IRS In Audio – Details, episodes & analysis

IRS to Phase Out Paper Tax Refund Checks

📢 Key Update:

• Starting Sept. 30, 2025, the IRS (with Treasury) will phase out paper tax refund checks for individual taxpayers, per Executive Order 14247.
• This is the first step in a broader transition to electronic payments.

💡 Why the Change?

1. Protect taxpayers: Paper checks are 16x more likely to be lost, stolen, altered, or delayed than electronic refunds.
2. Faster refunds: Direct deposit refunds usually arrive in <21 days; mailed checks may take 6+ weeks.
3. Cut costs: Processing electronic payments is cheaper and more efficient.

👩‍👩‍👧 Impact on Taxpayers:

• Filing unchanged — taxpayers continue filing as usual.
• Refunds go digital — mostly via direct deposit or other secure methods.
• For the unbanked: Options will include prepaid debit cards or digital wallets.
• Act now: IRS urges taxpayers to have valid banking info or consider opening a low-cost/free account (FDIC GetBanked, MyCreditUnion.gov).

📊 Context:

• In the 2025 tax season, IRS issued 93.5M refunds → 93% by direct deposit, only 7% by paper check.

🔜 Next Steps:

• Executive Order 14247 also applies to payments made to the IRS (like taxes owed) — current systems remain until new guidance is issued.
• IRS will publish detailed filing/payment guidance before the 2026 season.
• Updates will be posted on IRS.gov and shared nationwide.

👉 Bottom Line: Paper refund checks are ending. The IRS is going digital to boost security, speed, and savings, with special support to help unbanked taxpayers transition smoothly.

IRS Extends Drought Relief for Farmers and Ranchers

What Happened:

• IRS issued Notice 2025-52, extending tax relief for farmers and ranchers who sold livestock due to drought.
• Relief applies across 49 states, D.C., and other regions with drought (Sept. 2024 – Aug. 2025).

Who Qualifies:

• Eligible: Sales/exchanges of livestock held for draft, dairy, or breeding purposes.
• Not eligible: Livestock raised for slaughter, for sporting purposes, or poultry.

Relief Provided:

• Normally, replacement of drought-sold livestock must occur within 2 years.
• Extended to 4 years due to drought conditions.
• If drought persists, IRS can extend further.
• New rule: Farmers get until the end of the first tax year after the first drought-free year following the 4-year period.
• Example: If the deadline was end of 2025, now extended to the next tax year.

How Eligibility is Determined:

• Based on National Drought Mitigation Center designations of exceptional, extreme, or severe drought.

Further Resources:

• Notice 2006-82: Provides detailed examples of how the rule works.
• Publication 225 (Farmer’s Tax Guide): Guidance for reporting drought sales and other farm tax issues.

Big Picture:
This extension gives affected farmers and ranchers more time & flexibility to restore herds without immediate tax burden, easing recovery from widespread drought impacts.

Summary:The IRS is inviting the public to participate in an anonymous feedback survey on tax preparation and filing options. This survey is part of the Department of Treasury and IRS efforts to fulfill a reporting requirement to Congress under the One Big Beautiful Bill Act. The law mandates that Treasury deliver a report to Congress by October 2, 2025, addressing key issues related to free tax filing options for the public.

Key Details:

• Public feedback survey open through September 5, 2025
• Survey participation is anonymous
• The report to Congress will inform future policies on free tax filing options
• The survey can be accessed via the Free Online Tax Preparation Feedback Survey or the IRS.gov landing page

Summary:

The IRS announced the application window for the 2026 CAP program, running September 3 through October 31, 2025. Successful applicants will be informed in February 2026. CAP promotes real-time issue resolution between large corporations and the IRS, preventing disputes after returns are filed.

Key details:

• Applicants must have assets of $10 million or more.
• Eligible entities: U.S. publicly traded corporations (required to file SEC 10-K, 10-Q, 8-K) or privately held C-corporations, including foreign-owned.
• Privately held applicants must submit audited financial statements with an unqualified audit opinion (GAAP, IFRS, or approved standard) and unaudited quarterly reports.
• Audited financials must reconcile with Schedule M-3 Line 4(a).
• Entities under investigation or litigation restricting IRS access are not eligible.

Next steps:

Full program details and updates available on the IRS CAP webpage.

Summary:
The IRS and Security Summit partners highlight three core defenses against tax-related identity theft: multi-factor authentication (MFA), Identity Protection PINs (IP PINs), and IRS Online/Tax Pro Accounts. The update stresses that MFA is now a federal requirement under the FTC Safeguards Rule for protecting client data and encourages all taxpayers to enroll in IP PINs and set up secure IRS Online Accounts.

Key takeaways:

• MFA is mandatory for tax professionals and strongly recommended wherever client data is accessed or stored. It blocks attacks that exploit weak or stolen passwords.
• IP PINs are six-digit codes that help prevent fraudulent e-filing using someone’s SSN. The program is voluntary, identity-verified, and refreshed annually.
• IRS Online Account helps taxpayers securely view account details and prevents creation of fraudulent accounts. Tax Pro Account lets practitioners manage authorizations and request POA/Tax Information Authorization digitally.
• The Security Summit (IRS, states, industry, and tax pros) continues its annual “Protect Your Clients, Protect Yourself” series and features security sessions at the Nationwide Tax Forum events in Orlando (Aug 26), Baltimore (Sept 9), and San Diego (Sept 16).

Action steps:

• For taxpayers: Create an IRS Online Account; enroll in an IP PIN after verifying your identity; never share your IP PIN except with the IRS and a trusted preparer; beware of calls/emails/texts asking for the IP PIN (the IRS won’t ask).
• For tax pros: Enable MFA everywhere (tax software, cloud storage, remote access, practice management tools); evaluate MFA methods regularly; never share usernames; use Tax Pro Account to manage client authorizations; ensure firm-wide compliance with the FTC Safeguards Rule.

Notable reminders:

• Tax pros cannot obtain IP PINs for clients—clients must get their own.
• MFA should be used on both local systems and any software or services that store client data.
• Identity theft victims will continue to receive annual IP PINs automatically.

Resources to search on IRS.gov:

• “Get an IP PIN”
• “IRS Online Account”
• “Tax Pro Account”
• “Security Summit” and Nationwide Tax Forum details

Summary:
The IRS has announced that, as part of the phased implementation of the One Big Beautiful Bill Act, there will be no changes to individual information returns or federal income tax withholding tables for Tax Year 2025. This means that forms such as W-2, existing 1099s, Form 941, and other payroll return forms will remain unchanged for 2025. Employers and payroll providers should continue using current procedures for reporting and withholding.

These decisions are intended to avoid disruptions during the tax filing season and to give the IRS, businesses, and tax professionals enough time to implement future changes effectively.

Looking Ahead:
For Tax Year 2026, the IRS is preparing new guidance and updated forms, including changes to how tips and overtime pay are reported. The IRS will coordinate with employers, payroll providers, and tax professionals to ensure a smooth transition. More information will be shared in the coming months about how taxpayers can claim OBBBA-related tax benefits when they file their returns.

Summary:
The Internal Revenue Service (IRS) has issued a reminder that employers can continue to use educational assistance programs to help employees pay down student loans through December 31, 2025. Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment, and these payments are not counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Key Points:

• Employers can contribute up to $5,250 per year, per employee, for student loan repayment, tax-free.
• This benefit is available through December 31, 2025.
• Student loan payments can be included as part of broader educational assistance programs, which also cover tuition, books, and other education expenses.
• For more information, employers should refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits.

The Internal Revenue Service (IRS) reminds tax professionals that space is filling up quickly for the remaining 2025 IRS Nationwide Tax Forum events. Forums in Chicago, New Orleans, and San Diego have already sold out. The IRS encourages those planning to attend in Orlando or Baltimore to register before the standard rate deadlines.

Key Points:

• The IRS Nationwide Tax Forum is a major event for tax professionals, offering education and updates.
• Forums in Chicago, New Orleans, and San Diego are sold out.
• Registration is still open for Orlando and Baltimore, but space is limited.
• Tax professionals are urged to register as soon as possible to secure their spot and take advantage of the standard rate.

The IRS is reminding taxpayers in twelve states affected by 2024 disaster declarations that they automatically have until May 1, 2025, to file and pay their 2024 federal income taxes. Find out if you're in an eligible area and what other tax relief may be available.

Facing a tax bill you can't pay by the deadline? Don't worry! This episode breaks down the IRS's reminder about available payment plan options, helping you understand how to navigate your tax obligations without unnecessary penalties.