conditions, listing countries and “date of departure on or after” thresholds (e.g., Haiti, Ukraine, and the Democratic Republic of the Congo, among others).

March 5, 2026: The IRS released Notice 2026-4, which requests comments on whether to modify requirements for electronic furnishing of certain payee statements, including for brokers and potentially other furnishers.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Recent court decisions

March 2, 2026: The US Tax Court held that a German parent company had zero basis in a $610 million promissory note that was contributed to a partnership after its wholly owned subsidiary elected to be disregarded for US tax purposes. Because the subsidiary’s retroactive “check-the-box” election caused the transaction to be treated as the parent’s contribution of its own note, the Tax Court concluded that the note had no tax basis since a taxpayer incurs no “cost” in issuing its own obligation, resulting in zero basis both in the partnership interest and in the partnership’s basis in the note.

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IRS roundup: February 17 – February 27, 2026

by Suzanne Golshanara and Matthew J. Blaney | Mar 4, 2026 | IRS Guidance, Tax Reform
Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for February 17, 2026 – February 27, 2026.

February 17, 2026: The IRS released Revenue Ruling 2026-6, which provides the March 2026 applicable federal rates.

February 18, 2026: The IRS released Notice 2026-7, which provides additional interim guidance and updates existing guidance on the application of the corporate alternative minimum tax (CAMT) under Internal Revenue Code (Code) Sections 55, 56A, and 59. The notice modifies previously issued CAMT guidance, particularly Notices 2025‑49 and 2025‑46. It also introduces several new updates to adjusted financial statement income regarding intangibles and repairs under Code Section 197 and changes to domestic research amortization expenses based on changes brought by the One Big Beautiful Bill Act (OBBBA).

February 19, 2026: The IRS released Notice 2026-14, which provides the 24-month average corporate bond segment rates for February 2026, the yield curve and segment rates for single-employer plans, and the 30-year Treasury securities interest rates.

February 20, 2026: The IRS released Notice 2026-16, which provides interim guidance and announces forthcoming proposed regulations addressing the special depreciation allowance for qualified production property under Code Section 168(n), as created by the OBBBA.

The notice provides interim guidance regarding the definitions of “qualified production property” and “qualified production activity,” how to determine the special depreciation allowance for qualified production property, and how and when an election to treat property as qualified production property is made. Qualified production property generally includes nonresidential real property used as an integral part of a qualified production activity, such as manufacturing, chemical production, agricultural production, or refining, that results in the substantial transformation of a qualified product. The notice also explains how the depreciation recapture rules apply to property that ceases to meet the requirements to be qualified production property. Taxpayers may rely on Notice 2026-16 until proposed regulations are issued. Comments on the interim guidance are requested within 60 days.

February 23, 2026: The IRS released Announcement 2026-7, which states that certain portions of final regulations relating to required minimum distributions under Code Section 401(a)(9) will apply for the distribution calendar year that begins no earlier than six months after the date the final regulations are issued in the Federal Register.

February 25, 2026: The IRS released Notice 2026-17, which announces forthcoming proposed regulations under Code Section 987. The notice allows taxpayers to elect the equity and basis pool method for determining taxable income or loss and foreign currency gain or loss with respect to a qualified business unit.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

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IRS roundup: February 9 – February 17, 2026

by Matthew J. Blaney, Suzanne Golshanara and Edward L. Froelich | Feb 24, 2026 | IRS Guidance, Penalties, Tax Reform, Tax Refunds
Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for February 9, 2026 – February 17, 2026.

IRS guidance

February 9, 2026: The IRS issued Revenue Procedure 2026-13, providing discount factors for insurance companies to compute Section 846 discounted unpaid losses and recoverable Section 832 discounted estimated salvage for the 2025 accident year. This revenue procedure also provides discount factors to be used in tax years beginning in 2025 for losses incurred in the 2024 accident year and earlier accident years. Discount factors for tax years prior to 2025 were previously provided in Revenue Procedure 2025-15 and Revenue Procedure 2023-10.

February 12, 2026: The IRS issued Notice 2026-15, describing interim guidance on restrictions for certain energy credits related to the status of, and sourcing from, a prohibited foreign entity (PFE). These restrictions were enacted by Public Law 119- 21, 139 Stat. 72 (July 4, 2025) and provide:

Descriptions of rules the US Department of the Treasury (Treasury) and the IRS intend to provide in proposed regulations regarding material assistance from a PFE.

Descriptions of the Sections 45X, 45Y, and 48E interim safe harbor guidance for determining a qualified facility’s, energy storage technology’s, or eligible component’s material assistance cost ratio related to determining whether there was material assistance from a PFE.

PFE restrictions that the Treasury and the IRS will include in forthcoming proposed regulations.

A glossary of defined terms, a request for comments, and guidance on substantiation and taxpayer ability to rely on guidance provided in Sections 3 – 5 of the notice.

February 17, 2026: The IRS released Internal Revenue Bulletin No. 2026-8, which includes Revenue Ruling 2026-5. This revenue ruling provides Section 6621 interest rates for underpayments and overpayments for Q2 2026, as described below:

6% for overpayments generally

5% for overpayments in the case of a corporation, which drops to 3.5% for the portion of a corporate overpayment exceeding $10,000

6% for underpayments generally

8% for large corporate underpayments

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

Penalty disclosure guidance

February 9, 2026: The IRS released Internal Revenue Bulletin No. 2026-7, which includes Revenue Procedure 2026-12. This revenue procedure specifies when information shown on a return is considered an adequate disclosure for purposes of reducing an understatement of income tax under Section 6662(d) and avoiding a Section 6694(a)’s preparer penalty.

Under Revenue Procedure 2026-12, taxpayers generally “must furnish all required information in accordance with the applicable forms and instructions, and the money amounts entered on these forms must be verifiable.” An amount is verifiable where, “on audit, the taxpayer can prove the origin of the amount (even if that number is not ultimately accepted by the Service) and the taxpayer can show good faith in entering that number on the applicable form.” And where an item is being reported does not [...]

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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: 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: November 7 – November 24, 2025

by Evan Walters, Samuel F. Hamer, Edward L. Froelich, Michael J. Scarduzio, Matthew J. Blaney and Suzanne Golshanara | Dec 2, 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 7, 2025 – November 24, 2025.

November 10, 2025: The IRS released Internal Revenue Bulletin No. 2025-46, which includes proposed regulations 109742-25. The proposed regulations would remove a rule in previous final regulations that uses the shareholders of certain domestic corporations to determine whether foreign persons hold – directly or indirectly – stock in a domestically controlled qualified investment entity (QIE). If a QIE was not domestically controlled following the changes from the proposed regulations, stock owned by foreign persons in a QIE would qualify as a US real property interest.

November 10, 2025: The IRS released Revenue Procedure 2025-31, providing guidance on a safe harbor that allows trusts qualifying as investment trusts under Section 301.7701-4(c) and as grantor trusts to stake digital assets without losing their tax status and offering a limited period for existing trusts to amend their governing instruments to meet the safe harbor requirements.

November 13, 2025: The IRS released Notice 2025-67, which announces the annual cost-of-living adjustments to the limits on benefits and contributions for qualified retirement plans under Section 415 of the Internal Revenue Code (Code). These adjustments, required by Section 415(d), follow procedures similar to those used for Social Security benefit updates and apply to certain amounts under deferred compensation plans.

November 13, 2025: The IRS released Revenue Ruling 2025-22, announcing that interest rates will remain unchanged for the calendar quarter beginning January 1, 2026. The rates are as follows:

7% for individual overpayments and 6% for corporate overpayments

5% on the portion of a corporate overpayment exceeding $10,000

7% for underpayments and 9% for large corporate underpayments

Under the Code, these rates are recalculated quarterly based on the federal short-term rate. For noncorporate taxpayers, both overpayment and underpayment rates equal the federal short-term rate plus three percentage points. For corporations, the underpayment rate is also the short-term rate plus three points while the overpayment rate is the short-term rate plus two points. Large corporate underpayments add five points, and corporate overpayments exceeding $10,000 add 0.5 points. The current rates are based on the federal short-term rate determined in October 2025.

November 19, 2025: The IRS announced that it would resume its regular activities following the 2025 lapse in appropriations during the government shutdown. In its announcement, the IRS included specific frequently asked questions regarding the resumption of regular activities for audits, collections, and appeals and stated that determination letter applications for tax exempt and government entities would resume.

Recent court decisions

November 5, 2025: The US District Court for the Northern District of Texas issued an opinion in Ryan, LLC v. IRS. Check out our recent insight on the case, including an analysis of the district court’s holdings and practice points for taxpayers.

November 12, 2025: The US [...]

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IRS roundup: October 23 – November 6, 2025

by Evan Walters, Samuel F. Hamer, Edward L. Froelich, Michael J. Scarduzio, Matthew J. Blaney and Suzanne Golshanara | Nov 7, 2025 | IRS Guidance, Penalties, Tax Reform
Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for October 23, 2025 – November 6, 2025.

October 23, 2025: The IRS issued frequently asked questions, addressing its revisions and updates to Form 1099-K following changes resulting from the One Big Beautiful Bill Act (OBBBA). The OBBBA retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA). This means that a third-party settlement organization (TPSO), which is a type of payment settlement entity, is generally not required to file a Form 1099-K. However, TPSOs will be required to file a Form 1099-K if the gross amount of reportable payment transactions to a payee exceeds $20,000 and if the number of reportable payment transactions exceeds 200. Previously, under the ARPA reporting threshold, TPSOs had to file a Form 1099-K for any payee that received more than $600 in total payments for the sales of goods or services, regardless of the number of reportable payment transactions.

October 27, 2025: The IRS reminded tax preparers that preparer tax identification numbers (PTINs) must be renewed annually and that the 2026 renewal period is now open. All 2025 PTINs will expire on December 31, 2025.

November 3, 2025: The IRS released Internal Revenue Bulletin No. 2025-45, which includes Notice 2025-61. Notice 2025-61 provides guidance on the adjusted applicable dollar amount for the Patient-Centered Outcomes Research Trust Fund (PCORTF) fee, which is imposed on issuers of specified health plans and plan sponsors of applicable self-insured health plans to fund PCORTF. Notice 2025-61 specifically provides the increased adjusted applicable dollar amount for determining the PCORTF fee as $3.84 (from the previous set amount of $3.47) for all policies and plans ending on or after October 1, 2025, and before October 1, 2026. The IRS explained that the amount was calculated by US Department of the Treasury economists based on the percentage increase in the projected per capita amount of National Health Expenditures, which was published by the US Department of Health and Human Services in June 2025.

November 5, 2025: The IRS issued Notice 2025-62, providing guidance on penalty relief for taxable year 2025 in connection with the implementation of new information reporting requirements related to the deductions for qualified tips and qualified overtime compensation to reflect amendments resulting from the OBBBA. Notice 2025-62 specifically provides relief for taxable year 2025 from the penalty under Section 6721 for failure to file correct information returns and the penalty under Section 6722 for failure to furnish correct payee statements. The IRS also announced that guidance on how taxpayers can claim these deductions on their tax return for the 2025 tax year is forthcoming.

The IRS also released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums, and Chief Counsel Advice).

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The Employee Retention Credit: Ninth Circuit affirms denial of injunction, but leaves door open on merits

IRS roundup: March 9 – March 25, 2026

AI platforms and privilege: Tax departments should be wary about what they share

Is your ERC claim protected? Keep an eye on litigation deadlines

IRS roundup: March 3 – March 10, 2026