News & Updates

The IRS Identity Protection PINs, also referred to as IP PINs, are a critical defense tool against identity thieves. The IRS encourages all tax pros and taxpayers to establish an IRS Online Account that allows secure access to IRS account information online. This account also guards against fraudsters from attempting to create accounts on their behalf.

What tax pros should know about MFA

A key part of tax professional security now focuses on MFA, which strengthens account security by requiring more than just a username and password to confirm an identity when accessing any system, application or device. Key points include:

• All tax professionals are required to use MFA to protect clients’ sensitive information under the Federal Trade Commission’s (FTC) safeguards rule.
• Authentication factors include something only a user knows, like a username and password; something they have, like a token or random number sequence sent to their cell phone; or something unique, like biometric information.

• These factors assure that a tax professional’s client, not an impostor, is gaining access.
• MFA helps protect against phishing, social engineering and other technology attacks that exploit weak or stolen passwords.
• MFA best implementation practices include:
  • Implement MFA across all their services and data access points.
  • Evaluate current MFA methods, standards and new technologies.
  • Offer a variety of authentication factors to suit the needs of different users.
  • Enable MFA within tax software products and cloud storage services containing sensitive client data.
  • Never share usernames.

In addition, MFA should be used to secure client information on a tax pro’s computer or network and to access client information stored within their tax preparation software. MFA is required by law for all companies – not just tax professionals. The size of the company does not matter. Failure to use MFA in tax prep software violates the FTC safeguards rules.

IP PIN facts and how to get one

Here are a few key things taxpayers and tax professionals should know about the IP PIN:

• It’s a six-digit number known only to the taxpayer and the IRS.
• The opt-in program is voluntary, though strongly encouraged.
• The IP PIN is valid for one calendar year; a new IP PIN is generated yearly.
• Only taxpayers who can verify their identities may obtain an IP PIN.
• IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN.
• Tax professionals cannot obtain an IP PIN on behalf of clients; taxpayers must obtain their own.
• To obtain an IP PIN, visit the IRS Get an IP PIN page.
• The IP PIN process for confirmed victims of identity theft remains unchanged, and victims will automatically receive an IP PIN each year.

IRS Online Account and Tax Pro Account

In addition to enrolling in the IP PIN program, the IRS encourages taxpayers to establish an IRS Online Account and tax professionals to create their Tax Pro Account.

IRS Online Account

• Provides secure online access to IRS account information.
• Helps prevent fraudsters from creating a false account.
• Allows taxpayers to share information with a trusted tax professional.

Tax Pro Account

• Offers secure management of active client authorizations.
• Enables submission of authorization requests directly to a taxpayer’s IRS Online Account.
• Allows requests for power of attorney or tax information authorization from clients.

These tools help protect against the threat of tax-related identity theft for taxpayers and tax professionals alike. Learn more at Tax Pro Account.

Security Summit and the Nationwide Tax Forums

The “Protect Your Clients, Protect Yourself" summer series is part of an annual education effort by the Security Summit. This group includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud.

Security is a key focus of the Nationwide Tax Forum, which is being held in five cities this summer throughout the U.S. In addition to the series of five news releases, tax professional security will be featured at the forums, which are three-day continuing education events. The remaining forums are Aug. 26 in Orlando, Sept. 9 in Baltimore and Sept. 16 in San Diego.

The IRS reminds tax pros that registration deadlines are quickly approaching for several forums, which can sell out.

Tax professionals should also stay connected to the IRS through subscriptions to e-News for tax professionals and IRS social media sites.

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Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment without those payments being counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Employers can include student loan payments as part of their broader educational assistance programs, which traditionally cover tuition, books, and other education expenses.

See Publication 15-B, Employer’s Tax Guide to Fringe Benefits for more information about setting up or administering educational assistance plans.

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Taxpayers who owe taxes should file their tax return and pay as soon as they can. Interest and penalties will continue to accrue on the owed taxes until the balance is paid in full. Even if a taxpayer cannot afford to immediately pay the full amount of taxes owed, they should still file a tax return and pay as much as possible.

Online payment options

Individuals can pay taxes owed securely through IRS Online Account, IRS Direct Pay, The Electronic Federal Tax Payment System (EFTPS), debit/credit card or digital wallet. Taxpayers may also apply online for a payment plan, including installment agreements.

Those who pay electronically get immediate confirmation after submitting payment. Direct Pay and the EFTPS allow taxpayers to receive payment email notifications. For additional payment information visit Make a payment.

Having trouble paying? IRS has options to help

Taxpayers that are unable to pay in full by the tax deadline should still file their tax return, pay what they can and explore a variety of payment options available for the remaining balance. The IRS offers help for those with tax debt, including applying online for a payment plan. Taxpayers can receive an immediate response of payment plan acceptance or denial without having to call or write the IRS to check their application status.

Online payment plan options include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.

• Long-term payment plan – New simple payment plans criteria make it easier and more accessible to enter a long-term payment plan when the total balance owed is less than $50,000 in combined tax, penalties and interest. Taxpayers may make monthly payments for up to the collection statute (usually 10 years), in most cases. Payments may be set up using direct debit (automatic bank withdrawal) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. Taxpayers should remember that extending the time to pay will increase the applicable penalties and fees.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Visit Additional information on payment plans for details on payment plan costs and benefits.

Requesting penalty relief

When taxpayers receive a penalty notice from the IRS, they should read it carefully and follow the instructions for requesting relief. Taxpayers who have filed and paid their taxes on time and have not been assessed any penalties for the past three years, generally qualify to have the penalty abated. Visit Administrative penalty relief to learn more about first time penalty relief and other administrative waivers.

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Taxpayers that receive income not subject to withholding, such as income from self-employment, gig work, interest, dividends, capital gains, rent or 1099 earnings, may need to make estimated tax payments throughout the year. This includes freelancers, retirees, investors, businesses and corporations.

Why it matters?

Paying on time helps taxpayers avoid falling behind on their taxes and possible underpayment penalties.

Who needs to pay estimated tax?

• Taxpayers including sole proprietors, partners and S corporation shareholders who expect to have a tax liability of at least $1,000 for the year.
• Corporations that expect to owe tax of $500 or more. See Publication 542, Corporations.
• Individuals earning income from gig work, freelance work or from sales of goods and services, even if they receive a Form 1099-K. Recipients of Form 1099-K, Payment Card and Third Party Network Transactions PDF must use it with other tax records to report income.

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For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the interest rates:

• 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
• 4.5% for the portion of a corporate overpayment exceeding $10,000.
• 7% for underpayments (taxes owed but not fully paid).
• 9% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rates are equal to the federal short-term rate plus three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

These interest rates are computed from the federal short-term rate determined during April 2025.

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