December watch: IRS spotlights tax security; automatic penalty relief on deck

by | Dec 3, 2025 | Tax Tips and News

It’s holiday shopping season. It’s also the warm-up for tax season. Two quick updates to know this December.

Security push this week

The IRS and state tax agencies are using early December to promote National Tax Security Awareness Week. The message is simple: thieves want your tax refund and your identity. Don’t make it easy.

  • Be suspicious of emails and texts claiming to be from the IRS. The IRS doesn’t start contact by email, text, or social media DMs about a bill or refund.
  • Turn on two-factor authentication for tax software and financial accounts.
  • Use strong, unique passwords. Consider a password manager.
  • Avoid public Wi‑Fi for anything sensitive. Hotspot or wait until you’re on a secure network.
  • Update your phone, computer, and apps to patch security holes.
  • Watch for “smishing” and “vishing.” Don’t click unknown links, and don’t read off codes to callers.

Bonus: If you choose to use an Identity Protection PIN, store it somewhere safe. You’ll need it to e-file.

Automatic first-time penalty relief coming in 2026

The IRS says it plans to start applying First-Time Abate Relief automatically next year for about 1 million taxpayers. That means certain late-filing or late-payment penalties may be removed without you having to ask, if you have a clean recent history.

What to expect: If a qualifying penalty posts, the system should reverse it. Keep any IRS notices you receive, and watch your account for updates.

For small businesses

  • Security tips apply to payroll and bookkeeping systems, too. Protect access to payroll portals and cloud accounting tools.
  • January brings tight filing windows for W‑2s and 1099s. Start gathering info now to avoid last‑minute scrambles.

This article is for general information only and is not legal, financial, or tax advice.

– Article provided by Tax News.