Issue Number:  2026-20

Inside This Issue

1. Business Tax Account S and C corp Designated Officials must renew registration June 15 to July 29

2. Time-limited settlement opportunity for eligible clients involved in conservation easement disputes

3. Get help in the Digital Account Services Room during the IRS Nationwide Tax Forum

4. Tax relief for taxpayers impacted by severe storms in the State of Hawaii

5. Did you know? Providing feedback to the IRS

6. Technical guidance

1.  Business Tax Account S and C corp Designated Officials must renew registration June 15 to July 29

Any tax professional or client who registered as a Business Tax Account user in 2025 as a Designated Official for an S or C corporation must revalidate their status between June 15 and July 29 to renew their role. They must renew annually to maintain access to Business Tax Account. To renew, sign in.

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2.  Time-limited settlement opportunity for eligible clients involved in conservation easement disputes

The IRS announced the terms of a time-limited settlement opportunity for eligible clients involved in conservation easement or historic preservation easement disputes with the IRS.

Since 2020, the IRS has offered settlement initiatives in these cases that were significantly more favorable than the outcomes clients generally achieve in the Tax Court. Under each of those prior initiatives, clients were required to pay penalties on their underpayments and were not permitted to claim a charitable contribution deduction for the claimed donation, being limited solely to a deduction for estimated out-of-pocket costs.

This new time-limited settlement opportunity is intended to advance the goals of the prior initiatives while addressing barriers that may have discouraged acceptance. Under this new offer initiative, qualifying cases will no longer be required to make an upfront payment of the settlement amount, and instead the liability will be subject to post-settlement collection as described below. Separately, qualifying cases where prior settlement offers expired or were rejected by the client will have the renewed ability to settle their cases. The offer will also be extended to qualifying cases that did not previously have the opportunity to participate in an IRS settlement initiative.

The tax law allows an income tax deduction for property owners who relinquish certain rights in land or buildings to preserve those properties for future generations. Over time, however, Congress, the IRS, and courts have identified serious abuses, leading to legislative changes, enforcement actions, settlement initiatives, and civil and criminal judgments.

In recent litigation, the government has consistently prevailed. On average, the Tax Court has only allowed 6% of the original claimed deduction and has generally imposed a 40% gross valuation misstatement penalty, plus interest.

Learn more about how promoters have peddled syndicated easement transactions and how badly these transactions have fared in court at the Conservation easements page on IRS.gov.

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3.  Get help in the Digital Account Services Room during the IRS Nationwide Tax Forum

The Digital Account Services Room at the IRS Nationwide Tax Forum provides tax professionals with personalized, one-on-one assistance from IRS representatives specializing in digital account services and practitioner support. IRS representatives will be available by appointment to help resolve issues, answer questions, and provide guidance on IRS online tools and services. Assistance is available for topics including CAF and authorization issues, e-Services and e-file applications, online accounts, PTIN and Enrolled Agent programs, transcript access, and identity authentication support.

Appointments are required and must be scheduled the same day services are requested. Availability is limited and offered on a first-come, first-served basis during operating hours.

Learn more on the Digital Account Services Room and other highlights, and don’t forget to register for the Nationwide Tax Forum.

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4.  Tax relief for taxpayers impacted by severe storms in the State of Hawaii

The IRS updated the news release for affected individuals and businesses in Hawaii to change the filing and payment deadlines from July 8, 2026, to Aug. 20, 2026.

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5.  Did you know? Providing feedback to the IRS

The IRS invites tax professionals to share feedback that can help improve IRS policies, practices, and procedures. Tax professionals should continue to resolve client-specific issues using IRS help tools. But issues that may impact a large number of taxpayers should be elevated to IRS Stakeholder Liaison.

Tax practitioners who are members of a professional organization should contact that organization to elevate issues to IRS Stakeholder Liaison. Other tax professionals can find use the Stakeholder Liaison contacts page on IRS.gov to report issues.

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6.  Technical guidance

The IRS recently:

• Updated the weighted average interest rates, yield curves, and segment rates;

• Shared the 2026 Cumulative List of Changes in Plan Qualification Requirements for Defined Benefit Qualified Pre-approved Plans; and

• Issued the June 2026 applicable federal rates.

Update for weighted average interest rates, yield curves, and segment rates

Notice 2026-31 sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for April 2026 used under section 417(e)(3)(D), the 24-month average segment rates applicable for May 2026, and the 30-year Treasury rates, as reflected by the application of section 430(h)(2)(C)(iv).

2026 Cumulative List of Changes in Plan Qualification Requirements for Defined Benefit Qualified Pre-approved Plans

Notice 2026-34 sets forth the 2026 Cumulative List of Changes in Plan Qualification Requirements for Defined Benefit Qualified Pre-approved Plans, also known as the 2026 Cumulative List. The 2026 Cumulative List assists providers applying to the IRS for opinion letters for the fourth remedial amendment cycle for defined benefit qualified pre-approved plans under the IRS’s pre-approved plan program. Cycle 4 began on April 1, 2025. The Cycle 4 submission period begins on Aug. 1, 2026, and ends on July 31, 2027. The 2026 Cumulative List identifies recent changes in the qualification requirements of the Internal Revenue Code that were not taken into account during the first three remedial amendment cycles for defined benefit qualified pre-approved plans and that will be taken into account by the IRS with respect to the form of a plan submitted to the IRS for Cycle 4.

June 2026 applicable federal rates

Revenue Ruling 2026-11 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section 1274.

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Note: Notices 2026-31 and 2026-34 will be in Internal Revenue Bulletin 2026-23, dated June 1, 2026. Revenue Ruling 2026-11 will be in Internal Revenue Bulletin 2026-24, dated June 8, 2026.

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