Issue Number: 2026-10Inside This Issue
New option for requesting more time after ERC claim disallowance
The IRS recently announced a new, streamlined way for small businesses to extend the period for the IRS and the IRS Independent Office of Appeals to review a response to the disallowance of an Employee Retention Credit claim to avoid refund litigation. Small businesses can file Form 907, Agreement to Extend the Time to Bring Suit, if they meet both of these conditions:
- Waiting for the IRS to consider their response to the notice of disallowance on Letter 105-C or 106-C
- Have six months or less remaining before their two-year period expires.
The IRS is sending Notice CP320B to taxpayers identified as eligible for this new Form 907 submission method. Step-by-step instructions are available at IRS.gov/CP320B. Small businesses can also submit Form 907 requesting an extension through the IRS Document Upload Tool by going to IRS.gov/DUTReply and selecting notice ‘CP320B’ from the drop-down menu. For full details see the news release. Back to Top
IRS issues Whistleblower Alert to help uncover fraud
The IRS recently issued Whistleblower Alert asking for more information about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, businesses and individuals. Small businesses should report what they know using Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip. Whistleblower awards pay up to 30% of the proceeds collected if attributable to the whistleblower's information. More information about the Whistleblower Program is available at IRS.gov/Whistleblower and the news release. Back to Top
Taxpayer Advocacy Panel Annual Report now available
In its 2025 Annual Report, the Taxpayer Advocacy Panel highlights IRS accomplishments and efforts to improve delivery, communication with taxpayers, reduce taxpayer burden and support continued transformation efforts. The recommendations focus on:
- Improving taxpayer notices
- Enhancing online tools and digital services
- Streamlining IRS correspondence
- Improving the clarity of IRS tax forms and publications
- Reinforcing the importance of in-person assistance
- Reducing wait time on IRS toll-free phone lines
The full 2025 TAP Annual Report is available to download on ImproveIRS.org. Back to Top
IRS issues disaster tax relief for Mississippi and HawaiiBusinesses and individuals in Mississippi affected by the severe winter storm that began on Jan. 23, 2026, now have until June 8, 2026, to file various federal individual and business tax returns and make tax payments. Businesses and individuals in Hawaii affected by flooding and mudslides due to severe storms that began on March 10, 2026, now have until July 8, 2026, to file various federal individual and business tax returns and make tax payments. The IRS automatically identifies taxpayers located in covered disaster areas and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief. The Tax relief in disaster situations page on IRS.gov has the most recent tax relief info for taxpayers affected by a disaster. Back to Top
IRS issues annual update to Form 656-B, Offer in Compromise Booklet The IRS released its annual update to Form 656-B, Offer in Compromise Booklet. An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The booklet includes all the forms small businesses need to file an offer in compromise and includes new information on how to file an offer electronically through an IRS Individual Account. It also leads small businesses and tax professionals through a series of steps to help calculate an appropriate OIC based on assets, income, expenses and future earning potential. For more information, see the offer in compromise page on IRS.gov. Back to Top
Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
Back to Top
Thank you for subscribing to e-News for Small Business an IRS email service.
This message was distributed automatically from the mailing list e-News for Small Business. Please Do Not Reply To This Message
RECEIVE TEXT MESSAGES FROM THE IRS!
Did you know you can now receive IRS bulletins directly on your mobile phone?
Stay informed wherever you are with convenient text message updates. Some IRS topics like IRS Newswire and QuickAlerts are available for text subscription, giving you faster access to important information through a new, easy-to-use communication channel.
Additional topics will be added throughout the year, expanding the information you can receive by text.
Opt-in today to start receiving IRS text message bulletins and stay connected on the go.
To subscribe to or unsubscribe from another list, please go to the e-News Subscriptions page on the IRS website.
|
No comments:
Post a Comment