e-News for Tax Professionals 2025-46

Tax professionals should encourage their clients to take steps now to prepare for the upcoming filing season. IRS.gov/GetReady includes tips on what’s new and what to consider before filing.

The first of a series of special IRS "Get Ready" reminders helps tax professionals and taxpayers prepare for the 2026 tax filing season. A little advance work preparing paperwork and organizing information now can help with filing tax returns quickly and accurately.

It’s important for taxpayers to get ready now because the One, Big, Beautiful Bill can significantly affect federal taxes, credits and deductions. The IRS and Treasury are working to implement the new legislation, including providing information on the new tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest, the new temporary deduction for seniors and others. The IRS will release new information as it becomes available.

Organized tax records help tax professionals file complete and accurate tax returns and avoid errors that could delay refunds. The IRS reminder includes a list of documents clients should start collecting. Tax preparers should wait to file until they've received all tax records.

Taxpayers should also get ready by establishing an IRS online account. Online accounts allow taxpayers to access personal tax information, including recently filed returns, securely. Taxpayers can also perform a variety of other tasks through the tool, as explained in the IRS reminder.

As tax professionals already know, direct deposit is the fastest way to receive a refund. Additionally, in accordance with Executive Order 14247, the IRS began phasing out paper tax refund checks on Sept. 30, 2025. Tax professionals should remind their clients to get their routing and account numbers ready so their refunds will be directly deposited into their bank accounts.

2. Comments Requested on Implementation of the New Federal Tax Credit for Individual Contributions to Scholarship Granting Organizations Under the One, Big, Beautiful Bill

The Department of the Treasury and the Internal Revenue Service are requesting comments on the implementation of a new tax credit for individuals established under the One, Big, Beautiful Bill. This new credit applies to contributions to Scholarship Granting Organizations (SGOs) serving elementary and secondary school students from low- and middle-income families.

Beginning Jan. 1, 2027, individual taxpayers may claim a nonrefundable federal tax credit for cash contributions to SGOs providing scholarships for elementary and secondary education expenses. The credit allowed to any taxpayer is limited to $1,700.

For contributions to an SGO in a state or the District of Columbia to be eligible for this credit, the state must first choose to participate by providing the IRS with a list of the SGOs located in the state that satisfy the SGO requirements.

Notice 2025-70 announces that Treasury and the IRS intend to issue proposed regulations and are currently seeking comments from interested parties on issues that should be addressed in the forthcoming regulations. Specifically, Treasury and the IRS welcome comments on the following issues:

A participating state’s required annual certification of SGOs within the state that meet the statutory requirements to qualify as an SGO;
Policies and procedures implemented by electing states to ensure that the required certification is accurate and complete;
Issues involving single-state organizations, organizations that may fundraise and award scholarships in more than one state, and organizations operating under other fact patterns that may wish to qualify as SGOs; and
SGOs’ reporting and recordkeeping requirements.

Tax professionals and other commentors can use the Federal e-Rulemaking portal to submit comments (indicate “IRS-2025-0466”) by Dec. 26, 2025. Alternatively, paper submissions can be sent to: Internal Revenue Service, CC:PA:01:PR (Notice 2025-70), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

3. 2025 Nationwide Tax Forum Online: Stand Out as a Trusted Tax Professional

One of the highlighted seminars of the IRS Nationwide Tax Forum Online (NTFO) is Stand Out as a Trusted Tax Professional: A Gude to Prepare Accurate Refundable Tax Credit Returns for Your Clients. This seminar provides an overview of the rules for refundable tax credits, clarifies eligibility requirements, and highlights additional resources, training and tools available at no cost to tax professionals through the IRS’s online Tax preparer toolkit.

Tax professionals can earn one continuing education credit for purchasing and taking this seminar. This seminar, along with 14 additional self-study seminars recorded at the 2025 IRS Nationwide Tax Forum, cost $29 per credit. Tax pros can also review NTFO presentations for free. To access the seminars, please visit irstaxforumonline.com. The IRS Nationwide Tax Forum Online is a continuing education provider certified by the National Association of State Boards of Accountancy and the IRS Return Preparer Office.

4. Don’t Let Grinchy Scammers Ruin Holiday Gift Card Giving

Tax professionals and their clients should be aware of gift card scams year-round. But in advance of National Tax Security Awareness Week, they should be especially cautious during this time of year when requests for gift cards are common.

Scammers may use a compromised email account to send emails requesting gift card purchases for friends, family or co-workers.

Tax professionals can remind their clients that the IRS never asks for or accepts gift cards as payment for a tax bill.

The IRS sees a variety of scams as thieves are always changing their tactics. During the holiday season thieves could also:

Request gift cards over the phone, sending a text message, email or social media message through a government impersonation scam.
Pose as an IRS agent and call the taxpayer or leave a voicemail with a callback number informing the taxpayer that they are linked to some criminal activity.
Threaten or harass the taxpayer by telling them that they must pay a fictitious tax penalty.

Criminals often ask the victim to purchase gift cards from various stores so as not to arouse suspicion with store employees. Once the taxpayer buys the gift cards, the scammer will ask the taxpayer to provide the gift card number and PIN.

How can tax professionals and their clients tell it’s the IRS calling? Remember the IRS will never:

Call to demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they owe. Tax professionals should remind their clients of their rights.
Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for not paying.
Threaten to revoke the taxpayer's driver's license, business licenses or immigration status.

Anyone who has been a target of a scam should contact the Treasury Inspector General for Tax Administration at 800-366-4484 to report a phone scam. Taxpayers targeted by phone scams can also report to the Federal Trade Commission or email IRS at [email protected].

5. Reminder: Tax Professionals Have Until Dec. 31 to Renew Their Preparer Tax Identification Number

The IRS is reminding tax professionals to renew their Preparer Tax Identification numbers now, if they haven’t already. Anyone who prepares or helps with preparation of tax returns for compensation must have a valid PTIN. Tax professionals must include their PTIN on any return or claim for refund filed with the IRS.

PTINs will expire on December 31, 2025. Renewing is simple and can be completed in about 15 minutes.

Existing PTIN holders can log into their account through the IRS Tax Professional PTIN System. The registered tax professional will need to complete an online renewal application by verifying their personal information and answering a few questions. The fee to renew or get a PTIN for 2026 is $18.75, which is non-refundable. After payment, the IRS will send the applicant confirmation the PTIN has been renewed.

First-time applicants may also use the IRS Tax Professional PTIN system to apply online. The applicant will need to:

Create an account using their name and an email address that they can always access
Review the PTIN application checklist: What you need to get started
Complete the online application by providing personal information, tax return information and professional credentials
Pay the PTIN fee by credit, debit or ATM card or eCheck.

The applicant will receive a PTIN once they complete all steps and the IRS receives payment.

Using the PTIN system, tax professionals can also:
See a list of their completed continuing education courses
View a summary of the number returns filed using their PTIN during the year
Receive communications through a secure mailbox from the IRS Return Preparer Office
Track their progress toward participating in the IRS Annual Filing Season Program.

6. Technical Guidance

Notice 2025-72 announces that the Department of the Treasury and the Internal Revenue Service intend to issue regulations that allocate foreign taxes paid or accrued by a foreign corporation affected by the repeal of the one-month deferral election between its short year and its succeeding taxable year. The notice also announces amendments that the Department of the Treasury and the IRS intend to propose to the regulations under section 987 to accommodate short taxable years.

Section 70352(c)(1)(C) of the One Big Beautiful Bill Act repealed the one-month deferral election under section 898(c)(2). Foreign corporations with a one-month deferral election in place are required to have a one-month short year in order to transition to the taxable year of their majority U.S. shareholder.

Notice 2025-73 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for September 2025 used under § 417(e)(3)(D), the 24-month average segment rates applicable for October 2025, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Notice 2025-74 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for October 2025 used under § 417(e)(3)(D), the 24-month average segment rates applicable for November 2025, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Notices 2025-72, 2025-73 and 2025-74 will be in Internal Revenue Bulletin 2025-51, dated December 15, 2025.

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