Issue Number: 2026-20Inside This Issue
IRS urges strengthening defenses against tax identity theft
In the fourth installment of a five-part series, IRS and Security Summit partners urge taxpayers and tax professionals to be watchful for tax identity theft and to use identity tools to help protect them. Multifactor authentication, for instance, requires at least two verification factors to verify identity and protect against phishing and other technological attacks. An IRS Identity Protection PIN prevents thieves from filing fraudulent tax returns. Taxpayers are encouraged to create an IRS Individual Online Account which allows users to securely view their tax information. See the news release for more details on identity protection. Back to Top
Protect tax records before disaster strikes
September is National Preparedness Month. The IRS reminds businesses, taxpayers and tax professionals on the importance of making or updating emergency plans, securing important financial or tax documents and becoming familiar with IRS disaster resources to protect tax records before disaster strikes. Disaster preparedness steps include:
- Keep documents safe. Store important records in waterproof and fireproof containers.
- Create electronic copies. Scan papers and records on a secure device.
- Document valuable property. Take photos and videos for tax purposes and insurance claims.
- Review emergency plans. Visit Ready.gov for resources and a checklist to help individuals and businesses prepare.
- Know how to access tax records. Use IRS Individual Online Account or Business Tax Account to access tax information.
For more information on protecting tax records, see the news release. Back to Top
Guidance Issued on Clean Fuel Tax Credit
The IRS issued Notice 2026-53 providing guidance on the Section 45Z Clean Fuel Production Tax Credit, helping farmers, ranchers and fuel producers understand how to claim the credit while supporting domestic biofuel production. The notice includes the 2026 emissions rate table, transition relief for certain requirements and guidance on manure-derived fuels and regenerative agricultural practices. The updates provide taxpayers with greater certainty, encourage investment in U.S. biofuels and strengthen American agriculture. Back to Top
IRS extends drought tax relief for farmers and ranchers
The IRS extended tax relief for farmers and ranchers in 49 states and other regions affected by drought conditions between Sept.1, 2025 and Aug. 31, 2026. The tax relief gives eligible farmers and ranchers more time to meet certain federal tax obligations when drought conditions force the sale of livestock. This includes requirements related to reporting livestock sales and gains.
Notice 2026-54 lists the areas that qualify for this relief and Notice 2006-82 provides examples of how the provision works. For information on reporting drought sales and other farm-related tax issues refer to Publication 225, Farmer’s Tax Guide found on IRS.gov. Back to Top
Disaster tax relief is available for Hawaii, Montana and Indiana
Below is information about recent disaster related tax relief granted by the IRS.
- Businesses and individuals affected by the earthquake in Hawaii County that began on May 22, 2026, now have until Feb. 1, 2027 to file various federal business and individual tax returns and make tax payments.
- Businesses and individuals affected by severe storms, straight-line winds and flooding in the Oglala Sioux Tribe that began on June 2, 2026, now have until Feb. 1, 2027 to file various federal business and individual tax returns and make tax payments.
- Businesses and individuals affected by severe storms, straight-line winds, tornadoes and flooding in Indiana that began on August 11, 2026, now have until Feb. 1, 2027 to file various federal business and individual tax returns and make tax payments.
The IRS automatically identifies taxpayers located in covered disaster areas and applies filing and payment relief. 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.
Visit the Tax relief in disaster situations page on IRS.gov for the most recent information for taxpayers affected by a disaster. Back to Top
Applications open for 2027 Compliance Assurance Process
The IRS is accepting applications for the 2027 Compliance Assurance Process (CAP) until Oct. 31, 2026. The CAP program works in collaboration between large corporate taxpayers and the IRS to improve federal tax compliance by resolving tax issues before a return is filed. Details on eligibility requirements are available in the news release and applicants will be notified in Feb. 2027. Interested applicants can visit Highlights and Updates for the CAP 2027 Application Period or Compliance Assurance Process on IRS.gov for more information. Back to Top
Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
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