August 2026: IRS USA Tax Updates

The IRS continues to roll out new guidance, digital tools, and compliance initiatives as tax administration evolves. August 2026 brings several important developments for taxpayers, businesses, tax professionals, and accounting firms, from changes to retirement savings and business deductions to enhanced cybersecurity requirements and new IRS digital services.

For accounting and tax professionals, staying current with these developments is essential to providing accurate client guidance, maintaining compliance, and preparing for upcoming filing seasons.

Here’s a roundup of the key IRS tax updates from August 2026.

Tax & Legislative Updates

Treasury and IRS Issue Guidance on the Permanent Expansion of Paid Family and Medical Leave

The Treasury Department and IRS have issued guidance on the permanent expansion of the Paid Family and Medical Leave Tax Credit under the Working Families Tax Cuts.

The legislation makes the credit permanent and expands certain eligibility provisions for employers that provide qualifying paid family and medical leave to their employees. The new guidance provides additional clarity on how employers can determine eligibility and claim the credit.

Read the article here: Treasury, IRS issue guidance on the permanent expansion of paid family and medical leave

IRS Updates FAQs on the Qualified Overtime Deduction

The IRS has updated its frequently asked questions regarding the qualified overtime deduction, providing additional clarification on the deduction and how it applies to taxpayers.

The updated FAQs are part of the IRS’s continuing guidance following changes introduced under the Working Families Tax Cuts.

Read the article here: IRS updates FAQs on qualified overtime deduction

IRS Updates Guidance on the Business Interest Expense Deduction

The IRS has updated its FAQs concerning the limitation on the deduction for business interest expense under Section 163(j).

The updated guidance reflects legislative changes and provides additional clarification regarding the calculation of adjusted taxable income and the treatment of certain business interest expenses.

For tax years beginning after December 31, 2025, taxpayers will need to consider the updated rules when determining their allowable business interest deduction.

Read the article here: IRS updates FAQs about the limitation on the deduction for business interest expense

Treasury and IRS Propose Rules to Protect Refundable Tax Credits from Abuse

The Treasury Department and IRS have proposed regulations aimed at preventing abuse of certain refundable tax credits.

The proposed rules are intended to strengthen eligibility and verification requirements and help prevent improper claims involving refundable credits.

Read the article here: Treasury and IRS propose rules to protect refundable tax credits from abuse

Retirement & New Tax-Saving Opportunities

Treasury and IRS Move Forward with Saver’s Match Regulations

The Treasury Department and IRS have announced their intent to issue proposed regulations implementing the Saver’s Match, a federal retirement savings contribution designed to benefit eligible low- and moderate-income taxpayers.

The initiative is part of the implementation of Executive Order 14403 and is intended to provide additional support to qualifying taxpayers who contribute toward retirement savings.

Read the article here: Treasury, IRS begin implementing Executive Order 14403 on Saver’s Match

Proposed Regulations Address Employer Contributions to Trump Accounts

Treasury and the IRS have issued proposed regulations addressing employer contributions to Trump Accounts under the Working Families Tax Cuts.

The proposed rules provide guidance for employers that choose to contribute to these accounts for employees or their dependents and address related nondiscrimination requirements.

Employers may contribute up to $2,500 annually to a Trump Account for an employee or their dependents, subject to applicable requirements.

Read the article here: Treasury, IRS issue proposed regulations on employer contributions to Trump Accounts

Treasury and IRS Issue Proposed Regulations on Eligible Investments for Trump Accounts

The Treasury Department and IRS have also issued proposed regulations addressing which investments may be held within Trump Accounts.

The proposed rules generally require investments during the account’s growth period to meet specific requirements, including investment in eligible mutual funds or exchange-traded funds that track qualifying equity indexes primarily made up of U.S. companies.

The regulations also address requirements concerning leverage, fees, and the administration of eligible investments.

Read the article here: Treasury, IRS issue proposed regulations on eligible investments for Trump Accounts

Treasury and IRS Issue Guidance on Retirement Plan and IRA Rollovers

The Treasury Department and IRS have issued guidance intended to simplify certain rollover transactions between retirement plans and individual retirement accounts.

Notice 2026-49 provides sample forms and proposed procedures for direct rollovers between retirement plans and between retirement plans and IRAs. The sample forms are optional and do not apply to IRA-to-IRA transfers.

Read the article here: Treasury, IRS issue guidance on rollovers between retirement plans and individual retirement accounts

IRS Digital Services & Tax Administration

Business Tax Account Expands Online Tax Management Capabilities

The IRS has expanded its Business Tax Account, giving eligible businesses and organizations more secure and convenient ways to manage their federal tax obligations online.

Businesses can access additional tax information, notices, payment-plan details, transcripts, and other account-related services through the platform. The IRS is also expanding the ability for eligible users to provide account access to certain employees.

Read the article here: Business Tax Account gives eligible taxpayers more secure ways to manage federal tax obligations

IRS Launches Digitally Authenticated Tax Compliance Report

The IRS has launched a digitally authenticated Tax Compliance Report through IRS Online Account.

The report allows taxpayers to securely obtain proof of their federal tax compliance for situations such as applying for a loan, employment, government benefits, or other services requiring tax compliance information.

The report includes an IRS-issued digital certificate that allows organizations to verify its authenticity.

Read the article here: IRS launches digitally authenticated Tax Compliance Report

IRS Online Services Give Taxpayers More Ways to Get Things Done

The IRS continues to expand its online services for individuals, businesses, and tax professionals.

Through IRS Individual Online Account, taxpayers can view balances, make payments, access transcripts, check refund status, and manage certain notices. Businesses can use Business Tax Account for various tax-related services, while tax professionals can use Tax Pro Account to manage certain authorization requests and taxpayer relationships.

Read the article here: IRS online services spotlight: Taxpayers can get more done online

IRS Reminds Extension Filers to Use IRS Free File

The IRS is reminding taxpayers who requested an extension for their 2025 federal tax return that they can still use IRS Free File to complete their return before the October 15, 2026 deadline.

Eligible taxpayers can access guided tax preparation software through Free File, while taxpayers above the income threshold can use Free File Fillable Forms.

The IRS also reminds taxpayers that an extension gives additional time to file, but not additional time to pay any tax owed.

Read the article here: IRS reminder: Extension filers can use IRS Free File this summer

IRS Information Return E-Filing System Is Transitioning to a New Platform

The IRS has reminded tax professionals and information return filers that the Filing Information Returns Electronically (FIRE) system is transitioning to the Information Returns Intake System (IRIS).

Current FIRE users will need to prepare for the transition before the 2027 filing season. The IRS has announced November 19, 2026, as the final date for filing information returns through FIRE.

Read the article here: IRS reminder: Information return e-file system transitioning to a new platform

Tax Professional & Compliance Updates

Security Summit Warns Tax Pros About Phishing Emails and Other Attacks

The IRS and its Security Summit partners have warned tax professionals about phishing emails and other cyberattacks designed to steal sensitive taxpayer information.

The warning is part of the annual “Protect Your Clients; Protect Yourself” summer campaign, which provides tax professionals with practical guidance for identifying threats and strengthening cybersecurity practices.

Read the article here: Security Summit warns tax pros to watch out for phishing emails and other attacks

IRS Reminds Tax Pros to Maintain a Written Information Security Plan

The IRS and Security Summit partners have reminded tax professionals of the importance of maintaining a Written Information Security Plan (WISP) to protect taxpayer information.

A WISP should address areas such as employee training, risk assessment, information systems, safeguards, monitoring, and procedures for responding to security incidents. Firms should also regularly review and update their security plans as their operations and technology evolve.

Read the article here: IRS reminds tax pros they need a written information security plan

IRS CEO Meets with Tax Professionals at New York Tax Forum

IRS Chief Executive Officer Frank J. Bisignano met with tax professionals during the IRS Nationwide Tax Forum in New York to discuss developments affecting taxpayers and the tax profession.

Topics included the implementation of Trump Accounts, guidance under the Working Families Tax Cuts, lessons from the 2026 filing season, and preparations for the 2027 filing season.

Read the article here: IRS CEO meets with tax professionals at NY Tax Forum

IRS Compliance & Enforcement

IRS Establishes Office of Conservation Easements and Transitions Settlement Process

The IRS has established an Office of Conservation Easements as part of its continued focus on compliance involving conservation easement transactions.

The IRS has also introduced a settlement process for eligible taxpayers involved in certain conservation easement cases, providing a structured approach for resolving qualifying disputes.

Read the article here: IRS establishes Office of Conservation Easements and transitions settlement process

IRS Announces Fourth-Quarter 2026 Interest Rates

The IRS has announced that federal tax interest rates will remain unchanged for the fourth quarter of 2026, beginning October 1, 2026.

For individuals, the rate for both tax underpayments and overpayments will remain at 7% per year, compounded daily. The rate for corporate overpayments will be 6%, while the rate for large corporate underpayments will remain at 9%.

Read the article here: Interest rates remain the same for the fourth quarter of 2026

Staying Ahead of IRS Changes

August’s IRS updates demonstrate how quickly the tax landscape continues to evolve. From new rules surrounding Trump Accounts and retirement savings to expanded digital services, cybersecurity requirements, tax deductions, and IRS enforcement initiatives, there is plenty for tax professionals to keep track of.

For accounting firms, staying informed is only the first step. The real value comes from turning these updates into actionable guidance, accurate filings, and better client service.

At Infinity Globus, we support CPA and accounting firms with scalable tax and accounting solutions that help manage workloads, maintain quality, and keep teams focused on their highest-value work.

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IRS Tax Tips

Keep Your WISP Current

Cybersecurity should not be treated as a once-a-year exercise. Review your Written Information Security Plan regularly, train employees on emerging threats, and make sure your firm’s safeguards keep pace with changing technology.

Prepare for the FIRE-to-IRIS Transition

If your firm currently uses FIRE to file information returns, start preparing for the transition to IRIS now. Early preparation can help prevent unnecessary disruptions during the 2027 filing season.

Review New Tax Guidance Before Year-End Planning

Updates involving qualified overtime, business interest deductions, paid family and medical leave, and retirement accounts may affect client planning. Review the latest IRS guidance and identify clients who may be impacted before year-end tax planning begins.

Make Better Use of IRS Digital Tools

Encourage clients to take advantage of IRS Online Account and other digital services where appropriate. Faster access to transcripts, balances, notices, payments, and tax compliance information can make routine tax administration more efficient.

Stay Updated. Stay Compliant. Stay Ahead.

The IRS continues to introduce changes that can directly impact taxpayers, businesses, and tax professionals. Keeping up with these developments can help accounting firms identify opportunities, reduce compliance risks, and provide better guidance to their clients.