Friday Footnotes: Discredit PwC and Risk Your Pension; Most IRS Functions Are Inactive | 10.10.25
Footnotes Footnotes offers a selection of narratives about the accounting field, curated by actual individuals, and is published every Friday at 5pm ET. Audit Missing State Library Inventory Data Valued at $215 MillionA recent audit from the Comptroller of Public Accounts revealed that over $215 million in assets belonging to the Connecticut State Library were […]
IRS unveils income tax brackets and standard deductions for 2026; here’s what’s different
IRS Announces New Tax Brackets and Deductions for 2026 The Internal Revenue Service (IRS) has released updated federal income tax brackets and standard deductions for the year 2026, which may offer some relief to taxpayers getting ready for next year’s filings. Typically, the IRS makes these adjustments in October or November to address “bracket creep.” […]
IRS retracts guidance on back pay for furloughed employees
The IRS recently pulled back on its earlier statement regarding back pay for employees affected by the government shutdown. In a Thursday announcement, the agency indicated that it would offer more detailed information soon, explaining the situation related to furloughed workers. The IRS noted that prior communications about furloughs didn’t accurately reflect the stipulations of […]
IRS reveals 2026 tax updates including increased standard deductions and tax brackets
The IRS revealed its annual adjustments for various tax provisions on Thursday, which also reflect changes made under the One Big Beautiful Bill Act (OBBBA). These adjustments will be effective for the tax year 2026. For that year, the standard deduction is set to rise to $16,100 for single filers and $32,200 for couples filing […]
IRS unveils 2026 tax brackets: Where do you fit in?
Millions of Americans might experience a financial uplift due to an inflation adjustment to the tax code recently revealed by the IRS. The changes, which relate to rising costs for food, rent, gas, and other things, will take effect starting with the 2026 tax year, meaning they’ll apply to returns submitted in 2027. For instance, […]
IRS announces income tax brackets and standard deductions for 2026
Impact of New Spending Law on Taxes The IRS adjusts income limits for federal tax brackets annually, considering inflation. This change could offer some financial relief for Americans when they file their taxes in the coming year. Typically, these adjustments happen around October or November, aiming to prevent what’s known as “bracket creep.” This issue […]
IRS Suspends Most Taxpayer Services as It Lays Off Almost Half of Its Staff
The IRS has outlined its operational plans amidst the ongoing government shutdown, indicating that about half of its workforce will be furloughed. This comes at a critical time as the agency gears up for the upcoming tax season, during which changes like the tip exemption will take effect. Government Shutdown Commencement The U.S. government shutdown […]
IRS sends 34,000 employees home as nationwide government shutdown persists
Senate Fails Again to End Government Shutdown As the government shutdown continues into its second week, a significant portion of the IRS workforce, around 34,000 employees, is facing furloughs. The agency is now implementing contingency plans to maintain essential operations, particularly around tax enforcement and data security, even without new funding from Congress. A letter […]
IRS to temporarily lay off almost half of its employees due to government shutdown
IRS to Furlough Nearly Half of Its Workforce Amid Ongoing Shutdown WASHINGTON — Nearly half of IRS employees are set to be furloughed on Wednesday due to the continuing government shutdown, as indicated by a revised contingency plan recently posted on the agency’s website. Most IRS operations will be suspended, according to a separate communication […]
Recent IRS furlough notifications promise back pay assurance despite OMB advice
The Internal Revenue Service (IRS) released guidelines on Wednesday indicating that furloughed employees are entitled to compensation under the 2019 legislation, even in light of opposition from the White House. The IRS noted, “While you are furloughed and therefore unpaid or not working, the Civil Service Fair Treatment Act mandates that federal employees who have […]