IRS Reminder for Oct. 15 Filing Deadline (IR-2025-104)

• Date: Oct 14, 2025. Applies to tax year 2024 returns for those who filed extensions.
• Deadline: Oct 15 (midnight). IRS urges e-filing and electronic payments; paper filers can use Form 1040 and instructions for mailing addresses.
• Government shutdown note: Filing and payment obligations remain in effect; IRS will accept/process payments by mail or electronically.
• Possible extensions:

IRS Inflation Adjustments for Tax Year 2026 (IR-2025-103)

• Applies to 2026 returns filed in 2027; detailed in Revenue Procedure 2025-32.
• Standard deduction (2026): $32,200 MFJ; $16,100 Single/MFS; $24,150 HOH. Note: OBBB set 2025 SD at $31,500 MFJ; $15,750 Single/MFS; $23,625 HOH.
• Marginal brackets (Single; MFJ): 37% over $640,600; $768,700. 35% over $256,225; $512,450. 32% over $201,775; $403,550. 24% over $105,700; $211,400. 22% over $50,400; $100,800. 12% over $12,400; $24,800. 10% up to $12,400; $24,800.
• AMT exemption (2026): $90,100 Single (phaseout starts $500,000); $140,200 MFJ (phaseout starts $1,000,000).
• Estate tax exclusion: $15,000,000 (up from $13,990,000 in 2025).
• Adoption credit: Up to $17,670; up to $5,120 refundable.
• Employer-provided childcare credit (for employers): Max increased to $500,000 ($600,000 for eligible small businesses) under OBBB.
• Other indexed items:
• Unindexed items:

Treasury/IRS Penalty Relief for Remittance Transfer Providers (IR-2025-102)

• Date: Oct 7, 2025. IRS issues Notice 2025-55 granting limited deposit penalty relief for the first three quarters of 2026 related to the new remittance transfer excise tax under the One, Big, Beautiful Bill (OBBB).
• Relief conditions: Providers avoid deposit penalties if they make timely deposits (even if miscalculated) and pay any underpayment by the Form 720 due date for that quarter.
• Safe harbor: Providers may use excise tax deposit safe harbor rules for Q1–Q3 2026 despite underpayments, but must meet the reasonable cause standard.
• Tax details: Starting Jan 1, 2026, providers must collect a 1% tax on certain remittances made with cash, money orders, cashier’s checks, or similar instruments; make semimonthly deposits; and file quarterly returns. First deposit due Jan 29, 2026.
• More info: See Notice 2025-55 and Form 720 guidance.

Jarod Koopman to Lead IRS Enforcement (Acting CTCO)

• Jarod Koopman named Acting Chief Tax Compliance Officer, overseeing enforcement divisions: LBI, SB/SE, TE/GE, Criminal Investigation (CI), Office of Professional Responsibility, Return Preparer Office, and Whistleblower Office.
• Background: CI executive since 2016; built Cyber Crimes and Cyber and Forensics Services; led IRS-CI’s growth in crypto tracing and dark web investigations.
• Field leadership: Former ASAC in Chicago and SAC in Detroit; managed sensitive, high-profile cases in MI and IL.
• Earlier roles: Supervisory Special Agent (W.D.N.Y.), Senior Analyst at IRS HQ (ASLP graduate), worked on identity theft as a national priority in 2012.
• Bio: Upstate NY native; Nazareth University graduate; FLETC and IRS-CI training top graduate.
• Additional leadership move: Stewart Pearlman to serve as acting Deputy Chief in CTCO; prior roles include acting Deputy COO, ACA IT team lead, CIO Chief of Staff, and Procurement Chief of Staff (2019–2025).

IRS Appeals Launches Post Appeals Mediation (PAM) Pilot

• The IRS Independent Office of Appeals launched a two-year pilot to make PAM more attractive to taxpayers.
• Under the pilot, mediation cases are reassigned to an Appeals team not connected to the original case to provide a fresh, expedited look; other PAM features remain unchanged.
• PAM occurs after an unsuccessful Appeals process and typically lasts one day, with a neutral Appeals mediator; taxpayers may add a co-mediator at their expense.
• Goal: enhance ADR offerings, improve taxpayer experience, and encourage faster, mutually acceptable resolutions before potential litigation.
• Appeals also promotes broader use of its five ADR programs: Fast Track Settlement, Fast Track Mediation—Collection, PAM, Rapid Appeals Process, and Early Referral.
• Contact for questions: [email protected].

Volunteers Needed for No-Cost Tax Services (VITA/TCE)

• IRS and community partners are recruiting volunteers for VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) for the upcoming filing season.
• Who they help: EITC-eligible taxpayers, people with disabilities, limited English speakers, seniors, and other underserved groups.
• No experience required: Free IRS training provided; roles include greeters, preparers, marketing, and IT support.
• Flexible options: Nationwide sites, in-person and virtual; evening/weekend hours available.
• Tax pros: Eligible for IRS CPE credits (EAs, non-credentialed preparers, CTEC/CRTP).
• When to sign up: October–January for this season; later sign-ups are kept for next season. Recent sign-ups (last 2 months) don’t need to reapply unless contact info changed.
• How to sign up: Visit IRS.gov/volunteers or use the VITA/TCE Volunteer and Partner Sign Up; expect local site options and a virtual orientation within ~14 days.

IRS Extends Feedback Period on Form 6765 (Research Credit)

• Comment period for draft Instructions to Form 6765 extended through March 31, 2026; IRS plans revised instructions in Jan 2026 (for TY 2025/processing 2026).
• Section G of Form 6765 will be optional for all filers for tax year 2025.
• Starting tax year 2026 (processing 2027), Section G becomes mandatory for all filers, with optional reporting for:
• Research credit claim transition period (45 days to perfect refund claims) extended through Jan 10, 2027.
• Refund claims postmarked after June 18, 2024 must identify business components, related research activities, and totals for qualified wages, supplies, and contract research (Form 6765 may be used).

Guidance on Opportunity Zone Investments in Rural Areas (OBBB)

• Treasury and IRS issued Notice 2025-50 clarifying Opportunity Zone (QOZ) rules for rural areas under the One, Big, Beautiful Bill (OBBB).
• New rural definition: any area not a city/town over 50,000 population and not an adjacent urbanized area to such a city/town; applies across states, DC, and U.S. territories.
• Substantial improvement threshold reduced: for property in QOZs comprised entirely of rural areas, required additions to basis drop from 100% to 50% (effective July 4, 2025).
• Scope: Applies to tangible property in qualifying rural QOZs on/after July 4, 2025 that is being or has been substantially improved.
• Context: Of 8,764 QOZs nationwide, 3,309 are entirely rural. Further guidance is planned on the next round of OBBB-authorized zones (nominations/designations).

IRS Announces New Relief for Taxpayers Affected by Events in Israel

• The IRS is postponing many tax filing and payment deadlines to Sep 30, 2026, for eligible individuals and businesses affected by ongoing events in Israel.
• Covered by Notice 2025-53, building on Notice 2023-71 and Notice 2024-72; collectively, deadlines from Oct 7, 2023 through Sep 30, 2026 may be postponed for eligible taxpayers.
• Applies to affected taxpayers in Israel, the West Bank, and Gaza; returns and taxes due in the covered period can be filed/paid by Sep 30, 2026.
• Automatic relief for taxpayers whose principal residence or business is in the covered area (based on prior filings).
• Others who qualify but have addresses outside the covered area can call the IRS disaster hotline at 866-562-5227 (or +1-267-941-1000 internationally) to request relief.

Treasury, IRS Reduce PTIN User Fee

• Treasury and IRS issued interim final regs and a proposed rule to lower the PTIN user fee for tax professionals.
• New fee: $10 IRS user fee (down from $11) + $8.75 paid to a third-party contractor.
• Effective with the next PTIN renewal cycle beginning Oct 16, 2025. PTIN fee is nonrefundable; penalties may apply for not having/using a valid PTIN.
• Expected volume: 900,000+ initial or renewal applications per cycle over the next three cycles.
• Comments on the proposed rule are due by Oct 30, 2025 via Regulations.gov (reference “IRS” and “REG-108673-25”); mailing address provided for paper submissions.
• PTINs expire Dec 31 each year. Apply/renew online at the PTIN portal (about 15 minutes) or by paper using Form W-12 (about six weeks processing).