IRS to Close its E-Filing System in 2 Weeks
We know how wonderful December can be with this holiday season. It brings us joy, gratitude, and the excitement of giving while spending time with our family, friends, and those closest to us. It can also be a busy time too. For this reason, we wanted to provide you with a reminder if this is applicable to you.
For the 2025 calendar year, the IRS will close its federal e‑file system on December 26, 2025, at 11:59 a.m. ET, after which electronically filed tax returns will no longer be accepted until the system reopens for the 2026 filing season in late January 2026. The shutdown affects both individual and business returns, and while other service functions (such as retrieving acknowledgements) may remain available later into the day, no new e‑file submissions will be accepted after 11:59 a.m. ET on December 26. If this applies to you and you believe you have 2024 or prior year returns that need to be changed or filed, planning with us so we can submit your returns well before this cutoff can help ensure processing before the e‑file window closes.
It is also important to note that once the e-file system closes for the year, the IRS will no longer accept electronic filing for 2022 tax returns through their system. Taxpayers wishing to file or amend tax year 2022 returns after the shutdown will need to paper file by mail. Generally, the IRS accepts current and two prior years electronically only when their system is open.
IRS Finalizes Key 2026 Forms, including Withholding Changes, ACA Filing Updates, and International Compliance
The IRS has finalized several key forms and publications for the 2026 tax year, including significant revisions to Forms W-4 and W-4P required under the One Big Beautiful Bill Act (OBBBA). The updated Form W-4, which is an IRS form that employees complete for their employer to compute the correct amount of federal income tax to withhold from their paycheck, expands to five pages and incorporates a higher child tax credit, revised default withholding rules, a more detailed deductions worksheet, and a new checkbox for claiming exemption from withholding. Form W-4P has been similarly updated to ensure alignment for pension and annuity withholding.
In addition, the IRS issued final versions of Forms 1042 and 1042-S with meaningful changes for international withholding. Beginning with forms due in 2027, electronic filing will transition from the FIRE system to the IRS IRIS portal. The revised forms introduce mandatory exemption codes when withholding is below the standard 30% rate, enhanced address fields, and the elimination of the substitute dividend credit-forward mechanism. Form 1042 also now supports direct deposit for refunds and includes new guidance on borrow fee refunds. Together, these updates reflect the IRS’s continued efforts to modernize reporting, improve accuracy, and streamline compliance across payroll withholding, ACA filing, and cross-border tax obligations.
IRS Issues Guidance on Changes to Health Savings Accounts
The IRS has issued Notice 2026-5, providing updated guidance regarding recent changes affecting Health Savings Account (HSA) eligibility under the One Big Beautiful Bill Act (OBBBA). The Act allows high-deductible health plans (HDHPs) to offer telehealth and other remote-care services before the deductible is met, effective for plan years beginning on or after January 1, 2025. Beginning January 1, 2026, bronze and catastrophic plans offered through an Exchange will be treated as HSA-compatible even if they do not meet traditional HDHP requirements, and the guidance clarifies that these plans need not be purchased through an Exchange to qualify.
The notice also confirms that, as of January 1, 2026, individuals who are otherwise HSA-eligible and enrolled in certain direct primary care (DPC) service arrangements may contribute to an HSA and may use HSA funds on a tax-free basis to pay qualifying direct primary care periodic fees. Notice 2026-5 provides detailed clarification on each of these provisions.
For more information: https://bit.ly/3KThKxz
IRS Announces 2025 Retirement Plan Required Amendments List
The IRS has issued the 2025 Required Amendments (RA) List for individually designed qualified plans and IRC §403(b) plans. This annual list identifies changes in qualification and §403(b) requirements that require corresponding plan amendments. The RA List also applies to pre-approved plans for purposes of interim amendments.
Under IRC §401(b), retirement plans may be amended retroactively to comply with updated qualification requirements, provided the amendments are adopted within the applicable remedial amendment period. For individually designed plans, December 31, 2027, generally marks the end of the remedial amendment period—and the amendment deadline—for any disqualifying provision arising from a change in qualification requirements on the 2025 RA List, as well as any form defect stemming from a change in §403(b) requirements included on the List.
For pre-approved plans, December 31, 2027, is likewise the typical deadline for plan providers (or adopting employers) to adopt any required interim amendments to correct disqualifying provisions or form defects. Governmental plans may have extended deadlines for both individually designed and pre-approved plans.
