August 24, 2026: official IRS and California tax updates worth skimming
Here is the practical version: tax headlines are useful, but letters and deadlines are what usually hurt people. If you have an IRS or California FTB notice, start with the agency, notice code, tax year, and deadline before you chase every new tax headline.
1. IRS items pulled this week
These are the latest items the updater found from official IRS newsroom and tax-tip pages. Treat them as starting points, not advice for your exact situation.
IRS reminder: Information return e-file system transitioning to a new platform
Official update from IRS. Open the source before making decisions.
Treasury, IRS issue proposed regulations on eligible investments for Trump Accounts under the Working Families Tax Cuts
Official update from IRS. Open the source before making decisions.
IRS updates FAQs about the limitation on the deduction for business interest expense
Official update from IRS. Open the source before making decisions.
Treasury, IRS proposes rules to protect refundable tax credits from abuse by illegal aliens
Official update from IRS. Open the source before making decisions.
Treasury, IRS issue guidance on rollovers between retirement plans and individual retirement accounts
Official update from IRS. Open the source before making decisions.
Plain-English take: planning updates can matter, but a notice deadline matters first. If a letter has your name, tax year, and response date on it, handle that timeline before anything else.
2. California FTB items pulled this week
These are the latest items the updater found from official California Franchise Tax Board tax-news pages.
FTB issued Legal Ruling 2026-02 August 21, 2026
FTB issued Legal Ruling 2026-02 , which clarifies when involuntary payments constitute an overcollection. The Legal Ruling applies to taxpayers in situations where amounts are overcollected as a result of a clerical or mechanical error and the statute of limitations for filing a claim for refund has expired.
Los Angeles County Disaster Relief Reminder July 30, 2026
Individuals and businesses with their principal residence, or principal place of business, in Los Angeles County during the fires that began January 7, 2025, qualified for a postponement to file and pay taxes until October 15, 2025.
FTB is issuing Legal Ruling 2026-01 July 7, 2026
FTB is issuing Legal Ruling 2026-01, which provides clarity to situations involving contingent beneficiaries of discretionary trusts under Revenue and Taxation Code (R&TC) section 17742.
MyFTB tax professional client notices page June 16, 2026
FTB sends email notification to Power of Attorney (POA) representatives when their client has a new notice or other document available. Some tax professionals with a POA and MyFTB access may be unable to view the Client Notices page. Currently, tax professionals impacted by this issue will need to view the notice directly in their client's respective account.
Pass-Through Entity (PTE) Elective Tax June 15th payment approaching May 27, 2026
As a reminder, qualified entities are required to make a PTE elective tax payment on or before June 15, 2026. The payment amount is the greater of 50% of the elective tax paid the previous year or $1,000. For taxable years beginning on or after January 1, 2026, if the qualified entity makes a valid election without the required June 15 payment, qualified taxpayers (i.e. partners, members, or shareholders) may receive a reduced PTE elective tax credit.
Plain-English take: California notices and account messages are their own lane. Do not assume an IRS update fixes an FTB letter, or the other way around.
Tax Allstars boundary: this page is general education. Tax Allstars is operated by Brokentoy LLC and coordinates intake, workflow, and routing to qualified independent tax professionals. Non-credentialed Tax Allstars staff do not provide tax advice, prepare returns, or represent clients before the IRS or state agencies.
If you only do one thing this week
If you received an IRS or FTB notice, do not start by Googling every scary phrase. Start with the basics: agency, notice code, tax year, response deadline, and whether all returns are filed. Then get the facts reviewed before the deadline passes.