On December 9, Treasury and the IRS released Notice 2025-119, guidance that summarizes the health savings account (HSA) expansions enacted in last summer’s tax and spending cuts reconciliation law. In Q&A form, the guidance clarifies what the terms mean and how the rules work.
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Treasury/IRS Release Q&A Guidance on HSA Expansion
Topics: Advocacy Health Savings Accounts IRS
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IRS, Experts Offer Tax-Deductible Overtime Pay Clarifications
The Internal Revenue Service (IRS), in Notice 2025-69, has issued more guidance on the tax deduction for qualified overtime (OT). Even with this Notice, though, official guidance—especially for tax year 2025—is still skimpy. In the meantime, experts offer important clarifications that will be helpful to employers with employees who may qualify for the tax deduction.
Topics: Advocacy IRS
2 min read
IRS Releases Inflation Adjustments for Retirement Plan Limits for 2026
In Notice 2025-67, the IRS announced inflation-adjusted limits for 2026 for retirement savings plans. The adjustments reflect the indexing of these limits that is required by law. They are effective as of January 1, 2026. They are:
Topics: Advocacy Retirement Plans IRS
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Deduction for Qualified Overtime Pay Raises Reporting Issues
Workers who receive qualified overtime pay in 2025 are entitled to an up to $12,500/individual tax deduction if they earn less than $150,000. That means employers have to track and report qualified overtime pay. New guidance on how to do that is expected, but current guidance is limited.
Topics: Taxes IRS
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IRS Releases Draft Instructions for ACA Reporting
The Internal Revenue Service (IRS) has released draft instructions for Affordable Care Act (ACA)-required reporting of offers of employee health insurance coverage and employee enrollment in health insurance coverage. The instructions will be for Forms 1094-C and 1095-C.
Topics: Affordable Care Act Taxes IRS
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IRS Releases Guidance on Reporting Third-Party Transactions
The Internal Revenue Service (IRS) has released guidance on how to report third-party transactions. The reporting thresholds increased via a provision in the spending/tax cuts law enacted this past July. The new transaction thresholds are 200 transactions in a year and/or transactions that exceed $20,000. The previous threshold was any transaction that exceeded $600.
Topics: Taxes Federal Advocacy IRS
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IRS Issues FAQs on ERTC Issues
On October 22 the Internal Revenue Service (IRS) released guidance in the form of frequently-asked questions (FAQs) on the new Employee Retention Tax Credit (ERTC) compliance provisions. The new compliance provisions were enacted last summer in the tax/spending cuts reconciliation bill that was signed into law on July 4.
Topics: Taxes Federal Advocacy IRS
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IRS Issues Final Rules for Catch-Up Contributions to Retirement Plans
On September 16, the Internal Revenue Service (IRS) and Treasury released final regulations implementing the SECURE 2.0 new rules for catch-up contributions to retirement savings plans. The final regulations (TD 10033/RIN 1545-BR11) implement the SECURE 2.0 rule that requires high-paid retirement savers to make their catch-up contributions on a Roth basis.
Topics: Retirement Plans Government Relations IRS
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IRS Releases Inflation Adjustments for 2026
A slew of indexed tax limits and benefits adjust each year for inflation. The Internal Revenue Service (IRS) has released Rev.Proc.2025-32, which lists many of these adjustments. Generally, the adjustments amount to about two percent for 2026.
Topics: Taxes Government Relations IRS
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ACA Employer Mandate Penalties Increase
In Rev.Proc. 2025-2026, the Internal Revenue Service (IRS) announced inflation adjustment increases in the Affordable Care Act employer mandate penalties. The penalties are based on whether an applicable large employer (ALE) fails to offer affordable health insurance to at least 95 percent of its full-time employees and at least one of those employees receives a premium tax credit to buy individual health insurance. An ALE is an employer with 50 or more full-time equivalent employees. Affordability is measured by employee contributions to the cost of their employer-provided health care—penalties attach if those contributions exceed maximum percentages of their compensation.
Topics: Health Care Affordable Care Act IRS
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IRS Announces Inflation-Adjusted Affordability Standard for ACA Health Insurance
The Internal Revenue Service (IRS) has announced the 2026 inflation adjustment for determining the affordability of employer-provided Affordable Care Act (ACA) health insurance. For 2026, the affordability standard will be 9.96 percent of a worker’s compensation. Failure to adhere to the affordability standard results in a “shared responsibility” penalty imposed on employers.
Topics: Health Care Affordable Care Act IRS
Senate Approves Long Nomination as IRS Commissioner
On June 12, the Senate approved President Trump’s nominee, former Missouri Congressman Billy Long, for Internal Revenue Service Commissioner on a partisan vote of 53-46. The Finance Committee on June 5 approved Long on a partisan 14-13 vote. The Committee held a hearing on his nomination on May 20. The nomination is for a 5-year term.
Topics: IRS
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IRS Sets HDHP/HSA/HRA 2026 Limits
The Internal Revenue Service (IRS) has announced the inflation-adjusted limits for high deductible health plans (HDHPs), Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs) for 2026. Also announced were 2026 limits for excepted benefits HSAs.
Topics: Taxes IRS
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IRS Issues Tax Guidance on State Paid Leave Program Benefits
On January 22, the Internal Revenue Service (IRS) issued guidance on how employers should deal with the tax requirements of contributions and benefits paid under state paid and family leave programs. The guidance comes in Rev.Rul. 2025-4.
Topics: IRS
1 min read
IRS Extends Deadline for SECURE 2.0 RMD Rules
Last month the Internal Revenue Service (IRS) announced an extension, to January 1, 2026, for rules to accommodate the SECURE 2.0 required minimum distribution (RMD) rules. The December 18 announcement came in IRA Announcement 2025-2.
Topics: Retirement IRS SECURE 2.0
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IRS Announces Inflation Adjustments for Retirement Plan Contributions
On November 1, the Internal Revenue Service (IRS) announced the inflation-adjusted limits for contributions in 2025 to retirement and other benefit plans.
Topics: Retirement Planning IRS
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Treasury Issues 403(b) Guidance on Long-Term Part-Time Employees
On October 3, the Internal Revenue Service (IRS) and Treasury issued new guidance, Notice 2024-73, on coverage requirements for long-term part-time employees (LTPTE), beginning in 2025. SECURE 2.0, enacted late in 2022, includes a provision requiring employer-sponsored retirement plans to allow long-term (those with service of two years or more) part-time (those who work at least 500 hours/year) to participate in the employer-sponsored retirement savings plan.
Topics: Retirement Legislation & Regulations 401(k) Congress IRS SECURE 2.0
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IRS Expands Process for Correcting ERTC Claims
On September 26, the Internal Revenue Service (IRS) announced it is opening its employee retention tax credit (ERTC) corrections program to allow tax professionals, payroll companies and other third parties that filed ERTC claims on behalf of a business to make corrections to their clients’ claims under the agency’s voluntary disclosure program.
Topics: Taxes IRS
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Treasury/IRS Seek Information on SAVER’s Match Rules
On September 5, the Internal Revenue Service (IRS) and the Treasury Department issued a Request for Information (RFI) on how to implement the new SAVER’s Match rules enacted in last year’s SECURE 2.0, The RFI, issued in Notice 2024-65, requests comments on “all aspects of SAVER’s Match contributions” and includes specific questions on an array of SAVER’s Match issues.
Topics: IRS SECURE 2.0 Saver's Match Rules
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IRS Releases Guidance on Matching Contributions for Student Loan Payments
On August 19, the Internal Revenue Service (IRS) released new guidance, Notice 2024-63, that explains how employers can treat their employees’ student loan payments as retirement plan deferrals, and match them under the employer match terms of their retirement plans. The guidance implements the provision in SECURE 2.0 which Congress enacted into law last year.
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