Issue Number:  2026-33

Inside This Issue

1. IRS, Security Summit remind tax pros they need a Written Information Security Plan to protect client data

2. Guidance on rollovers between retirement plans and individual retirement accounts

3. IRS establishes Office of Conservation Easements and transitions settlement process

4. Upcoming IRS webinar: Foreign Filer Transmitter Control Code (TCC) Registration

5. Did you know? Appealing IRS decisions

6. Technical guidance

1.  IRS, Security Summit remind tax pros they need a Written Information Security Plan to protect client data

Federal law requires tax and accounting professionals to create and maintain a Written Information Security Plan to help protect client information from identity thieves and data breaches. The IRS offers publications and other resources to help tax professionals develop, test, and update these plans.

This is the third installment of a five-part summer series focused on tax professional security. The “Protect Your Clients; Protect Yourself” campaign provides timely tips to help protect sensitive taxpayer data and businesses from identity theft.

A good WISP focuses on three areas:

• Employee management and training,

• Information systems, and

• Detecting and managing system failures.

Publication 5708, Creating a Written Information Security Plan for Your Tax & Accounting Practice, provides a template to help tax professionals, especially smaller practices, develop a WISP. The publication guides users through starting a plan, including understanding security compliance requirements and professional responsibilities.

As part of a security plan, the IRS recommends that tax professionals develop a data theft response plan, including contacting IRS Stakeholder Liaison to report a security incident.

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2.  Guidance on rollovers between retirement plans and individual retirement accounts

The Department of the Treasury and the IRS provided guidance to simplify and standardize the rollover process.

Notice 2026-49 provides sample forms along with proposed rollover procedures and protocols that aim to simplify and standardize the rollover process for both participants and plan sponsors. It applies to rollovers between retirement plans or between a retirement plan and an individual retirement account (IRA), but not to IRA-to-IRA transfers.

Treasury and the IRS request comments from tax professionals on the sample forms, the proposed rollover procedures, and the other guidance in the notice. Comments are due by Oct. 23, 2026. The notice includes complete instructions for submitting comments.

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3.  IRS establishes Office of Conservation Easements and transitions settlement process

The IRS announced the establishment of an Office of Conservation Easements. The Office will centralize technical expertise and coordinate policy, enforcement, and case-resolution strategy across the IRS and with the Office of Chief Counsel. It will support engagement with taxpayers, practitioners, conservation and historic preservation organizations, and other stakeholders. The Office will also work with Treasury to evaluate administrative and legislative options that advance Congress’s conservation and historic preservation objectives, promote consistent tax administration, and strengthen valuation integrity.

As part of this transition, the IRS concluded the current uniform settlement initiative effective Aug. 19, 2026. The IRS will not issue any additional uniform settlement letters under the May 13 program. Any deadlines for accepting previously issued offers are withdrawn. Prior elections to participate in the May 13 settlement framework will remain in effect and the IRS will process them in accordance with their terms.

Tax professionals whose clients have pending cases may continue to request settlement under the May 13 framework through their assigned IRS examination or Chief Counsel representative.

Tax professionals should continue working directly with their clients’ assigned representatives on case-specific matters and settlement requests. Once operational, the Office of Conservation Easements will provide central coordination and a channel for general inquiries.

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4.  Upcoming IRS webinar: Foreign Filer Transmitter Control Code (TCC) Registration

The IRS is hosting an upcoming webinar for tax professionals:

• Title and registration link: Foreign Filer Transmitter Control Code (TCC) Registration

• Date: Wednesday, August 26, 2026

• Time: 8 p.m. Eastern, 7 p.m. Central, 6 p.m. Mountain, 5 p.m. Arizona & Pacific, 4 p.m. Alaska, 2 p.m. Hawaii

• Length: 75 minutes including a live Q&A session

• CE credit: One (1) Federal Tax CE credit

• Topics: After completing this session, participants will be able to:

  • Understand TCC and set up a Foreign Filer TCC Account;

  • Complete and submit registration for a TCC GIIN;

  • Monitor updates for TCC GIIN approval;

  • Request a TCC; and

  • Avoid common errors and prepare for IDES enrollment

• Questions? Send an email to cl.sl.web.conference.team@irs.gov

Closed captioning is offered in English.

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5.  Did you know? Appealing IRS decisions

Tax professionals and their clients have the right to appeal an IRS decision in an independent forum. This means they’re entitled to a fair and impartial administrative appeal of most decisions made by the IRS, including many penalties.

Tax professionals and their clients can ask the Independent Office of Appeals to review their cases. Appeals operates separately from the IRS offices that make original determinations. Appeals provides a fair and unbiased review of the applicable tax matter.

To request an appeal, tax professionals must complete a written request and mail it to the IRS office that sent the letter with their appeal rights. The IRS office that receives the request will attempt to resolve the disputed tax issues. If that office can't resolve the issues, they will forward the case to Appeals.

It’s important that tax professionals and their clients do not send their requests directly to Appeals. This will only delay the process and may prevent Appeals from considering the case.

To learn more about appeals, tax professionals can refer to two recent IRS Tax Tips:

• Taxpayer rights include being able to appeal an IRS decision in an independent forum

• How to request help with the IRS Independent Office of Appeals

Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree, provides additional information.

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6.  Technical guidance

Treasury and the IRS recently:

• Announced ICE Endex is a “qualified board or exchange” within the meaning of Section 1256(g)(7)(C);

• Issued interim guidance on safe harbor for taxpayers claiming the carbon capture credit;

• Proposed rules to protect refundable tax credits from abuse by illegal aliens; and

• Updated FAQs about the limitation on the deduction for business interest expense.

ICE Endex is a “qualified board or exchange” within the meaning of Section 1256(g)(7)(C)

Tax professionals whose clients trade on ICE Endex should note that Revenue Ruling 2026-16 holds that ICE Endex is a “qualified board or exchange” within the meaning of Section 1256(g)(7)(C). ICE Endex is a regulated exchange of the Netherlands that offers electronic trading.

Interim guidance on safe harbor for taxpayers claiming the carbon capture credit

Notice 2026-50 provides interim guidance, pending the issuance of regulations, relating to the credit for carbon oxide sequestration under Section 45Q of the Internal Revenue Code. This reflects the Environmental Protection Agency’s proposed regulations to amend the Greenhouse Gas Reporting Program to remove reporting obligations imposed under subpart RR of 40 CFR part 98. See 90 F.R. 44591 (Sept. 16, 2025). This notice modifies and amplifies Notice 2026-1 by expanding the scope of the safe harbor provided in Notice 2026-1 to include qualified carbon oxide that is used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and the determination of the amount of qualified carbon oxide subject to recapture. This notice also extends the applicability date of the safe harbor provided in Notice 2026-1.

Proposed rules to protect refundable tax credits from abuse by illegal aliens

The Department of the Treasury and the IRS issued proposed regulations to apply and clarify the federal law regarding the eligibility requirements for taxpayer-funded refundable individual income tax credits.

The proposed regulations strengthen enforcement of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) by clarifying that the refunded portion of certain refundable individual income tax credits are federal public benefits and establishing clear rules governing who is legally eligible to receive them.

The proposed regulations apply PRWORA to four individual income tax credits: the adoption tax credit, the child tax credit, the American opportunity tax credit, and the earned income tax credit. Only the refunded portion of the affected credits is treated as a federal public benefit.

The proposed regulations would apply to tax years ending on or after the date the regulations are published as final regulations.

Treasury and the IRS will seek public comments and requests for a public hearing on all aspects of the proposed regulations. Complete instructions for submitting comments are included in the proposed regulations.

Updated FAQs about the limitation on the deduction for business interest expense

The IRS updated frequently asked questions about the limitation on the deduction for business interest expense.

The updated FAQs are available in fact sheet FS-2026-14 which revises FS-2025-09, issued in December 2025.

Note: Revenue Ruling 2026-16 and Notice 2026-50 will be in Internal Revenue Bulletin 2026-36, dated Aug. 31, 2026.

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