October 2025: IRS USA Tax Updates

IRS Extends Feedback Period and Reporting Deadlines for Research Credit (Form 6765)

The IRS has extended the comment period for the draft Instructions for Form 6765 (Research Credit) through March 31, 2026, and made Section G optional for tax year 2025. It also extended the research credit claim transition period through January 10, 2027, giving taxpayers more time to comply and submit complete refund claims. 

Read the article here: IRS extends the period for feedback on Form 6765 | Internal Revenue Service 

IRS Announces Pilot Program to Strengthen Post Appeals Mediation (PAM)

The IRS Independent Office of Appeals has launched a two-year pilot program to enhance the Post Appeals Mediation (PAM) process, allowing an independent Appeals team to review cases for a “fresh look.” The goal is to make PAM more appealing to taxpayers and improve the efficiency of resolving tax disputes before litigation. 

Read the article here: IRS Independent Office of Appeals starts Post Appeals Mediation pilot program | Internal Revenue Service 

New IRS Notice Eases Compliance for Remittance Transfer Providers Under OBBB

The Treasury Department and IRS issued Notice 2025-55, granting deposit penalty relief for remittance transfer providers during the first three quarters of 2026 as they implement the new 1% remittance transfer tax under the One, Big, Beautiful Bill (OBBB). Relief applies if deposits are timely, even if miscalculated, provided full payment is made by the Form 720 due date. 

Read the article here: Treasury, IRS provide penalty relief for remittance transfer providers who fail to deposit excise tax under the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Issues 2026 Inflation Adjustments Affecting Key Deductions and Tax Brackets

The IRS released 2026 annual inflation adjustments affecting more than 60 tax provisions, including tax rate schedules and key deductions. Under the One, Big, Beautiful Bill (OBBB), the standard deduction increases, estate and adoption credits rise, and several benefits like the EITC and employer-provided childcare credit see significant boosts. Details are outlined in Revenue Procedure 2025-32. 

Read the article here: IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Provides 2025 Transition Guidance for Car Loan Interest Reporting Under OBBB

The Treasury Department and IRS issued Notice 2025-57, offering transitional relief for 2025 to lenders required to report car loan interest under the One, Big, Beautiful Bill (OBBB). Lenders can meet reporting obligations by providing borrowers with total interest details through online portals or statements, with no penalties for compliant reporting during this transition year. 

Read the article here: Treasury, IRS provide transition relief for 2025 for businesses reporting car loan interest under the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Issues FAQs on Employee Retention Credit Limitations Under the OBBB

The IRS released Fact Sheet 2025-07, providing FAQs on the limitation of Employee Retention Credit (ERC) claims for the third and fourth quarters of 2021 filed after Jan. 31, 2024, as outlined in the One, Big, Beautiful Bill (OBBB). The FAQs explain filing deadlines, timeliness, and taxpayers’ appeal rights for disallowed ERC claims. 

Read the article here: IRS issues FAQs to address Employee Retention Credits under ERC compliance provisions of the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Issues FAQs on Form 1099-K Threshold Under the One, Big, Beautiful Bill

The IRS released Fact Sheet 2025-08, clarifying that under the One, Big, Beautiful Bill (OBBB), the Form 1099-K reporting threshold reverts to $20,000 and 200 transactions, the pre-ARPA standard. This change applies retroactively, easing reporting requirements for third-party settlement organizations like payment apps and online marketplaces. 

Read the article here: IRS issues FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill; dollar limit reverts to $20,000 | Internal Revenue Service 

IRS Announces Start of 2026 PTIN Renewal Window for Tax Professionals

The IRS announced that the 2026 PTIN renewal season is now open for tax professionals. All paid preparers and enrolled agents must renew by December 31, 2025, with a $18.75 non-refundable fee. This year introduces a new ID.me login system to enhance security for accessing the IRS Tax Professional PTIN platform. 

Read the article here: IRS reminds tax pros to renew PTINs for the 2026 tax season | Internal Revenue Service