Monthly CPA Newsletter: Oct 2025
Key IRS / Treasury Updates — Oct 2025
IRS releases tax year 2026 inflation adjustments (Revenue Procedure 2025-32
On Oct. 9, the IRS issued inflation adjustments for over 60 tax provisions for tax year 2026, which incorporate changes from the One, Big, Beautiful Bill (OBBB). IRS+13IRS+31RS+3
Implication for CPAs: Update tax-planning models, with attention to changes in rate brackets, standard deductions, and indexed thresholds under OBBB.
Penalty relief for remittance transfer providers (Notice 2025-55)
On Oct. 7, Treasury and IRS issued guidance offering limited deposit penalty relief for providers of remittance transfers who may miscalculate remittance transfer excise tax for the first three quarters of 2026, so long as timely deposits are made and underpayments are paid by the quarterly return deadline. IRS+1
Implication for CPAs: For clients in the remittance (money transfer) business, this gives some breathing room during the early transition period under the new OBBB excise tax regime.
Leadership & structural change — Jarod Koopman named Acting Chief Tax Compliance Officer
On Oct. 6, the IRS announced that Jarod Koopman would oversee enforcement functions at the agency under a new role. IRS+1
Implication for CPAs: This signals a stronger focus on enforcement and compliance. Be alert for shifts in audit priorities, communications, and emphasis from the IRS.
IRS launches Post Appeals Mediation pilot
On Oct. 1, the IRS Independent Office of Appeals rolled out a two-year Post Appeals Mediation pilot to allow an alternative path for resolving disputes after appeals. IRS+1
Implication for CPAs: This offers a potentially attractive mechanism for resolving contested issues without further litigation or protracted negotiation. Evaluate whether clients with pending appeals should consider mediation.
Extension of feedback period on draft Form 6765 (Research Credit)
Also on Oct. 1, the IRS extended the comment period for the draft instructions and reporting rules for Form 6765 (Credit for Increasing Research Activities). IRS
Implication for CPAs: Firms and clients engaged in R&D should consider submitting comments and closely monitor final guidance. Also, planning for 2025 R&D elections (accelerated deduction vs amortization) will remain uncertain until this is resolved.
IRS contingency planning during shutdown / furloughs
Because of the lapse in appropriations, the IRS began furloughing many non-excepted employees starting Oct. 8, 2025, retaining only essential personnel. IRS+3Submission & Cromwell +3Current Federal Tax Developments+3
The IRS has published a contingency plan outlining which operations will continue from Oct. 8, 2025 through April 30, 2026. Current Federal Tax Developments+1
Implication for CPAs: Expect delays in many IRS services (audits, correspondence, processing). Be proactive in managing client expectations. Prioritize critical IRS filings and communications, and consider earlier submissions where possible.
IRS reminds taxpayers with extension of the Oct. 15 deadline
On Oct. 14, the IRS reminded taxpayers who had filed for extension that their 2024 returns are due by Oct. 15, and that the shutdown does not change that obligation. IRS
Implication for CPAs: Ensure that extension clients understand they still must file by the deadline and pay any balance due timely to avoid penalties and interest.
IRS QuickAlert: Tax Year 2025 Assurance Testing System (ATS) now Open
The IRS has opened the Modernized e-File (MeF) Assurance Testing System for Tax Year 2025 as of October 1, 2025.
Software developers and transmitters must complete the ATS Questionnaire for each tax software package they plan to test. Only authorized e-file users with Principal, Responsible Official, or Delegate roles can submit questionnaires and obtain a Software ID number.
For assistance, contact the IRS e-Help Desk at 866-255-0654.
