Bulletin No. 2026–32
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HIGHLIGHTS
OF THIS ISSUE
Bulletin No. 2026–32
August 3, 2026
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
EMPLOYEE PLANS
Announcement 2026-13, page 173.
Notice 2026-44, page 143.
The Office of Professional Responsibility (OPR) announces
recent disciplinary sanctions imposed on attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. The
OPR also announces when certain unenrolled, unlicensed
tax return preparers (individuals who are not enrolled to
practice before the Internal Revenue Service (IRS)) and are
not licensed as attorneys or certified public accountants)
have been disciplined. Licensed or enrolled practitioners
are subject to the regulations governing practice before the
IRS, which are set out in Title 31, Code of Federal Regulations (C.F.R.), Subtitle A, Part 10, and which are released
as Treasury Department Circular No. 230. The regulations
prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating
the regulations. Unenrolled/unlicensed return preparers
who choose to participate in the IRS’s voluntary Annual Filing Season Program (AFSP) are subject to the guidance in
Revenue Procedure 2014-42, which governs a preparer’s
eligibility to represent taxpayers before the IRS in examinations of tax returns the preparer both prepared for the taxpayer and signed as the preparer. Additionally, unenrolled/
unlicensed return preparers who participate in the AFSP
agree to be subject to the duties and restrictions in Circular
230, including the restrictions on incompetence or disreputable conduct.
Rev. Proc 2026-27, page 146.
This revenue procedure provides specifications for the private printing of red-ink substitutes for the 2026 Forms W-2
and W-3. This revenue procedure will be produced as the
next revision of Publication 1141. Rev. Proc. 2025-24 is
superseded.
Finding Lists begin on page ii.
This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for June
2026 used under § 417(e)(3)(D), the 24-month average segment rates applicable for July 2026, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)
(iv).
ESTATE TAX
T.D. 10050, page 134.
This document contains final regulations that amend the
Federal estate tax regulations applicable to estates of decedents passing property to or for the benefit of a noncitizen
spouse in a domestic trust that satisfies all of the requirements under applicable Federal tax law and regulations to be
a qualified domestic trust and for which the executor of the
decedent’s estate has made a qualified domestic trust election. These final regulations modify the existing regulations
to update outdated references, information, and procedures.
These final regulations primarily affect the estates of decedents passing property to or for the benefit of a noncitizen
spouse in a qualified domestic trust pursuant to applicable
Federal tax law.
INCOME TAX
Rev. Rul. 2026-13, page 132.
Federal rates; adjusted federal rates; adjusted federal longterm rate, and the long-term tax exempt rate. For purposes
of sections 382, 1274, 1288, 7872 and other sections of
the Code, tables set forth the rates for August 2026.
The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
August 3, 2026
Bulletin No. 2026–32
Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also, Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7702, 7872.)
Rev. Rul. 2026-13
This revenue ruling provides various
prescribed rates for federal income tax
AFR
110% AFR
120% AFR
130% AFR
AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR
AFR
110% AFR
120% AFR
130% AFR
Short-term adjusted AFR
Mid-term adjusted AFR
Long-term adjusted AFR
August 3, 2026
purposes for August 2026 (the current
month). Table 1 contains the shortterm, mid-term, and long-term applicable federal rates (AFR) for the current
month for purposes of section 1274(d)
of the Internal Revenue Code. Table 2
contains the short-term, mid-term, and
long-term adjusted applicable federal
rates (adjusted AFR) for the current
month for purposes of section 1288(b).
Table 3 sets forth the adjusted federal long-term rate and the long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropri-
ate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining the present
value of an annuity, an interest for life
or for a term of years, or a remainder or
a reversionary interest for purposes of
section 7520.
REV. RUL. 2026-13 TABLE 1
Applicable Federal Rates (AFR) for August 2026
Period for Compounding
Annual
Semiannual
Quarterly
Short-term
4.10%
4.06%
4.04%
4.52%
4.47%
4.45%
4.93%
4.87%
4.84%
5.35%
5.28%
5.25%
Mid-term
4.35%
4.30%
4.28%
4.79%
4.73%
4.70%
5.23%
5.16%
5.13%
5.67%
5.59%
5.55%
6.55%
6.45%
6.40%
7.67%
7.53%
7.46%
Long-term
4.92%
4.86%
4.83%
5.42%
5.35%
5.31%
5.91%
5.83%
5.79%
6.42%
6.32%
6.27%
Annual
3.10%
3.29%
3.72%
REV. RUL. 2026-13 TABLE 2
Adjusted AFR for August 2026
Period for Compounding
Semiannual
3.08%
3.26%
3.69%
132
Monthly
4.03%
4.43%
4.82%
5.22%
4.26%
4.68%
5.11%
5.53%
6.36%
7.41%
4.81%
5.29%
5.76%
6.24%
Quarterly
3.07%
3.25%
3.67%
Monthly
3.06%
3.24%
3.66%
Bulletin No. 2026–32
REV. RUL. 2026-13 TABLE 3
Rates Under Section 382 for August 2026
Adjusted federal long-term rate for the current month
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal
long-term rates for the current month and the prior two months.)
3.72%
3.77%
REV. RUL. 2026-13 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for August 2026
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit
8.08%
Appropriate percentage for the 30% present value low-income housing credit
3.46%
REV. RUL. 2026-13 TABLE 5
Rate Under Section 7520 for August 2026
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of August 2026. See Rev.
Rul. 2026-13, page 132.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of August 2026. See Rev. Rul.
2026-13, page 132.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
5.20%
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of August 2026. See Rev. Rul.
2026-13, page 132.
Section 7872.—Treatment
of Loans With BelowMarket Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
August 2026. See Rev. Rul. 2026-13, page 132.
Bulletin No. 2026–32
133
August 3, 2026
26 CFR 20.2056A-0, 26 CFR 20.2056A-2, 26
CFR 20.2056A-4, 26 CFR 20.2056A-11, 26
CFR 2056A-13
T.D. 10050
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 20
Revising Qualified Domestic
Trust Regulations under
Section 2056A to Update
Outdated References and
Procedures
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations that amend the Federal
estate tax regulations applicable to estates
of decedents passing property to or for the
benefit of a noncitizen spouse in a domestic trust that satisfies all of the requirements under applicable Federal tax law
and regulations to be a qualified domestic trust and for which the executor of the
decedent’s estate has made a qualified
domestic trust election. These final regulations modify the existing regulations to
update outdated references, information,
and procedures. These final regulations
primarily affect the estates of decedents
passing property to or for the benefit of a
noncitizen spouse in a qualified domestic
trust pursuant to applicable Federal tax
law.
DATES: Effective date: These regulations
are effective on July 10, 2026.
Applicability dates: For dates of applicability, see §§20.2056A-2(e), 20.2056A4(e), 20.2056A-11(e), and 20.2056A-13.
FOR FURTHER INFORMATION
CONTACT: Donna Douglas at 202-3176859 (not a toll-free number).
August 3, 2026
SUPPLEMENTARY INFORMATION:
Authority
This document contains amendments
to the Estate Tax Regulations (26 CFR
part 20) under section 2056A of the
Internal Revenue Code (Code) related to
qualified domestic trusts. These final regulations are issued under express delegations of authority provided under sections
2056A(a)(2), 2056A(e), and 7805(a) of
the Code. Section 2056A(a)(2) authorizes
the Secretary of the Treasury or the Secretary’s delegate (Secretary) to promulgate
regulations that will ensure the collection
of the estate tax imposed under section
2056A(b). Section 2056A(e) authorizes
the Secretary to prescribe such regulations
as may be necessary or appropriate to
carry out the purposes of section 2056A.
Section 7805(a) directs the Secretary to
prescribe all needful rules and regulations
for the enforcement of the Code, including
all rules and regulations as may be necessary by reason of any alteration of law in
relation to internal revenue.
Background
1. Statutory Overview
Section 2056(d)(1) of the Code generally disallows a marital deduction for the
value of property passing to a noncitizen
spouse of a decedent or donor. However,
section 2056(d)(2)(A) allows a marital
deduction for such property passing to the
decedent’s surviving spouse in a qualified
domestic trust (QDOT), as defined in section 2056A. Section 2056A of the Code
was added by the Technical and Miscellaneous Revenue Act of 1988 (Pub. L. 100647) and further amended by the Revenue Reconciliation Act of 1989 (Pub. L.
101-239), the Revenue Reconciliation Act
of 1990 (Pub. L. 101-508), the Taxpayer
Relief Act of 1997 (Pub. L. 105-34), and
the Economic Growth and Tax Relief Reconciliation Act of 2001 (Pub. L. 107-16).
Generally, for purposes of sections
2056 and 2056A, section 2056A(a) defines
the term “qualified domestic trust,” with
respect to any decedent, as any trust if (1)
its trust instrument meets certain requirements regarding the identity and powers
of the trustee, (2) such trust meets such
134
requirements as the Secretary may by regulations prescribe to ensure the collection
of any tax imposed by section 2056A(b),
and (3) an election under section 2056A
by the executor of the decedent applies
to such trust. Section 2056A(b) generally prescribes rules relating to a deferred
estate tax on distributions of corpus from
the QDOT during the spouse’s lifetime
and on the balance of the corpus held in
the QDOT at the spouse’s death (section
2056A estate tax). Section 2056A(c) provides definitions of certain relevant terms,
and section 2056A(d) provides rules
regarding the section 2056A election.
Finally, section 2056A(e) directs the Secretary to prescribe regulations as may be
necessary or appropriate to carry out the
purposes of section 2056A.
2. Existing Regulatory Guidance under
Section 2056A
Proposed regulations addressing the
application of sections 2056(d) and 2056A
were published in the Federal Register
(58 FR 305) on January 5, 1993 (1993
proposed regulations). The 1993 proposed regulations included proposed rules
under §§20.2056A-1 through 20.2056A13. Relevant to these final regulations,
§20.2056A-2 of the 1993 proposed regulations set forth the proposed qualification
requirements for a QDOT; §20.2056A-4
of the 1993 proposed regulations set forth
the proposed procedures for conforming
marital trusts and nontrust marital transfers to the requirements of a QDOT; and
§20.2056A-11 of the 1993 proposed regulations set forth the proposed rules relating to filing requirements and payment of
the section 2056A estate tax.
On August 22, 1995, after consideration of all written comments and public
hearing testimony, the 1993 proposed
regulations were adopted as final regulations by the publication of TD 8612 in the
Federal Register (60 FR 43531), with one
exception: §20.2056A-2(d) of the 1993
proposed regulations, which set forth proposed additional requirements to ensure
collection of the section 2056A estate
tax, was not finalized. On the same date,
the Department of the Treasury (Treasury Department) and the IRS published
TD 8613 in the Federal Register (60 FR
43554), which contained temporary reg-
Bulletin No. 2026–32
ulations under §20.2056A-2T(d) (1995
temporary regulations). The text of the
1995 temporary regulations also served,
by cross-reference, as the text of reissued
proposed regulations published on the
same date in the Federal Register (60 FR
43574) to address and solicit further commentary on the additional requirements
necessary to ensure collection of the
section 2056A estate tax (1995 proposed
regulations). On November 29, 1996, the
Treasury Department and the IRS published TD 8686 in the Federal Register
(61 FR 60551) to adopt §20.2056A-2(d) of
the 1995 proposed regulations, with modifications in response to comments, as final
regulations (1996 final regulations). In
an apparent oversight, the 1996 final regulations did not update the references to
§20.2056A-2T(d) found in §§20.2056A2, 20.2056A-4, and 20.2056A-11.
On August 21, 2024, the Treasury
Department and the IRS published in the
Federal Register (89 FR 67580) a notice
of proposed rulemaking (REG-11968322). The proposed regulations would
amend existing §§20.2056A-2, 20.2056A4, 20.2056A-11, and 20.2056A-13 to
update outdated references, information,
and procedures.
First, the proposed regulations would
update §§20.2056A-2, 20.2056A-4, and
20.2056A-11 of the Estate Tax Regulations to remove outdated references to
§20.2056A-2T(d). Second, the proposed
regulations would update §20.2056A-2
to correct outdated references to a publication, to IRS officials and offices, and
to procedures and addresses to be used
by certain trustees to provide a security
instrument to satisfy the requirements of
a QDOT. Third, the proposed regulations
would update §20.2056A-2(d)(1)(iii) to
amend the definition of “finally determined” because the definition of that term
in existing regulations includes an outdated reference to the issuance of an estate
tax closing letter. Fourth, the proposed
regulations would update §§20.2056A‑4
and 20.2056A-11 to properly identify the
titles of IRS officials authorized to enter
into agreements with respect to the section 2056A estate tax and to grant extensions of time to file a Form 706-QDT, U.S.
Estate Tax Return for Qualified Domestic
Trusts, or to pay any section 2056A estate
tax. Finally, the proposed regulations
Bulletin No. 2026–32
would update §20.2056A-13 to reflect
new applicability dates related to amendments that would be made by the proposed
regulations.
3. Public Hearing and Comments
Because no public hearing was
requested, the Treasury Department and
the IRS did not hold a public hearing on
the proposed regulations. The Treasury
Department and the IRS received two
written comments on the proposed regulations. The written comments are available
for public inspection at https://www.regulations.gov or upon request.
After consideration of the comments
and additional consideration of certain
aspects of the proposed regulations, the
Treasury Department and the IRS are
adopting the proposed regulations with
two revisions.
Summary of Comments and
Explanation of Revisions
One commenter opined that, by leaving
the substance of the regulations unaltered,
the Treasury Department and the IRS are
allowing for a more effective tax code
by focusing solely on the outdated terminology and leaving the function of the
Code unchanged. More specifically, the
commenter praised the existing regulations for establishing procedures by which
a non-citizen spouse may qualify for the
marital deduction (1) by establishing a
QDOT and transferring to it property that
otherwise would have passed directly to
the spouse, and (2) in the case of a plan,
annuity, or other arrangement which is
not assignable or transferable, by allowing the property to be treated as passing in
the form of a QDOT, notwithstanding that
the spouse does not irrevocably transfer or
assign the annuity or other payment to the
QDOT. Finally, the commenter suggested
increasing the basic exclusion amount
to relieve taxpayers with estates of less
value than that amount from the expense
of estate planning and from incurring
“excessive” Federal estate and gift taxes.
The basic exclusion amount applicable to
the Federal estate and gift taxes is determined by statute and therefore cannot be
changed by regulations. Accordingly, this
suggestion has not been adopted.
135
Another commenter noted that the
proposed regulations would clarify the
guidance for complying with the existing
section 2056A regulations, and that this
would save taxpayers time and money,
as well as raise taxpayer confidence in
the tax system by supporting equity and
taxpayer’s rights. The commenter continued, however, that the IRS has a mission that includes collecting the proper
amount of tax revenue, at the least cost
to the public, by efficiently applying the
tax law with integrity and fairness. The
commenter suggested that, to further
this end, before issuing the final regulations, the Treasury Department and the
IRS research the cost of QDOT compliance versus the amount of section
2056A estate tax revenue and consider
overhauling the entire QDOT system
and the ways QDOTs now can be structured to avoid or delay the imposition
of the section 2056A estate tax. Modification of the entire QDOT system would
first require a change in the terms of section 2056A itself, a change that can only
be achieved by legislation. Accordingly,
this suggestion has not been adopted.
After additional consideration of certain aspects of the proposed regulations
that would improve tax administration,
the Treasury Department and the IRS
adopt two non-substantive changes to
these regulations. First, identification
of the office known as the “Estate Tax
Advisory Group” throughout these regulations is clarified to include any successor office as provided in IRS publications,
forms or instructions, or on https://www.
irs.gov. In the event of a restructuring of
the IRS, this will allow the IRS to efficiently and quickly publicize the identity
of the successor office, improving clarity
for taxpayers. Second, the applicability
date is changed so that these regulations
will apply on and after the regulations are
published as final in the Federal Register, instead of applying only to estates of
decedents dying on or after the regulations
are published as final in the Federal Register. Because these regulations correct
outdated references and procedures, this
change will reduce confusion and ensure
all taxpayers are able to utilize the updated
references and procedures from the time
of publication of these regulations in the
Federal Register.
August 3, 2026
Special Analyses
I. Regulatory Planning and Review
These final regulations are not subject
to review under section 6(b) of Executive
Order 12866 pursuant to the Memorandum of Agreement (July 4, 2025) between
the Treasury Department and the Office
of Management and Budget regarding
review of tax regulations.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) requires
that a Federal agency obtain the approval
of the Office of Management and Budget (OMB) before collecting information
from the public, whether such collection
of information is mandatory, voluntary,
or required to obtain or retain a benefit. A
Federal agency may not conduct or sponsor, and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number.
The final regulations update the existing
regulations under section 2056A by modifying and replacing outdated references,
information, and procedures, such as references to IRS officials, offices, and addresses
that no longer exist and references to temporary regulations. The collections of
information within these final regulations
include reporting and third-party disclosure requirements imposed by the IRS to
ensure that the IRS has been provided with
adequate security for the collection of the
section 2056A estate tax, to allow marital
trusts and nontrust marital transfers to be
conformed to the requirements of a QDOT,
and to provide extensions of time for the
payment of section 2056A estate tax.
The final regulations include thirdparty disclosure and reporting requirements under §20.2056A-2(d)(1)(i) for
surety and banks to notify trustees and the
IRS of the failure to renew a bond or letter
of credit. These collection requirements
are already approved by OMB under
1545-1443 for all filers. The final regulations do not change the already approved
collection requirements, and only modify
the location of where to file. An update
to the filing location does not change the
already approved burden.
August 3, 2026
The final regulations include reporting
requirements related to a security instrument used to meet the qualifications of a
QDOT and filed at the time the executor of
an estate files a Form 706 or 706-NA. The
final regulations also include reporting
requirements related to Form 706-QDT
used to calculate and report the section
2056A estate tax due or to notify the IRS
that the trust is exempt from future filing
because a noncitizen spouse has become a
citizen. These reporting requirements are
already approved by OMB under 15451443 for all filers. The final regulations
do not substantively change the collection
requirements, and only modify the location of where to file the security instruments and arrangements. An update to the
filing location does not change the already
approved burden.
The final regulations include reporting requirements related to requesting
extensions using Form 4768 to file Form
706-QDT, Form 706, and Form 706-NA.
These reporting requirements are already
approved by OMB under 1545-0181 for
all filers. The final regulations do not substantively change the collection requirements, and only modify the location of
where to file the extension. An update to
the filing location does not change the
already approved burden.
Books and records relating to a collection of information must be retained
as long as their contents might become
material in the administration of any
internal revenue law. Generally, tax
returns and tax return information are
confidential, as required by section 6103
of the Code.
III. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby
certified that the final regulations will not
have a significant economic impact on a
substantial number of small entities. This
rule primarily affects individuals (or their
estates) and trusts, which are not small
entities for purposes of the Regulatory
Flexibility Act. Although it is anticipated
that there may be an incremental economic impact on executors that are small
entities, including entities that provide tax
and legal services that assist individuals in
preparing tax returns, any impact will not
136
be significant and will not affect a substantial number of small entities. Therefore, a
Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.
IV. Section 7805(f)
Pursuant to section 7805(f) of the Code,
this regulation has been submitted to the
Chief Counsel for the Office of Advocacy
of the Small Business Administration for
comment on its impact on small business.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result in
expenditures in any one year by a State,
local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for
inflation. This rule does not include any
Federal mandate that may result in expenditures by State, local, or Tribal governments, or by the private sector in excess of
that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local governments and is not required by statute,
or preempts State law unless the agency
meets the consultation and funding
requirements of section 6 of the executive
order. These final regulations do not have
federalism implications and do not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the executive order.
Drafting Information
The principal author of these final regulations is Donna Douglas of the Office of
Associate Chief Counsel (Passthroughs,
Trusts, and Estates). However, other personnel from the Treasury Department
Bulletin No. 2026–32
and the IRS participated in their development.
List of Subjects in 26 CFR Part 20
Estate taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS are amending 26 CFR part 20
as follows:
PART 20 – ESTATE TAX; ESTATES
OF DECEDENTS DYING AFTER
AUGUST 16, 1954
Paragraph 1. The authority citation
for part 20 continues to read in part as follows:
Authority: 26 U.S.C. 7805.
*****
Par. 2. Section 20.2056A-0 is amended
by:
1. Revising the entry for paragraph (d)
(6) of §20.2056A-2;
2. Adding an entry for paragraph (e) of
§20.2056A-2;
3. Adding an entry for paragraph (e) of
§20.2056A-4; and
4. Adding an entry for paragraph (e) of
§20.2056A-11.
The revision and additions read as follows:
§20.2056A-0 Table of contents.
*****
§20.2056A-2 Requirements for qualified
domestic trust.
*****
(d) * * *
(6) Special rules.
(e) Applicability date.
*****
§20.2056A-4 Procedures for conforming
marital trusts and nontrust marital
transfers to the requirements of a
qualified domestic trust.
*****
(e) Applicability date.
Bulletin No. 2026–32
*****
§20.2056A-11 Filing requirements and
payment of the section 2056A estate tax.
*****
(e) Applicability date.
*****
Par. 3. Section 20.2056A-2 is amended
by:
1. Revising the first sentence of paragraph (a);
2. Revising paragraph (b)(2);
3. Revising the first sentence of paragraph (b)(3);
4. Removing the fourth sentence of
paragraph (d)(1)(i)(B)(1) and adding in its
place two new sentences;
5. Revising and republishing paragraph
(d)(1)(i)(B)(2);
6. Revising the first sentence of paragraph (d)(1)(i)(B)(4), and adding a new
sentence at the end of the paragraph;
7. Removing the fourth sentence of
paragraph (d)(1)(i)(C)(1) and adding in its
place two new sentences;
8. Revising and republishing paragraph
(d)(1)(i)(C)(2);
9. Revising and republishing paragraph
(d)(1)(i)(C)(3);
10. Revising the first sentence of paragraph (d)(1)(i)(C)(5), and adding a new
sentence at the end of the paragraph;
11. Revising paragraph (d)(1)(iii);
12. Revising the paragraph heading of
paragraph (d)(6);
13. Removing paragraph (d)(6)(i);
14. Redesignating paragraphs (d)(6)(ii)
and (iii) as paragraphs (d)(6)(i) and (ii)
respectively; and
15. Adding paragraph (e).
The revisions and additions read as follows:
§20.2056A-2 Requirements for
qualified domestic trust.
(a) * * * To qualify as a qualified
domestic trust (QDOT), the requirements
of paragraphs (b) through (d) of this section must be satisfied. * * *
(b) * * *
(2) Property passing outright to spouse.
If property does not pass from a decedent
to a QDOT, but passes to a noncitizen
surviving spouse in a form that meets
the requirements for a marital deduction
137
without regard to section 2056(d)(1)(A),
and that is not described in paragraph (b)
(1) of this section, the surviving spouse
must either actually transfer the property,
or irrevocably assign the property, to a
trust (whether created by the decedent, by
the decedent’s executor, or by the surviving spouse) that meets the requirements
of paragraphs (c) and (d) of this section
(pertaining, respectively, to statutory
requirements and regulatory requirements
imposed to ensure collection of tax) prior
to the filing of the estate tax return for the
decedent’s estate and on or before the last
date prescribed by law that the QDOT
election may be made (see §20.2056A3(a)).
(3) * * * If property does not pass from
a decedent to a QDOT, but passes under
a plan or other arrangement that meets
the requirements for a marital deduction
without regard to section 2056(d)(1)(A)
and whose payments are not assignable
or transferable (see §20.2056A-4(c)), the
property is treated as meeting the requirements of this section, and the requirements
of §20.2056A-2(d), if the requirements of
§20.2056A-4(c) are satisfied. * * *
*****
(d) * * *
(1) * * *
(i) * * *
(B) * * *
(1) * * * Any notice of failure to renew
is required to be sent to the Estate Tax
Advisory Group of the Internal Revenue
Service or successor office as provided in
IRS publications, forms or instructions, or
on https://www.irs.gov. To determine the
correct address to use when submitting
the required documentation, see IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise provided in IRS forms or instructions or on
https://www.irs.gov. * * *
(2) Form of bond.—The bond must be
in the following form (or in a form that
is the same as the following form in all
material respects), or in such alternative
form as the Commissioner may prescribe
by guidance published in the Internal Revenue Bulletin (see §601.601(d)(2) of this
chapter):
Bond in Favor of the Internal Revenue
Service To Secure Payment of Section
2056A Estate Tax Imposed Under Section
2056A(b) of the Internal Revenue Code.
August 3, 2026
KNOW ALL PERSONS BY THESE
PRESENTS, That the undersigned,
_____, the SURETY, and ______, the
PRINCIPAL, are irrevocably held and
firmly bound to pay the Internal Revenue
Service upon written demand that amount
of any tax up to $ [amount determined
under paragraph (d)(1)(i)(B) of this section], imposed under section 2056A(b)
(1) of the Internal Revenue Code (including penalties and interest on said tax)
determined by the Internal Revenue Service to be payable with respect to the
principal as trustee for: [Identify trust
and governing instrument, name and
address of trustee], a qualified domestic trust as defined in section 2056A(a)
of the Internal Revenue Code, for the
payment of which the said Principal and
said Surety, bind themselves, their heirs,
executors, administrators, successors and
assigns, jointly and severally, firmly by
these presents.
WHEREAS, The Internal Revenue
Service may demand payment under
this bond at any time if the Internal
Revenue Service in its sole discretion
determines that a taxable event with
respect to the trust has occurred; the
trust no longer qualifies as a qualified
domestic trust as described in section
2056A(a) of the Internal Revenue Code
and the regulations promulgated thereunder, or a distribution subject to the
tax imposed under section 2056A(b)(1)
has been made. Demand by the Internal Revenue Service for payment may
be made whether or not the tax and tax
return (Form 706-QDT) with respect to
the taxable event is due at the time of
such demand, or an assessment has been
made by the Internal Revenue Service
with respect to the tax.
NOW THEREFORE, The condition
of this obligation is such that it must not
be cancelled and, if payment of all tax
liability finally determined to be imposed
under section 2056A(b) is made, then this
obligation is null and void; otherwise,
this obligation is to remain in full force
and effect for one year from its effective
date and is to be automatically renewable
on an annual basis unless, at least 60 days
prior to the expiration date, including
periods of automatic renewals, the surety
mails to the U.S. Trustee and the Internal
Revenue Service by Registered or Certi-
August 3, 2026
fied Mail, return receipt requested, notice
of the failure to renew. Receipt of this
notice of failure to renew by the Internal Revenue Service may be considered
a taxable event. The Internal Revenue
Service will not draw upon the bond if,
within 30 days of receipt of the notice of
failure to renew, the trustee notifies the
Internal Revenue Service that an alternate
security arrangement has been secured
and that the arrangement will take effect
immediately prior to or upon expiration
of the bond. The surety remains liable for
all taxable events occurring prior to the
date of expiration. All notices required
to be sent to the Internal Revenue Service under this instrument should be sent
to the Estate Tax Advisory Group of the
Internal Revenue Service or successor
office as provided in IRS publications,
forms or instructions, or on https://www.
irs.gov. To determine the correct address
to use when submitting the required documentation, see IRS Publication 4235,
Collection Advisory Offices Contact
Information, or as otherwise provided in
IRS forms or instructions or on https://
www.irs.gov.
This bond shall be effective as of ____
Principal _______________________
Date ___________________________
Surety _________________________
Date ___________________________
*****
(4) * * * The bond is to be filed (separately from the decedent’s Federal estate
tax return) by submitting it directly to
the Estate Tax Advisory Group of the
Internal Revenue Service or successor
office as provided in IRS publications,
forms or instructions, or on https://
www.irs.gov on or before the later of the
filing date or due date of the decedent’s
Federal estate tax return (Form 706 or
706-NA) unless an extension for filing
the bond is granted under §301.9100 of
this chapter. * * * To determine the correct address to use when submitting the
required documentation, see IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise
138
provided in IRS forms or instructions or
on https://www.irs.gov.
(C) * * *
(1) * * * Any notice of failure to renew
or closure of a U.S. branch of a foreign
bank required to be sent to the Internal
Revenue Service must be sent to the Estate
Tax Advisory Group of the Internal Revenue Service or successor office as provided
in IRS publications, forms or instructions,
or on https://www.irs.gov. To determine
the correct address to use when submitting
the required documentation, see IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise provided in IRS forms or instructions or on
https://www.irs.gov. * * *
(2) Form of letter of credit.--The letter
of credit must be made in the following
form (or in a form that is the same as the
following form in all material respects),
or an alternative form that the Commissioner prescribes by guidance published
in the Internal Revenue Bulletin (see
§601.601(d)(2) of this chapter):
[Issue Date]
To: Internal Revenue Service
Attention: Estate Tax Advisory Group
(or successor office as provided in IRS
publications, forms or instructions, or on
https://www.irs.gov). (See IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise provided in IRS forms or instructions or on
https://www.irs.gov, to determine the correct address to use when submitting the
required documentation).
[Or in the case of nonresident noncitizen
decedents and United States citizens who
die domiciled outside the United States,
To: Estate Tax Group,
Assistant Commissioner (International)
950 L’Enfant Plaza
CP:IN:D:C:EX:HQ:1114
Washington, DC 20024]
Dear Sirs:
We hereby establish our irrevocable
Letter of Credit No.--in your favor for
drawings up to U.S. $ [Applicant should
provide bank with amount which Applicant determined under paragraph (d)(1)
(i)(C)] effective immediately. This Letter
of Credit is issued, presentable and payable at our office at _______________
Bulletin No. 2026–32
and expires at 3:00 p.m. [EDT, EST,
CDT, CST, MDT, MST, PDT, PST] on
________ at said office.
For information and reference only,
we are informed that this Letter of
Credit relates to [Applicant should provide bank with the identity of qualified
domestic trust and governing instrument], and the name, address, and
identifying number of the trustee is
[Applicant should provide bank with the
trustee name, address and the QDOT’s
TIN number, if any].
Drawings on this Letter of Credit are
available upon presentation of the following documents:
1. Your draft drawn at sight on us bearing our Letter of Credit No. ______;
and
2. Your signed statement as follows:
The amount of the accompanying
draft is payable under [identify bank]
irrevocable Letter of Credit No.
_____ pursuant to section 2056A of
the Internal Revenue Code and the
regulations promulgated thereunder,
because the Internal Revenue Service
in its sole discretion has determined
that a “taxable event” with respect to
the trust has occurred; e.g., the trust
no longer qualifies as a qualified
domestic trust as described in section
2056A of the Internal Revenue Code
and regulations promulgated thereunder, or a distribution subject to the
tax imposed under section 2056A(b)
(1) of the Internal Revenue Code has
been made.
Except as expressly stated herein, this
undertaking is not subject to any agreement, requirement or qualification. The
obligation of [Name of Issuing Bank]
under this Letter of Credit is the individual
obligation of [Name of Issuing Bank] and
is in no way contingent upon reimbursement with respect thereto.
It is a condition of this Letter of
Credit that it is deemed to be automatically extended without amendment for
a period of one year from the expiration
date hereof, or any future expiration date,
unless at least 60 days prior to any expiration date, we mail to you and to the U.S.
Trustee notice by Registered Mail or Certified Mail, return receipt requested, or by
courier to your and the trustee’s address
indicated above, that we elect not to con-
Bulletin No. 2026–32
sider this Letter of Credit renewed for any
such additional period. Upon receipt of
this notice, you may draw hereunder on or
before the then current expiration date, by
presentation of your draft and statement as
stipulated above.
[In the case of a letter of credit issued
by a U.S. branch of a foreign bank the
following language must be added]. It is
a further condition of this Letter of Credit
that if the U.S. branch of [name of foreign
bank] is to be closed, that at least sixty
days prior to closing, we mail to you and
the U.S. Trustee notice by Registered Mail
or Certified Mail, return receipt requested,
or by courier to your and the U.S. Trustee’s address indicated above, that this
branch will be closing. This notice will
specify the actual date of closing. Upon
receipt of the notice, you may draw hereunder on or before the date of closure, by
presentation of your draft and statement as
stipulated above.
Except where otherwise stated herein,
this Letter of Credit is subject to the most
recent revision of the Uniform Customs
and Practice for Documentary Credits
published by the International Chamber of
Commerce (ICC), which can be found on
https://www.iccwbo.org. If we notify you
of our election not to consider this Letter
of Credit renewed and the expiration date
occurs during an interruption of business
described in the most recent revision of
that publication, unless you had consented
to cancellation prior to the expiration
date, the bank hereby specifically agrees
to effect payment if this Letter of Credit
is drawn against within 30 days after the
resumption of business.
Except as stated herein, this Letter
of Credit cannot be modified or revoked
without your consent.
Authorized Signature _____________
Date ___________________________
(3) Form of confirmation.-- If the
requirements of this paragraph (d)(1)(i)
(C) are satisfied by the issuance of a letter of credit by a foreign bank with confirmation by a bank as defined in section
581, the confirmation must be made in the
following form (or in a form that is the
same as the following form in all material respects), or an alternative form that
139
the Commissioner prescribes by guidance
published in the Internal Revenue Bulletin
(see §601.601(d)(2) of this chapter):
[Issue Date]
To: Internal Revenue Service
Attention: Estate Tax Advisory Group
(or successor office as provided in IRS
publications, forms or instructions, or on
https://www.irs.gov). (See IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise provided in IRS forms or instructions or on
https://www.irs.gov, to determine the correct address to use when submitting the
required documentation).
[or in the case of nonresident noncitizens
decedents and United States citizens who
die domiciled outside the United States,
To: Estate Tax Group,
Assistant Commissioner (International)
950 L’Enfant Plaza
CP:IN:D:C:EX:HQ:1114
Washington, DC 20024]
Dear Sirs:
We hereby confirm the enclosed irrevocable Letter of Credit No. _______, and
amendments thereto, if any, in your favor
by _______ [Issuing Bank] for drawings
up to U.S. $ [same amount as in initial
Letter of Credit] effective immediately.
This confirmation is issued, presentable
and payable at our office at _________
and expires at 3:00 p.m. [EDT, EST, CDT,
CST, MDT, MST, PDT, PST] on _____ at
said office.
For information and reference only,
we are informed that this Confirmation
relates to [Applicant should provide bank
with the identity of qualified domestic
trust and governing instrument], and the
name, address, and identifying number of
the trustee is [Applicant should provide
bank with the trustee name, address and
the QDOT’s TIN number, if any].
We hereby undertake to honor your
sight draft(s) drawn as specified in the
Letter of Credit.
Except as expressly stated herein, this
undertaking is not subject to any agreement, condition, or qualification. The
obligation of [Name of Confirming Bank]
under this Confirmation is the individual
obligation of [Name of Confirming Bank]
and is in no way contingent upon reimbursement with respect thereto.
August 3, 2026
It is a condition of this Confirmation
that it is deemed to be automatically
extended without amendment for a period
of one year from the expiration date
hereof, or any future expiry date, unless
at least sixty days prior to any expiration date, we send to you and to the U.S.
Trustee notice by Registered Mail or Certified Mail, return receipt requested, or by
courier to your and the trustee’s addresses,
respectively, indicated above, that we elect
not to consider this Confirmation renewed
for any additional period. Upon receipt of
this notice by you, you may draw hereunder on or before the then current expiration date, by presentation of your draft and
statement as stipulated above.
Except where otherwise stated herein,
this Confirmation is subject to the most
recent version of the Uniform Customs
and Practice for Documentary Credits
published by the International Chamber of
Commerce (ICC), which can be found on
https://www.iccwbo.org. If we notify you
of our election not to consider this Confirmation renewed and the expiration date
occurs during an interruption of business
described in the most recent version of
that publication, unless you had consented
to cancellation prior to the expiration
date, the bank hereby specifically agrees
to effect payment if this Confirmation is
drawn against within 30 days after the
resumption of business.
Except as stated herein, this Confirmation cannot be modified or revoked without your consent.
Authorized Signature _____________
Date ___________________________
*****
(5) * * * The letter of credit (and confirmation, if applicable) is to be filed separately from the decedent’s Federal estate
tax return (Form 706 or Form 706-NA)
by submitting it directly to the Estate Tax
Advisory Group of the Internal Revenue
Service or successor office as provided in
IRS publications, forms or instructions, or
on https://www.irs.gov, on or before the
later of the filing date or the due date of
the decedent’s Federal estate tax return
(unless an extension for filing the letter
of credit is granted under §301.9100 of
this chapter). * * * To determine the cor-
August 3, 2026
rect address to use when submitting the
required documentation, see IRS Publication 4235, Collection Advisory Offices
Contact Information, or as otherwise provided in IRS forms or instructions or on
https://www.irs.gov.
*****
(iii) Definition of finally determined―(A) In general. For purposes of
§20.2056A-2(d)(1)(i) and (ii), the fair
market value of assets is the fair market
value of those assets as finally determined
for Federal estate tax purposes. That value
is-(1) The value reported on an estate
tax return filed with the Internal Revenue
Service, once the period of limitations on
assessment (see section 6501) of estate
tax has expired without that value having
been timely adjusted by the Internal Revenue Service;
(2) The value determined or specified
by the Internal Revenue Service for unreported property, or for reported property
where the value determined or specified
by the Internal Revenue Service differs
from the value reported on an estate tax
return filed with the Internal Revenue
Service, once the period of limitations on
assessment applicable to the estate tax has
expired without that value having been
timely contested by the executor;
(3) The value determined in a written agreement with the Internal Revenue
Service (whether entered into during the
course of the administrative proceedings
between the estate and the Internal Revenue Service or after the commencement of
litigation) once that written agreement has
been executed by both the executor and
the Internal Revenue Service and is binding on all parties (including, but not limited to, the executor, the Internal Revenue
Service, and the beneficiaries); or
(4) The value determined by a court
for the purpose of determining the estate
tax liability of the estate, once the court’s
determination no longer can be appealed
to any court.
(B) Contested and Executor defined.
For purposes of this paragraph (d)(1)
(iii), the term contested means to put at
issue the value of property in a written
communication to the Internal Revenue
Service that identifies the specific property, states that the executor does not
accept as correct the value of that prop-
140
erty as determined or specified by the
Internal Revenue Service, and provides
the executor’s claimed value for that
property as determined in accordance
with the requirements of section 2031,
the corresponding regulations, and other
applicable guidance. An issue cannot be
contested by a general protective statement or written communication that
does not include each of these specified
elements. For purposes of this paragraph
(d)(1)(iii), the term executor includes
any person described in section 2203, as
expanded to include all persons required
under section 6018(b) to file an estate
tax return.
*****
(6) Special rules.
*****
(e) Applicability date. This section
applies on and after July 10, 2026.
Par. 4. Section 20.2056A-4 is amended
by:
1. Revising the second sentence of
paragraph (a)(1);
2. Revising the fifth and sixth sentences
of paragraph (a)(2);
3. Revising the sixth sentence of paragraph (c)(1);
4. Revising and republishing paragraph
(c)(6)(ii);
5. Revising and republishing paragraph
(c)(7)(ii); and
6. Revising paragraph (e).
The revisions read as follows:
§20.2056A-4 Procedures for
conforming marital trusts and nontrust
marital transfers to the requirements
of a qualified domestic trust.
(a) * * *
(1) * * * For this purpose, the requirements of a QDOT include all of the applicable requirements set forth in §20.2056A2. * * *
(2) * * * Thus, the trustee of the trust is
responsible for filing the Form 706-QDT,
paying any section 2056A estate tax that
becomes due, and filing the annual statement required under §20.2056A-2(d)
(3), if applicable. Failure to comply with
these requirements may cause the trust
to be subject to the anti-abuse rule under
§20.2056A-2(d)(1)(v). * * *
*****
(c) * * *
Bulletin No. 2026–32
(1) * * * In the case of a plan, annuity,
or other arrangement which is not assignable or transferable (or is treated as such),
the property passing under the plan from
the decedent is treated as meeting the
requirements of §20.2056A-2 (pertaining to the general requirements, qualified
marital interest requirements, statutory
requirements, and requirements to ensure
collection of the tax) if the requirements
of either paragraph (c)(2) or (3) of this
section are satisfied. * * *
*****
(6) * * *
(ii) Agreement.–-In order for a nonassignable annuity or other payment
described in this paragraph (c) to qualify
under paragraph (c)(2) of this section, the
executor of the decedent’s estate must file
with the estate tax return the following
Agreement To Pay Section 2056A Estate
Tax, which must be signed by the surviving spouse of the decedent (or by the surviving spouse’s legal representative if the
surviving spouse is legally incompetent to
sign the agreement):
I [name] hereby agree that I will report
all annuity payments received under the
[name of plan or arrangement] on Form
706-QDT for the calendar year and remit,
on an annual basis, to the Internal Revenue Service the estate tax that is imposed
under section 2056A(b)(1) of the Internal Revenue Code on the corpus portion
of each annuity payment (as defined in
§20.2056A-4(c)(4) of the Estate Tax Regulations) received under the plan during
the calendar year. I also agree that Form
706-QDT is to be filed no later than April
15th of the year following the calendar
year in which any annuity payments are
received except that: in the case of annuity payments received in the year of my
spouse’s death, Form 706-QDT and the
payment shall not be due prior to the due
date, including extensions, for filing my
spouse’s estate tax return or, if no return
is filed, no later than 9 months from the
date of my spouse’s death (except if I
am granted an extension of time to file
Form 706-QDT under the provisions of
§20.2056A-11); and in the year of my
death, the Form 706-QDT must be filed
and the payment made no later than the
date my estate tax return is filed (or if
no return is filed, no later than 9 months
from the date of my death). I further agree
Bulletin No. 2026–32
that if I fail to timely file Form 706-QDT
or to timely pay the tax imposed on the
corpus portion of any annuity payment
(determined after any extensions of time
to pay granted to me under the provisions of §20.2056A-11), I may become
immediately liable to pay the amount of
the tax determined by application of section 2056A(b)(1) on the entire remaining
present value of the annuity, calculated
as of the beginning of the year in which
the payment was received with respect
to which I failed to timely pay the tax or
failed to timely file the return. However, I
may make an application for relief under
§301.9100-1 of the Procedure and Administration Regulations, from the consequences of failing to timely file the Form
706-QDT or failing to timely pay the tax
on the corpus portion. [The following sentence is applicable only in cases where
the plan or arrangement is established and
administered by a person or an entity that
is located outside of the United States.]
I agree, at the request of the Chief Tax
Compliance Officer, IRS (or their delegate
or designee or as otherwise provided in
IRS publications, forms or instructions,
or on https://www.irs.gov), to enter into a
security agreement to secure my undertakings under this agreement.
(7) * * *
(ii) Agreement.–-In order for a nonassignable annuity or other payment
described in this paragraph (c) to qualify
under paragraph (c)(3) of this section, the
executor of the decedent’s estate must
file with the estate tax return the following Agreement To Roll Over Annuity
Payments, which must be signed by the
surviving spouse of the decedent (or by
the legal representative of the surviving
spouse if the surviving spouse is legally
incompetent to sign the agreement):
I [name] hereby agree that within 60
days of receipt of each annuity payment
paid under [name of plan or arrangement], I will transfer an amount equal to
percent (the corpus portion determined
under §20.2056A-4(c)(4) of the Estate
Tax Regulations) of each annuity payment to [identify the QDOT]. Further, I
will report all annuity payments received
during the calendar year under the [name
of plan or arrangement] on Form 706QDT including a schedule of transfers to
the [identify the QDOT]. I also agree that
141
Form 706-QDT is to be filed no later than
April 15th of the year following the year in
which any annuity payments are received
except that: in the case of annuity payments received in the year of my spouse’s
death, Form 706-QDT shall not be due
prior to the due date, including extensions, for filing my spouse’s estate tax
return, or, if no return is filed, no later than
9 months from the date of my spouse’s
death (except if I am granted an extension of time to file Form 706-QDT under
the provisions of §20.2056A-11); and in
the year of my death, the Form 706-QDT
must be filed no later than the date my
estate tax return is filed (or if no return is
filed, no later than 9 months from the date
of my death), and except if I am granted
an extension of time to file Form 706QDT under the provisions of §20.2056A11. I further agree that if I fail to timely
transfer any required amount with respect
to any annuity payment, or fail to timely
file Form 706-QDT reporting the transfers
for any year, I may become immediately
liable to pay the amount of the tax determined by application of section 2056A(b)
(1) on the entire remaining present value
of the annuity, calculated as of the beginning of the year in which the payment was
received with respect to which I failed to
make the timely transfer or timely file a
return. However, I may make an application for relief under §301.9100-1 of the
Procedure and Administration Regulations, from the consequences of failing
to timely file Form 706-QDT or failing
to timely transfer the corpus portion of
any annuity payment to the QDOT. [The
following sentence is applicable only in
cases where the plan or arrangement is
established and administered by a person
or an entity that is located outside of the
United States.] I agree, at the request of
the Chief Tax Compliance Officer, IRS (or
their delegate or designee or as otherwise
provided in IRS publications, forms or
instructions, or on https://www.irs.gov), to
enter into a security agreement to secure
my undertakings under this agreement.
*****
(e) Applicability date. This section
applies on and after July 10, 2026.
Par. 5. Section 20.2056A-11 is
amended by:
1. Revising the last sentence of paragraph (a);
August 3, 2026
2. Revising the last sentence of paragraph (c)(1);
3. Revising paragraph (c)(2); and
4. Adding paragraph (e).
The revisions and addition read as follows:
§20.2056A-11 Filing requirements and
payment of the section 2056A estate
tax.
(a) * * * See also §20.2056A-5(c)(1)
regarding the requirements for filing a
Form 706-QDT in the case of a distribution to the surviving spouse on account of
hardship, and §20.2056A-2(d)(3) regarding the requirements for filing Form 706QDT in the case of the required annual
statement.
*****
(c) * * *
(1) * * * Such extension may be
granted by the Advisory Group Managers (or their delegate or designee or as
August 3, 2026
otherwise provided in IRS publications,
forms or instructions, or on https://www.
irs.gov).
(2) Extension of time for paying tax
under section 6161(a)(1). An extension of
time beyond the due date to pay any part
of the estate tax imposed on lifetime distributions under section 2056A(b)(1)(A),
or imposed at the death of the surviving
spouse under section 2056A(b)(1)(B), or
imposed at the termination of the QDOT
(such as on the death or resignation of the
U.S. trustee), may be granted for a reasonable period of time, not to exceed 6 months
(12 months in the case of the estate tax
imposed under section 2056A(b)(1)(B)
at the surviving spouse’s death), by the
Advisory Group Managers (or their delegate or designee or as otherwise provided
in IRS publications, forms or instructions,
or on https://www.irs.gov).
*****
(e) Applicability date. This section
applies on and after July 10, 2026.
142
Par. 6. Section 20.2056A-13 is
amended by revising the section heading
and the first sentence to read as follows:
§20.2056A-13 Applicability dates.
Except as provided in this section
and in §§20.2056A-2(e), 20.2056A-4(e),
and 20.2056A-11(e), the provisions of
§§20.2056A-1 through 20.2056A-12 are
applicable with respect to estates of decedents
dying on or after August 22, 1995. * * *
Frank J. Bisignano,
Chief Executive Officer (IRS).
Approved: April 10, 2026.
Kenneth J. Kies,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register July 9,
2026, 8:45 a.m., and published in the issue of the
Federal Register for July 10, 2026, 91 FR 42659)
Bulletin No. 2026–32
Part III
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during specified periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates
are adjusted by the applicable percentage
of the 25-year average segment rates for
the period ending September 30 of the
year preceding the calendar year in which
the plan year begins.1 However, an election may be made under § 430(h)(2)(D)
(ii) to use the monthly yield curve in place
of the segment rates.
Section 1.430(h)(2)-1(d) provides
rules for determining the monthly corporate bond yield curve, and § 1.430(h)
(2)-1(c) provides rules for determining
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Consistent with the methodology specified in
§ 1.430(h)(2)-1(d), the monthly corporate
bond yield curve derived from June 2026
Notice 2026-44
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest rate on 30-year Treasury securities
under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to single-employer plans (except for CSEC plans
Applicable Month
July 2026
data is in Table 2026-6 at the end of this
notice. The spot first, second, and third
segment rates for the month of June 2026
are, respectively, 4.49, 5.43, and 6.18.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. Those percentages are
95% and 105% for plan years beginning
in 2025 and 2026. For this purpose, any
25-year average segment rate that is less
than 5% is deemed to be 5%. The 25-year
average segment rates for plan years
beginning in 2025 and 2026 were published in Notice 2024-67, 2024-41 I.R.B.
726 and Notice 2025-47, 2025-40 I.R.B.
441, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for July
2026 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
First Segment
Second Segment
Third Segment
4.37
5.27
5.93
The adjusted 24-month average segment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The
24-month averages applicable for July
2026, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average segment rates in accordance with § 430(h)(2)
(C)(iv), are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning In
Applicable Month
First Segment
Second Segment
Third Segment
2025
July 2026
4.75
5.27
5.93
2026
July 2026
4.75
5.25
5.93
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to multi-
employer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) pro-
vides that the interest rate used to calculate current liability for this purpose must
be no more than 5 percent above and no
more than 10 percent below the weighted
average of the rates of interest on 30-year
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
1
Bulletin No. 2026–32
143
August 3, 2026
Treasury securities during the four-year
period ending on the last day before the
beginning of the plan year. Notice 88-73,
1988-2 C.B. 383, provides guidelines for
determining the weighted average interest
rate. The rate of interest on 30-year Treasury securities for June 2026 is 4.95 percent. The Service determined this rate as
the average of the daily determinations of
yield on the 30-year Treasury bond matur-
ing in May 2056. For plan years beginning
in July 2026, the weighted average of the
rates of interest on 30-year Treasury securities and the permissible range of rates used
to calculate current liability are as follows:
For Plan Years Beginning In
Treasury Weighted Average Rates
30-Year Treasury Weighted Average
Permissible Range 90% to 105%
July 2026
4.56
4.10 to 4.78
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Section 1.417(e)-1(d)(3) provides guidelines for determining the min-
imum present value segment rates. Pursuant to that section, the minimum present
value segment rates determined for June
2026 are as follows:
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
Month
June 2026
Minimum Present Value Segment Rates
First Segment
Second Segment
4.49
5.43
DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of Associ-
August 3, 2026
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
144
Third Segment
6.18
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free calls).
Bulletin No. 2026–32
Table 2026-6
Monthly Yield Curve for June 2026
Derived from June 2026 Data
Maturity
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
19.5
20.0
Yield
4.05
4.22
4.36
4.47
4.54
4.58
4.62
4.65
4.68
4.72
4.76
4.81
4.87
4.93
4.98
5.04
5.10
5.16
5.21
5.27
5.32
5.37
5.41
5.45
5.49
5.53
5.56
5.59
5.62
5.65
5.67
5.70
5.72
5.74
5.76
5.78
5.80
5.81
5.83
5.85
Maturity
20.5
21.0
21.5
22.0
22.5
23.0
23.5
24.0
24.5
25.0
25.5
26.0
26.5
27.0
27.5
28.0
28.5
29.0
29.5
30.0
30.5
31.0
31.5
32.0
32.5
33.0
33.5
34.0
34.5
35.0
35.5
36.0
36.5
37.0
37.5
38.0
38.5
39.0
39.5
40.0
Bulletin No. 2026–32
Yield
5.86
5.88
5.90
5.91
5.93
5.94
5.96
5.97
5.99
6.00
6.02
6.03
6.04
6.05
6.07
6.08
6.09
6.10
6.10
6.11
6.12
6.13
6.13
6.14
6.14
6.15
6.16
6.16
6.17
6.17
6.18
6.18
6.19
6.19
6.20
6.20
6.20
6.21
6.21
6.22
Maturity
40.5
41.0
41.5
42.0
42.5
43.0
43.5
44.0
44.5
45.0
45.5
46.0
46.5
47.0
47.5
48.0
48.5
49.0
49.5
50.0
50.5
51.0
51.5
52.0
52.5
53.0
53.5
54.0
54.5
55.0
55.5
56.0
56.5
57.0
57.5
58.0
58.5
59.0
59.5
60.0
Yield
6.22
6.22
6.23
6.23
6.24
6.24
6.24
6.25
6.25
6.25
6.25
6.26
6.26
6.26
6.27
6.27
6.27
6.27
6.28
6.28
6.28
6.28
6.29
6.29
6.29
6.29
6.30
6.30
6.30
6.30
6.30
6.31
6.31
6.31
6.31
6.31
6.32
6.32
6.32
6.32
145
Maturity
60.5
61.0
61.5
62.0
62.5
63.0
63.5
64.0
64.5
65.0
65.5
66.0
66.5
67.0
67.5
68.0
68.5
69.0
69.5
70.0
70.5
71.0
71.5
72.0
72.5
73.0
73.5
74.0
74.5
75.0
75.5
76.0
76.5
77.0
77.5
78.0
78.5
79.0
79.5
80.0
Yield
6.32
6.32
6.33
6.33
6.33
6.33
6.33
6.33
6.34
6.34
6.34
6.34
6.34
6.34
6.34
6.35
6.35
6.35
6.35
6.35
6.35
6.35
6.36
6.36
6.36
6.36
6.36
6.36
6.36
6.36
6.36
6.37
6.37
6.37
6.37
6.37
6.37
6.37
6.37
6.37
Maturity
80.5
81.0
81.5
82.0
82.5
83.0
83.5
84.0
84.5
85.0
85.5
86.0
86.5
87.0
87.5
88.0
88.5
89.0
89.5
90.0
90.5
91.0
91.5
92.0
92.5
93.0
93.5
94.0
94.5
95.0
95.5
96.0
96.5
97.0
97.5
98.0
98.5
99.0
99.5
100.0
Yield
6.37
6.38
6.38
6.38
6.38
6.38
6.38
6.38
6.38
6.38
6.38
6.38
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.39
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.40
6.41
August 3, 2026
NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
26 CFR 601.602: Tax forms and instructions. (Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041-1, 1.6041-2, 31.6051-1, 31.6051-2, 31.6071(a)-1, 31.6081(a)1, 31.6091-1.)
Rev. Proc. 2026-27
TABLE OF CONTENTS
Part 1 – GENERAL
Section 1.1 – Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Section 1.2 – What’s New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Section 1.3 – Reminders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Section 1.4 – General Rules for Paper Forms W-2 and W-3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Section 1.5 – General Rules for Filing Forms W-2 (Copy A) Electronically. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
PART 2 – SPECIFICATIONS FOR SUBSTITUTE FORMS W-2 AND W-3
Section 2.1 – Specifications for Red-Ink Substitute Form W-2 (Copy A) and Form W-3 Filed With the SSA. . . . . . . . . . . . 153
Section 2.2 – Specifications for Substitute Black-and-White Form W-2 (Copy A) and Form W-3 Filed With the SSA. . . . . 156
Section 2.3 – Requirements for Substitute Forms Furnished to Employees (Copies B, C, and 2 of Form W-2). . . . . . . . . . . 158
Section 2.4 – Electronic Delivery of Forms W-2 and W-2c Recipient Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
PART 3 – ADDITIONAL INSTRUCTIONS
Section 3.1 – Additional Instructions for Form Printers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Section 3.2 – Instructions for Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Section 3.3 – OMB Requirements for Both Red-Ink and Black-and-White Substitute Forms W-2 and W-3 . . . . . . . . . . . . . 165
Section 3.4 – Order Forms and Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Section 3.5 – Effect on Other Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Section 3.6 – Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
August 3, 2026
146
Bulletin No. 2026–32
Part 1
General
Section 1.1 – Purpose
.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue
Service (IRS) and the Social Security Administration (SSA) regarding the preparation and use of
substitute forms for Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage
and Tax Statements, for wages paid during the 2026 calendar year.
.02 For purposes of this revenue procedure, substitute Form W-2 (Copy A) and substitute Form
W-3 are forms that are not printed by the IRS. Copy A or any other copies of a substitute Form
W-2 or a substitute Form W-3 must conform to the specifications in this revenue procedure to
be acceptable to the IRS and the SSA. No IRS office is authorized to allow deviations from this
revenue procedure. Preparers should also refer to the 2026 General Instructions for Forms W-2
and W-3 for details on how to complete these forms. See Section 3.4, later, for information on
obtaining the official IRS forms and instructions. See Sections 2.3 and 2.4, later, for requirements
for the copies of substitute forms furnished to employees and for electronic delivery of employee
copies.
.03 For purposes of this revenue procedure, the official IRS-printed red dropout ink Forms W-2
(Copy A) and Form W-3, and their exact substitutes, are referred to as “red-ink.” The SSAapproved black-and-white Forms W-2 (Copy A) and Form W-3 are referred to as “substitute
black-and-white Forms W-2 (Copy A)” and “substitute black-and-white Form W-3,” respectively.
Any questions about the red-ink Form W-2 (Copy A) and Form W-3 and the substitute employee
statements should be emailed to substituteforms@irs.gov. Enter “Substitute Forms” on the subject
line. Or send your questions to:
Internal Revenue Service
Attn: Substitute Forms Program
C:DC:TS:CAR:MP:P:TP:TP
ATSC
4800 Buford Highway
Mail Stop 061-N
Chamblee, GA 30341
Note: Do not send completed forms to the Substitute Forms Program via email or mail as they are
unable to process those forms. Any examples/samples of substitute forms sent to the Substitute
Forms Program should not contain taxpayer information.
Any questions about the black-and-white Form W-2 (Copy A) and Form W-3 should be emailed
to copy.a.forms@ssa.gov or sent to:
Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997
Bulletin No. 2026–32
147
August 3, 2026
Note: You should receive a response from either the IRS or the SSA within 30 days.
.04 Forms W-2 that include logos, slogans, and advertisements (including advertisements for
tax preparation software) may be considered as suspicious or altered Forms W-2 (also known
as questionable Forms W-2). Employees may not recognize the importance or legitimacy of the
employee copy for tax reporting purposes due to the use of logos, slogans, and advertisements.
Thus, the IRS has determined that logos, slogans, and advertising will not be allowed on Copy A of
Forms W-2, Forms W-3, or any employee copies reporting wages, with the following exceptions
for the employee copies.
•
Forms and envelopes may include the exact name of the employer or agent, primary trade
name, trademark, service mark, or symbol of the employer or agent.
•
Forms and envelopes may include an embossment or watermark on the information return
(and copies) that is a representation of the name, a primary trade name, trademark, service
mark, or symbol of the employer or agent.
•
Presentation may be in any typeface, font, stylized fashion, or print color normally used by
the employer or agent, and used in a nonintrusive manner.
•
These items must not materially interfere with the ability of the recipient to recognize,
understand, and use the tax information on the employee copies.
The IRS e-file logo on the IRS official employee copies may be included, but it is not required, on
any of the substitute form copies.
The information return and employee copies must clearly identify the employer’s name associated
with its employer identification number (EIN).
Logos and slogans may be used on permissible enclosures, such as a check or account statement,
but not on information returns and employee copies.
Forms W-2 and W-3 are subject to annual review and possible change. This revenue procedure
may be revised to state other requirements of the IRS and the SSA regarding the preparation and
use of substitute forms for Form W-2 and Form W-3 for wages paid during the 2026 calendar
year at a future date. If you have comments about the restrictions on including logos, slogans, and
advertising on information returns and employee copies, send or email your comments to Internal
Revenue Service, Attn: Substitute Forms Program, C:DC:TS:CAR:MP:P:TP:TP, ATSC, 4800
Buford Highway, Mail Stop 061-N, Chamblee, GA 30341, or substituteforms@irs.gov.
.05 The Internal Revenue Service/Technical Service Operation (IRS/TSO) maintains a centralized
customer service call site to answer questions related to information returns (Forms W-2, W-3,
W-2c, W-3c, 1099 series, 1096, etc.). Contact the TSO at 866-455-7438 (toll free) or 304-263-8700
(not a toll-free number). Deaf or hard-of-hearing customers may call any of our toll-free numbers
using their choice of relay service. Questions regarding the filing of information returns can be
emailed to irs.e-helpmail@irs.gov. When you send emails concerning specific file information,
include the company name and the electronic file name or Transmitter Control Code (TCC). Do
not include taxpayer identification numbers (TINs) or attachments in emails because email is not
secure.
File paper or electronic Forms W-2 (Copy A) with the SSA. The IRS/TSO does not process Forms
W-2 (Copy A). However, the IRS/TSO does process Form 8508, Application for a Waiver from
Electronic Filing of Information Returns, and Form 8809, Application for Extension of Time To
August 3, 2026
148
Bulletin No. 2026–32
File Information Returns, for Forms W-2 (Copy A) and Form 15397, Application for Extension
of Time to Furnish Recipient Statements. See Publication 1220, Specifications for Electronic
Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for information on waivers and
extensions of time. See Regulations section 301.6011-2 for information on when you are required
to file electronically and the exclusions from the electronic filing requirements.
.06 The following form instructions and publications provide more detailed filing procedures for
certain information returns.
•
General Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU,
W-2VI, W-3SS, W-2c, and W-3c) available online at https://www.irs.gov/FormW2.
•
Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c,
available online at https://www.irs.gov/Pub1223.
Section 1.2 – What’s New
.01 Wage reporting threshold increased. For wages paid after calendar year 2025, P.L. 119-21
increases the wage reporting threshold from $600 to $2,000 if no federal income, social security,
or Medicare tax was withheld. This threshold will be adjusted for inflation each calendar year
after 2026.
.02 Box 14 on the 2026 Forms W-2, W-2AS, W-2GU, W-2VI, and W-2c has been revised.
Box 14 has been split into box 14a and box 14b. Information that was reported in box 14—Other
will now be reported in box 14a—Other. Box 14b was created to report the Treasury Tipped
Occupation Code(s).
The Form W-2c was released in January 2026 and has a revision date (Rev. 1-2026) to the right
of the bold W-2c.
.03 Changes to boxes 9 and 14a on the 2026 Forms W-2, W-2AS, W-2GU, W-2VI, and W-2c.
Box 9 was reduced in size so an additional entry can be entered in box 14a. See Exhibits A and D
for the new measurements.
.04 New Form W-2, box 12 codes added per P.L. 119-21. See P.L. 119-21 and the 2026 General
Instructions for Forms W-2 and W-3 for more information.
•
Code TA – Used to report employer contributions to Trump accounts of an employee or
dependent of an employee that are paid pursuant to a section 128 Trump account contribution
program.
•
Code TP – Used to report the total amount of cash tips reported to the employer.
•
Code TT – Used to report the total amount of qualified overtime compensation.
.05 Exhibits. All of the exhibits in this publication were updated per the 2026 revisions of those
forms.
.06 Editorial changes. Editorial changes were made throughout, including updated references.
Redundancies were eliminated as much as possible.
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August 3, 2026
Section 1.3 – Reminders
.01 Electronic filing of returns. If you file 10 or more information returns, you must file them
electronically. See Regulations section 301.6011-2 for more information, including exclusions
from the electronic filing requirements.
.02 Forms W-2, W-2AS, W-2GU, W-2VI, W-3, W-3SS, W-2c, and W-3c have been updated
for a new OMB number. Starting with the 2025 revisions, the Forms W-2, W-2AS, W-2GU,
W-2VI, W-3, and W-3SS have been updated to show the new OMB number 1545-0029.
Starting with the June 2024 revisions, the Forms W-2c and W-3c have been updated to show the
new OMB number 1545-0029.
.03 IRS address change. Inquiries about the red-ink Form W-2 (Copy A) and Form W-3 should be sent
to the IRS at Internal Revenue Service, Attn: Substitute Forms Program, C:DC:TS:CAR:MP:P:TP:TP,
ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA 30341.
.04 New procedure to request an extension of time to furnish recipient copies of Form W-2.
Complete Form 15397, Application for Extension of Time to Furnish Recipient Statements, to
request an extension of time for furnishing Copies 2, B, and C to employees. See Form 15397 for
more information.
Section 1.4 – General Rules for Paper Forms W-2 and W-3
.01 Employers not filing electronically must file paper Forms W-2 (Copy A) along with Form
W-3 with the SSA by using either the official IRS form or a substitute form that exactly meets the
specifications shown in Parts 2 and 3 of this revenue procedure.
Note: Substitute territorial forms (W-2AS, W-2GU, W-2VI, W-3SS) must also conform to the
specifications as outlined in this revenue procedure. These forms require the form designation
(“W-2AS,” “W-2GU,” “W-2VI”) on Form W-2 (Copy A) to be in black ink. If you are an
employer in the Commonwealth of the Northern Mariana Islands, you must contact Department
of Finance, Division of Revenue and Taxation, Commonwealth of the Northern Mariana Islands,
P.O. Box 5234 CHRB, Saipan, MP 96950 or www.finance.gov.mp/forms.php to get Form W-2CM
and instructions for completing and filing the form. For information on Forms 499R-2/W-2PR, go
to www.hacienda.pr.gov.
Employers may design their own statements to furnish to employees. Employee statements
designed by employers must comply with the requirements shown in Parts 2 and 3.
.02 Red-ink substitute forms that completely conform to the specifications contained in this
revenue procedure may be privately printed without prior approval from the IRS or the SSA. Only
the substitute black-and-white Forms W-2 (Copy A) and Form W-3 need to be submitted to the
SSA for approval prior to their use (see Section 2.2).
.03 SSA-approved black-and-white Forms W-2 (Copy A) and Form W-3 may be generated using
a printer by following all guidelines and specifications (also see Section 2.2). In general, regardless
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of the method of entering data, use black ink on Forms W-2 (Copy A) and Form W-3, because
black ink is easier for scanning equipment to read. Colors other than black are not easily read by
the scanner and may result in delays or errors in the processing of Forms W-2 (Copy A) and Form
W-3. The printing of the data should be centered within the boxes. The size of the variable data
must be printed in a font no smaller than 10 points.
Note: With the exception of the identifying number, the year, the form number for Form W-3,
and the corner register marks, the preprinted form layout for the red-ink Forms W-2 (Copy A) and
Form W-3 must be in Flint J-6983 red OCR dropout ink or an exact match.
.04 Substitute forms filed with the SSA and substitute copies furnished to employees that do not
conform to these specifications are unacceptable. Penalties may be assessed for not complying
with the form specifications. Forms W-2 (Copy A) and Form W-3 filed with the SSA that do not
conform may be returned.
.05 Substitute red-ink forms should not be submitted to either the IRS or the SSA for specific
approval. If you have questions about any specification and want clarification, do the following.
•
Submit a letter or email to the appropriate address in Section 1.4.06 (listed next) citing the
specification.
•
State your understanding of the specification.
•
Include an example, if appropriate, of how the form would appear if produced using your
understanding. Do not use actual employee information in the example.
•
Be sure to include your name, complete address, and phone number with your correspondence.
If you want the IRS to contact you via email, also provide your email address.
.06 Any questions about the specifications, especially those for the red-ink Form W-2 (Copy A)
and Form W-3, should be emailed to substituteforms@irs.gov. Enter “Substitute Forms” on the
subject line. Or send your questions to:
Internal Revenue Service
Attn: Substitute Forms Program
C:DC:TS:CAR:MP:P:TP:TP
ATSC
4800 Buford Highway
Mail Stop 061-N
Chamblee, GA 30341
Note: Do not send completed forms to the Substitute Forms Program via email or mail as they
cannot process completed forms. Any examples/samples of substitute forms sent to the Substitute
Forms Program should not contain taxpayer information.
Any questions about the substitute black-and-white Form W-2 (Copy A) and Form W-3 should be
emailed to copy.a.forms@ssa.gov or sent to:
Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997
Bulletin No. 2026–32
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August 3, 2026
Note: You should receive a response within 30 days from either the IRS or the SSA.
.07 Forms W-2 and W-3 are subject to annual review and possible change. Therefore, employers
are cautioned against overstocking supplies of privately printed substitutes.
.08 Separate instructions for Forms W-2 and W-3 are provided in the 2026 General Instructions
for Forms W-2 and W-3. Form W-3 should be used only to transmit paper Forms W-2 (Copy A).
Form W-3 is a single sheet including only essential filing information. Be sure to make a copy of
your completed Form W-3 for your records. You can order current year official IRS Forms W-2,
W-2AS, W-2GU, W-2VI, W-3, and W-3SS, and the 2026 General Instructions for Forms W-2 and
W-3, online at https://www.irs.gov/OrderForms. The IRS provides only cut sheet sets of Forms
W-2 and cut sheets of Form W-3.
.09 Because substitute Forms W-2 (Copy A) and Form W-3 are machine imaged and scanned by
the SSA, the forms must meet the same specifications as the official IRS Forms W-2 and Form
W-3 (as shown in the exhibits).
Section 1.5 – General Rules for Filing Forms W-2 (Copy A) Electronically
.01 Employers must file Forms W-2 (Copy A) with the SSA electronically if they are required
to file 10 or more information returns unless the IRS grants a waiver or the employer claims an
exemption from the electronic filing requirement. See Regulations section 301.6011-2 for more
information. The SSA publication EFW2, Specifications for Filing Forms W-2 Electronically,
contains specifications and procedures for electronic filing of Form W-2 information with the SSA.
Use the most recent revision of EFW2 (and supplements) to ensure any changes to specifications
and procedures are incorporated.
.02 You may obtain a copy of the EFW2 by accessing the SSA website at www.ssa.gov/employer/
EFW2&EFW2C.htm.
.03 Electronic filers do not file a paper Form W-3. See the SSA publication EFW2 for guidance on
transmitting Form W-2 (Copy A) information to the SSA electronically.
.04 Employers are encouraged to electronically file Forms W-2 (Copy A) with the SSA even if
not required. Doing so will enhance the timeliness and accuracy of forms processing. You may
visit the SSA’s employer website at http://www.ssa.gov/employer. This helpful site has links to
Business Services Online (BSO) and tutorials on creating an account and using BSO to file your
Forms W-2.
.05 Employers who do not comply with the electronic filing requirements for Form W-2 (Copy
A) and who are not granted a waiver by or claim an exemption from the IRS may be subject
to penalties. Employers who file Form W-2 information with the SSA electronically must not
send the same data to the SSA on paper Forms W-2 (Copy A). Duplicate reporting may result in
unnecessary contacts by the SSA or the IRS.
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Part 2
Specifications for Substitute Forms W-2 and W-3
Section 2.1 – Specifications for Red-Ink Substitute Form W-2 (Copy A) and Form W-3 Filed With the SSA
.01 The official IRS-printed red dropout ink Form W-2 (Copy A) and Form W-3 and their exact
substitutes are referred to as “red-ink” in this revenue procedure. Employers may file substitute
Forms W-2 (Copy A) and Form W-3 with the SSA. The substitute forms must be exact replicas
of the official IRS forms with respect to layout and content because SSA scanners read the forms
electronically.
Note: Even the slightest deviation can result in incorrect scanning and may affect money amounts
reported for employees.
.02 Paper used for cut sheets and continuous-pinfed forms for substitute Forms W-2 (Copy A)
and Form W-3 that are to be filed with the SSA must be white 100% bleached chemical wood,
18–20 pound paper only, optical character recognition (OCR) bond produced in accordance with
the following specifications.
•
•
•
•
•
•
•
•
•
•
•
Acidity: Ph value, average, not less than . . . . . . . . . . . . . . . .
Basis weight: 17 x 22 inch 500 cut sheets, pound . . . . . . . . . . . .
Metric equivalent—gm./sq. meter
(a tolerance of +5 pct. is allowed) . . . . . . . . . . . . . . . . . . . .
Stiffness: Average, each direction, not less than—milligrams
Cross direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machine direction . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tearing strength: Average, each direction, not less
than—grams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Opacity: Average, not less than—percent . . . . . . . . . . . . . . . . .
Reflectivity: Average, not less than—percent . . . . . . . . . . . . . . .
Thickness: Average—inch . . . . . . . . . . . . . . . . . . . . . . . .
Metric equivalent—mm . . . . . . . . . . . . . . . . . . . . . . . . .
(a tolerance of +0.0005 inch (0.0127 mm) is allowed). Paper cannot
vary more than 0.0004 inch (0.0102 mm) from one edge to the other.
Porosity: Average, not less than—seconds . . . . . . . . . . . . . . . .
Finish (smoothness): Average, each side—seconds . . . . . . . . . . . .
(for information only) the Sheffield equivalent—units . . . . . . . . .
Dirt: Average, each side, not to exceed—parts per million . . . . . .
4.5
18–20
68–75
50
80
40
82
68
0.0038
0.097
10
20–55
170-d200
8
Note: Reclaimed fiber in any percentage is permitted, provided the requirements of this standard
are met.
Bulletin No. 2026–32
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August 3, 2026
.03 All printing of red-ink substitute Forms W-2 (Copy A) and Form W-3 must be in Flint red
OCR dropout ink except as specified below. Print the following items in nonreflective black ink:
•
Identifying number “22222” for Forms W-2 (Copy A) and “33333” for Form W-3 at the top
of the forms,
•
Tax year at the bottom of the forms,
•
The four (4) corner register marks on the forms,
•
The form identification number (“W-3”) at the bottom of Form W-3, and
•
All the instructions below Form W-3 beginning with “Send this entire page...” line to the
bottom of Form W-3.
.04 All boxes that display information or data for federal income tax reporting purposes must meet
the specified vertical and horizontal spacing requirements. On Form W-3 and Form W-2 (Copy
A), all the perimeter rules must be 1 point (0.014 inch), while all other rules must be one-half point
(0.007 inch). Vertical rules must be parallel to the left edge of the form; horizontal rules parallel
to the top edge.
.05 The official red-ink Form W-3 and Form W-2 (Copy A) are 7.50 inches wide. If you file paper
Forms W-2 (Copy A) with the SSA, you must also file Form W-3. Form W-3 must be the same
width (7.50 inches) as the Form W-2. One Form W-3 is printed on a standard size 8.5 x 11-inch
page. Two official Forms W-2 (Copy A) are contained on a single 8.5 x 11-inch page (exclusive
of any snap-stubs).
.06 The top, left, and right margins for the Form W-2 (Copy A) and Form W-3 are 0.50 inches
(1/2 inch). Do not print in the margins except for the words “DO NOT STAPLE” on red-ink Form
W-3. The space between the two Forms W-2 (Copy A) is 1.33 inches.
.07 The identifying numbers are “22222” for Form W-2 (Copy A (and 1)) and “33333” for Form
W-3. No printing should appear anywhere near the identifying numbers.
Note: The identifying number must be printed in nonreflective black ink in OCR-A font of 10
characters per inch.
.08 The depth of the individual scannable image on a page must be the same as that on the official
IRS forms. The depth from the top line to the bottom line of an individual Form W-2 (Copy A)
must be 4.17 inches and the depth from the top line to the bottom line of Form W-3 must be 4.67
inches.
.09 Continuous-pinfed Forms W-2 (Copy A) must be separated into 11-inch-deep pages. The
pinfed strips must be removed when Forms W-2 (Copy A) are filed with the SSA. The two Forms
W-2 (Copy A) on the 11-inch page must not be separated (only the pages are to be separated
(burst)). The words “Do Not Cut, Fold, or Staple Forms on This Page” must be printed twice
between the two Forms W-2 (Copy A) in Flint red OCR dropout ink. All other copies (Copies 1,
B, C, 2, and D) must be able to be distinguished and separated into individual forms.
.10 Box 12 of Form W-2 (Copy A) contains four entry boxes—12a, 12b, 12c, and 12d. Do not
make more than one entry per box. Enter your first code in box 12a (for example, enter code D in
box 12a, not 12d, if it is your first entry).
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If more than four items need to be reported in box 12, use a second Form W-2 to report the
additional items (see Multiple forms in the 2026 General Instructions for Forms W-2 and W-3).
Do not report the same federal tax information to the SSA on more than one Form W-2 (Copy
A). However, repeat the identifying information (employee’s name, address, and social security
number (SSN); employer’s name, address, and EIN) on each additional form.
.11 The checkboxes in box 13 of Form W-2 (Copy A) and in box b of Form W-3 must be 0.14
inches each. The space before the first checkbox is 0.24 inches; the spaces between the first and
second checkboxes and between the second and third checkboxes must be 0.36 inches; the space
between the third checkbox to the right border of box 13 should be 0.32 inches (see Exhibit A).
Note: Cover more than 50% of the applicable checkbox with an “X.”
.12 Box 9 must have a height of 0.17 inch to allow for additional entries in box 14a. Box 14b of
Form W-2 (Copy A) contains two entry spaces. Do not make more than one entry per entry space.
Each entry space must be 0.85 inches (see Exhibit A).
.13 All substitute Forms W-2 (Copy A) and Form W-3 in the red-ink format must have the tax
year, form number, and form title printed on the bottom face of each form using type identical
to that of the official IRS form. The red-ink substitute Form W-2 (Copy A) and Form W-3 must
have the form producer’s EIN entered directly to the left of “Department of the Treasury,” in red.
.14 The words “For Privacy Act and Paperwork Reduction Act Notice, see the separate
instructions.” must be printed in Flint red OCR dropout ink in the same location as on the official
Form W-2 (Copy A). The words “For Privacy Act and Paperwork Reduction Act Notice, see the
separate instructions.” must be printed at the bottom of the page of Form W-3 in black ink.
.15 The Office of Management and Budget (OMB) Number must be printed on substitute Forms
W-3 and W-2 (on each ply) in the same location as on the official IRS forms.
.16 All substitute Forms W-3 must include the instructions that are printed on the same sheet
below the official IRS form.
.17 The back of substitute Form W-2 (Copy A) and Form W-3 must be free of all printing.
.18 All copies must be clearly legible. Fading must be minimized to assure legibility.
.19 Chemical transfer paper is permitted for Form W-2 (Copy A) only if the following standards
are met.
•
Only chemically backed paper is acceptable for Form W-2 (Copy A). Front and back
chemically treated paper cannot be processed properly by scanning equipment.
•
Chemically transferred images must be black.
•
Carbon-coated forms are not permitted.
.20 The Government Printing Office (GPO) symbol, the Catalog Number (Cat. No.), and the
created date (located next to the revision date on the IRS-printed forms) must be deleted from
substitute Form W-2 (Copy A) and Form W-3.
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Section 2.2 – Specifications for Substitute Black-and-White Form W-2 (Copy A) and Form W-3 Filed With the SSA
.01 Specifications for the SSA-approved substitute black-and-white Forms W-2 (Copy A) and
Form W-3 are similar to the red-ink forms (Section 2.1) except for the items that follow (see
Exhibits D and E). Exhibits are samples only and may not show the required typeface and/or font.
Do not submit these exhibits to meet your tax filing requirements.
Note: Even the slightest deviation can result in incorrect scanning and may affect money amounts
reported for employees.
1.
Forms must be printed on 8.5 x 11-inch single-sheet paper only. There must be two Forms
W-2 (Copy A) printed on a page. There must be no horizontal perforations between the two
Forms W-2 (Copy A) on each page.
2.
All forms and data must be printed in nonreflective black ink only.
3.
Program the forms and data to print simultaneously. Forms cannot be produced separately
from wage data entries.
4.
The forms must not contain corner register marks.
5.
The forms must not contain any shaded areas, including those boxes that are entirely shaded
on the red-ink forms.
6.
The forms must not contain any bolded boxes, including the employee’s social security
number (box a) that is on the red-ink forms. The thickness of all lines should be consistent.
7.
Identifying numbers on both Form W-2 (Copy A) (“22222”) and Form W-3 (“33333”) must
be preprinted in 14-point Arial bold font or a close approximation.
8.
The form numbers (“W-2” and “W-3”) must be in 18-point Arial font or a close approximation.
The tax year (for example, “2026”) on Forms W-2 (Copy A) and Form W-3 must be in
20-point Arial bold font or a close approximation.
9.
No part of the box titles or the data printed on the forms may touch any of the vertical or
horizontal lines, and the printed data must not overlap with the box titles. The data should be
centered in the boxes.
10. Do not print any information in the margins of the substitute black-and-white Forms W-2
(Copy A) and Form W-3 (for example, do not print “DO NOT STAPLE” in the top margin of
Form W-3).
11. The word “Code” must not appear in box 12 on Form W-2 (Copy A).
12. A 4-digit vendor code preceded by four zeros and a slash (for example, 0000/9876) must
appear in 12-point Arial font, or a close approximation, under the tax year in place of the
Cat. No. on Form W-2 (Copy A) and in the bottom right corner of the “For Official Use
Only” box at the bottom of Form W-3. Do not display the form producer’s EIN to the left of
“Department of the Treasury.” The vendor code will be used to identify the form producer.
13. Do not print Catalog Numbers (Cat. No.) and the created date (located next to the revision
date on the IRS-printed form on either Form W-2 (Copy A) or Form W-3.
14. Do not print the checkboxes in box 13 of Form W-2 (Copy A). The “X” should be programmed
to be printed and centered directly below the applicable box title.
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15. Do not print dollar signs. If there are no money amounts being reported, the entire field should
be left blank.
16. The space between the two Forms W-2 (Copy A) is 1.33 inches.
.02 You must submit samples of your substitute black-and-white Forms W-2 (Copy A) and Form
W-3 to the SSA. Only black-and-white substitute Forms W-2 (Copy A) and Form W-3 for tax year
2026 will be accepted for approval by the SSA. Questions regarding other red-ink forms (that is,
red-ink Forms W-2c, W-3c, 1099 series, 1096, etc.) must be directed to the IRS only.
.03 The following guidelines outline the requirements for preparing and submitting both blank and
dummy-data substitute black-and-white Forms W-2 (Copy A) and Forms W-3:
•
Send one set of blank and one set of dummy-data substitute black-and-white Forms W-2
(Copy A) and Forms W-3 for approval.
•
Data entries on the dummy-data forms must:
1.
Fill the length of each box.
2.
Preferably use numeric data or alpha data, depending on the requirements.
•
The “VOID” checkbox must be electronically checked on the dummy-data substitute blackand-white Form W-2 (Copy A).
•
All “Xs” must be centered in box 13 under the applicable checkbox titles on the dummy-data
substitute black-and-white Form W-2 (Copy A).
•
All checkboxes on the dummy-data substitute black-and-white Form W-3 must be
electronically checked in box b (Kind of Payer, Kind of Employer, and Third-party sick pay).
•
Include the following contact information in your submission:
1.
Name
2.
Telephone number
3.
Fax number
4.
Email address
Note: The contact person should be able to answer questions regarding your sample forms.
.04 To receive approval, you may first contact the SSA via email at copy.a.forms@ssa.gov to
obtain a template and further instructions. You may submit your 2026 sample substitute blackand-white Forms W-2 (Copy A) and Forms W-3 in a PDF version electronically for approval to
the copy.a.forms@ssa.gov mailbox or send your paper 2026 sample substitute black-and-white
Forms W-2 (Copy A) and Forms W-3 to:
Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997
Bulletin No. 2026–32
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August 3, 2026
Send your sample forms by certified mail or a private delivery service so you can verify delivery. You
can expect approval (or disapproval) by the SSA within 30 days of receipt of your sample forms.
.05 Vendor codes from the National Association of Computerized Tax Processors (NACTP) are
required by companies that produce W-2 forms as part of a product for resale to be used by
multiple employers and payroll professionals. Employers developing Form W-2 or W-3 to be used
only for their individual company require a vendor code issued by the SSA.
.06 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must be preprinted on
the sample substitute black-and-white Forms W-2 (Copy A) and Forms W-3. Forms not containing
a vendor code will be rejected and will not be submitted for testing or approval. If you have a valid
vendor code provided to you through the NACTP, you should use that code. If you do not have a
valid vendor code, contact the SSA via email at copy.a.forms@ssa.gov to obtain an SSA-issued
code. (Additional information on vendor codes may be obtained from the SSA or the NACTP via
email at president@nactp.org.)
.07 If you use forms produced by a vendor and have questions concerning approval, do not
send the forms to the SSA for approval. Instead, you may contact the software vendor to obtain a
copy of the SSA’s dated approval notice supplied to that vendor.
.08 Based on user feedback, the SSA (and the IRS) have added a 2-D barcoded version for the
substitute Form W-2 and Form W-3 to the list of acceptable submission formats. This version
is an optional alternative to the nonbarcoded substitute Forms W-2 and W-3. Both versions are
fully supported by the SSA. The IRS and SSA do not currently require the use of 2-D barcoded
substitute forms.
Note: The data contained in the barcode must not differ from the data displayed on the form. If they
differ, the data in the barcode will be ignored and the data displayed on the form will be considered
the submission. This also occurs when the barcode is not read correctly. The information on the
form must be entered manually into the database.
To get barcode information:
•
Go to the SSA Business Services Online (BSO) website at www.ssa.gov/bso,
•
Request the PDF version of the specifications by emailing copy.a.forms@ssa.gov, and
•
Download the Substitute Forms W3/W2 2-D Barcoding Standards from www.ssa.gov/
employer/subBarCodeStd.pdf.
If you are using a form produced by another vendor that contains a 2-D barcode, you must submit
the form for approval using your own NACTP code. Before sending your first submission for
approval, contact the SSA via email at copy.a.forms@ssa.gov to register your NACTP code and
explain what forms you want to submit.
Section 2.3 – Requirements for Substitute Forms Furnished to Employees (Copies B, C, and 2 of Form W-2)
Note: Rules in Section 2.3 apply only to employee copies of Form W-2 (Copies B, C, and 2).
Printers are cautioned that the paper filers who send Forms W-2 (Copy A) to the SSA must follow
the requirements in Sections 2.1 and/or 2.2 above.
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.01 All employers (including those who file electronically) must furnish employees with at least
two copies of Form W-2 (three or more for employees required to file a state, city, or local income
tax return). Use the following guidelines for preparing employee copies.
The dimensions of these copies (Copies B, C, and 2), but not Copy A, may differ from the
dimensions of the official IRS form to provide room for additional information, including
additional entries such as withholding for health insurance, union dues, bonds, or charity in box
14a. The limitation of a maximum of four items in box 12 of Form W-2 applies only to Copy A,
which is filed with the SSA.
Note: Employee copies (Copies B, C, and 2 of Form W-2) may be furnished electronically if
employees consent (as described in Regulations section 31.6051-1(j)). See also Publication 15-A,
Employer’s Supplemental Tax Guide.
.02 The minimum dimensions for employee copies only (not Copy A) of Form W-2 should be
2.67 inches deep by 4.25 inches wide. The maximum dimensions are 6.50 inches deep by no more
than 8.50 inches wide.
Note: The maximum and minimum size specifications in this document are for tax year 2026 only
and may change in future years.
.03 Either horizontal or vertical format is permitted (see Exhibit F).
.04 The paper for all copies must be white and printed in black ink. The substitute Copy B, which
employees are instructed to attach to their federal income tax returns, should be at least 9-pound
paper (basis 17 x 22-500). Other copies furnished to employees should also be at least 9-pound
paper (basis 17 x 22-500) unless a state, city, or local government provides other specifications.
.05 Employee copies of Form W-2 (Copies B, C, and 2), including those that are printed on a single
sheet of paper, must be easily separated. The best method of separation is to provide perforations
between the individual copies. Regardless of the separation method, each copy should be easily
distinguished.
Note: Perforation does not apply to printouts of copies of Forms W-2 that are furnished
electronically to employees (as described in Regulations section 31.6051-1(j)). However, these
employees should be cautioned to carefully separate the copies of Form W-2. See Publication
15-A for information on electronically furnishing Forms W-2 to employees.
.06 Interleaved carbon and chemical transfer paper employee copies must be clearly legible.
Fading must be minimized to assure legibility.
.07 The electronic tax logo on the IRS official employee copies is not required on any of the
substitute form copies. To avoid confusion and questions by employees, employers are encouraged
to delete the identifying number (“22222”) from the employee copies of Form W-2.
.08 All substitute employee copies must contain boxes, box numbers, and box titles that match
the official IRS Form W-2. Boxes that do not apply can be deleted. However, certain core boxes
must be included. The placement, numbering, and size of this information is specified as follows.
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•
The core boxes must be printed in the exact order shown on the official IRS form. The items
and box numbers that constitute the core data are:
Box 1 — Wages, tips, other compensation
Box 2 — Federal income tax withheld
Box 3 — Social security wages
Box 4 — Social security tax withheld
Box 5 — Medicare wages and tips
Box 6 — Medicare tax withheld
•
The core data boxes (1 through 6) must be placed in the upper right of the form. Substitute
vertical-format copies may have the core data across the top of the form. Boxes or other
information will definitely not be permitted to the right of the core data.
•
The form title, number, or copy designation (B, C, or 2) may be at the top of the form.
Also, a reversed or blocked-out area to accommodate a postal permit number or other postal
considerations is allowed in the upper right.
•
Boxes 1 through 6 must each be a minimum of 1 and 1/8 inches wide x 1/4 inch deep.
•
Other required boxes are:
Box a — Employee’s social security number
Box b — Employer identification number (EIN)
Box c — Employer’s name, address, and ZIP code
Box e — Employee’s name
Box f — Employee’s address and ZIP code
Note: Employers may truncate the employee’s SSN on employee copies of Forms W-2. See the
2026 General Instructions for Forms W-2 and W-3 for more information.
Identifying items must be present on the form and be in boxes similar to those on the official
IRS form. However, they may be placed in any location other than the top or upper right. You
do not need to use the lettering system (a–c, e–f) used on the official IRS form. The employer
identification number (EIN) may be included with the employer’s name and address and not in a
separate box.
Note: Box d (“Control number”) is not required.
.09 All copies of Form W-2 furnished to employees must clearly show the form number, the
form title, and the tax year prominently displayed together in one area of the form. The title
of Form W-2 is “Wage and Tax Statement.” It is recommended (but not required) that this be
located on the bottom left of substitute Forms W-2. The reference to the “Department of the
Treasury — Internal Revenue Service” must be on all copies of substitute Forms W-2 furnished
to employees. It is recommended (but not required) that this be located on the bottom right of
Form W-2.
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.10 If the substitute employee copies are labeled, the forms must contain the applicable description.
•
“Copy B, To Be Filed With Employee’s FEDERAL Tax Return.”
•
“Copy C, For EMPLOYEE’S RECORDS.”
•
“Copy 2, To Be Filed With Employee’s State, City, or Local Income Tax Return.”
It is recommended (but not required) that these be located on the lower left of Form W-2. If
the substitute employee copies are not labeled as to the disposition of the copies, then written
notification using similar wording must be provided to each employee.
.11 The tax year (for example, “2026”) must be clearly printed on all copies of substitute Form
W-2. It is recommended (but not required) that this information be in the middle at the bottom of
the Form W-2. The use of 24-point OCR-A font is recommended (but not required).
.12 Boxes 1 and 2 (if applicable) on Copy B must be outlined in bold 2-point rule or highlighted in
some manner to distinguish them. If “Allocated tips” are being reported, it is recommended (but
not required) that box 8 also be outlined. If reported, “Social security tips” (box 7) must be shown
separately from “Social security wages” (box 3).
Note: Box 8 may be omitted if not applicable.
.13 If employers are required to withhold and report state or local income tax, the applicable
boxes are also considered core information and must be placed at the bottom of the form. State
information is included in:
•
Box 15 (State, Employer’s state ID number),
•
Box 16 (State wages, tips, etc.), and
•
Box 17 (State income tax).
Local information is included in:
•
Box 18 (Local wages, tips, etc.),
•
Box 19 (Local income tax), and
•
Box 20 (Locality name).
.14 Boxes 7 through 14b may be omitted from substitute employee copies unless the employer
must report any of that information to the employee. For example, if an employee did not have
“Social security tips” (box 7), the form could be printed without that box. But, if an employer
provided dependent care benefits, the amount must be reported separately, shown in box 10, and
labeled “Dependent care benefits.”
.15 Employers may enter more than four codes in box 12 of substitute Copies B, C, and 2 (and 1
and D) of Form W-2, but each entry must use codes A–II, TA, TP, or TT (see the 2026 General
Instructions for Forms W-2 and W-3).
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.16 If an employer has employees in any of the three categories in box 13, all checkbox headings
must be shown and the proper checkmark made, when applicable.
.17 Employers may use box 14a for any other information that they wish to give to their employees.
Each item must be labeled. (See the instructions for box 14a in the 2026 General Instructions for
Forms W-2 and W-3.)
.18 The front of Copy C of a substitute Form W-2 must contain the note “This information is being
furnished to the Internal Revenue Service. If you are required to file a tax return, a negligence
penalty or other sanction may be imposed on you if this income is taxable and you fail to report it.”
.19 Instructions similar to those contained on the back of Copies B, C, and 2 of the official IRS
Form W-2 must be provided to each employee. An employer may modify or delete instructions
that do not apply to its employees. (For example, remove Railroad Retirement Tier 1 and Tier
2 compensation information for nonrailroad employees or information about dependent care
benefits that the employer does not provide.)
.20 Employers must notify their employees who have no income tax withheld that they may be
able to claim a tax refund because of the earned income tax credit (EITC). They will meet this
notification requirement if they furnish a substitute Form W-2 with the EITC notice on the back
of Copy B; IRS Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC);
or on their own statement containing the same wording. They may also change the font on Copies
B, C, and 2 so that the EITC notification and Form W-2 instructions fit differently. For more
information about the EITC notification requirements, see section 10 in Publication 15 (Circular
E), Employer’s Tax Guide.
Note: An employer does not have to notify any employee who claimed exemption from withholding
on Form W-4, Employee’s Withholding Certificate, for the calendar year.
Section 2.4 – Electronic Delivery of Forms W-2 and W-2c Recipient Statements
.01 If you are required to furnish a Form W-2 or W-2c written statement (Copy B or an acceptable
substitute) to a recipient, you may furnish the statement electronically instead of on paper.
If you meet the requirements listed below, you are treated as furnishing the statement timely.
.02 The recipient must affirmatively consent and not have withdrawn the consent before the
statement is furnished. The consent by the recipient must be made electronically in a way that
demonstrates they can access the statement in the electronic format in which it will be furnished.
You must notify the recipient of any hardware or software changes prior to furnishing the statement.
A new consent to receive the statement electronically is required after any new hardware or
software is put into service.
To furnish Forms W-2 electronically, you must meet the following disclosure requirements,
as described in Regulations section 31.6051-1(j) and Publication 15-A and provide a clear and
conspicuous statement of each requirement to your employees before or at the time consent is
provided.
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•
The employee must be informed that they will receive a paper Form W-2 if the employee
does not consent to receive it electronically.
•
The employee must be informed of the scope and duration of the consent.
•
The employee must be informed of any procedure for obtaining a paper copy of their Form
W-2 and whether or not the request for a paper statement is treated as a withdrawal of the
employee’s consent to receiving their Form W-2 electronically.
•
The employee must be notified of the right to withdraw a consent, in writing (electronically
or on paper), and the employer must confirm the withdrawal in writing (electronically or on
paper), as well as the date the withdrawal takes effect.
•
The employee must also be notified that the withdrawn consent doesn’t apply to the previously
issued Forms W-2.
•
The employee must be informed about any conditions under which electronic Forms W-2 will
no longer be furnished (for example, termination of employment).
•
The employee must be informed of any procedures for updating their contact information that
enables the employer to provide electronic Forms W-2.
•
The employer must notify the employee of any changes to the employer’s contact information.
•
The employee must be provided with a description of the hardware and software used to
access the Form W-2 and the date when the Form W-2 will no longer be available on the
website.
•
The employee must be informed that they may be required to print the Form W-2 and attach
it to a federal, state, or local income tax return.
.03 Additionally, you must do the following.
•
Ensure the electronic format complies with the guidelines in this document and contains all
the required information described in the 2026 General Instructions for Forms W-2 and W-3.
•
If posting the statement on a website, post it for the recipient to access on or before the
January 31 due date through October 15 of that year.
•
Inform the recipient in person, electronically, or by mail of the posting and how to access and
print the statement.
Part 3
Additional Instructions
Section 3.1 – Additional Instructions for Form Printers
.01 If paper copies are used for filing with the SSA, assemble the substitute copies of Forms W-2
(either red-ink or substitute black-and-white forms) in the same order as the official IRS Forms
W-2. Copy A must be first, followed sequentially by perforated sets (Copies 1, B, C, 2, and D).
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.02 The substitute form to be filed by the employer with the SSA must carry the designation “Copy
A.”
Note: Electronic filers do not submit either red-ink or substitute black-and-white paper Form W-2
(Copy A) or Form W-3 to the SSA.
.03 Employers must retain a copy of Forms W-2 and W-3 (or be able to recreate the information)
for at least 4 years. Employers must also be able to generate Forms W-2 (Copy A) that meet the
requirements of this revenue procedure in case of loss.
.04 Except for copies in the official assembly, described in Section 3.1.01 above, no additional
copies that may be prepared by employers should be placed ahead of Form W-2 (Copy C) “For
EMPLOYEE’S RECORDS.”
.05 You must provide instructions similar to those contained on the back of Copies B, C, and 2
of the official IRS Form W-2 to each employee. You may print them on the back of the substitute
Copies B, C, and 2 or provide them to employees on a separate statement. You do not have to use
the back of Copy 2. If you do not use Copy 2, you may include all the information that appears
on the back of the official Copies B, C, and 2 on the back of your substitute Copies B and C only.
As an example, you may use the “Note” on the back of the official Copy C as the dividing point
between the text for your substitute Copies B and C. Do not print these instructions on the back
of Copy 1. Any Forms W-2 (Copy A) and Form W-3 that are filed with the SSA must have no
printing on the reverse side.
Section 3.2 – Instructions for Employers
.01 Only originals of Form W-2 (Copy A) and Form W-3 may be filed with the SSA. Carbon
copies and photocopies are unacceptable.
.02 Employers should type or machine-print data entries on plain paper forms whenever possible.
Ensure good quality by using a high-quality typeface, inserting data in the middle of blocks that
are well separated from other printing and guidelines, and taking any other measures that will
guarantee clear, sharp images. Black ink must be used with no script type, inverted font, italics,
or dual-case alpha characters.
Note: 12-point Courier font is preferred by the SSA.
.03 Form W-2 (Copy A) requires decimal entries for wage data. Do not print dollar signs with
money amounts on Forms W-2 (Copy A) and Form W-3.
.04 The employer must provide a machine-scannable Form W-2 (Copy A). The employer must
also provide employee copies (Copies B, C, and 2) that are legible and can be photocopied (by the
employee). Do not print any data in the top margin of the payee copies of the forms.
Note: Do not print Forms W-2 (Copy A) on double-sided paper.
.05 Any printing in box d (Control number) on Form W-2 or box a (Control number) on Form W-3
may not touch any vertical or horizontal lines and should be centered in the box.
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.06 The filer’s employer identification number (EIN) must be entered in box b of Form W-2 and
box e of Form W-3. The EIN entered on Form(s) W-2 (box b) and Form W-3 (box e) must be the
same as on Forms 941, 943, 944, and CT-1; Schedule H (Form 1040); or any other corresponding
forms filed with the IRS. Be sure to use EIN format (00-0000000) rather than SSN format (00000-0000). Do not truncate any EINs on Forms W-2 or W-3.
.07 The employer’s name, address, and EIN may be preprinted.
.08 Employers must not truncate the employee’s SSN on Copy A of Forms W-2 filed with SSA.
See the 2026 General Instructions for Forms W-2 and W-3 for more information.
.09 Do not cut, fold, or staple Copy A of Forms W-2 mailed to SSA.
.10 Do not make entries that are too small or too large. Use 12-point Courier font, if possible.
.11 Review your printed report before mailing to ensure that it is clear and that the data is entered
in the appropriate fields.
Section 3.3 – OMB Requirements for Both Red-Ink and Black-and-White Substitute Forms W-2 and W-3
.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires that:
•
The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to
the Paperwork Reduction Act;
•
Each IRS form contains (in or near the upper right corner) the OMB approval number, if
assigned — the official OMB numbers may be found on the official IRS printed forms and are
also shown on the forms in the Exhibits in Section 3.6; and
•
Each IRS form (or its instructions) states:
1.
Why the IRS needs the information,
2.
How it will be used, and
3.
Whether or not the information is required to be furnished to the IRS.
.02 This information must be provided to any users of official or substitute IRS forms or instructions.
.03 The OMB requirements for substitute IRS Form W-2 and Form W-3 are the following.
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•
Any substitute form or substitute statement to a recipient must show the OMB number as it
appears on the official IRS form.
•
The OMB number for both Form W-2 (Copy A) and Form W-3 is 1545-0029 and must appear
exactly as shown on the official IRS form.
•
For any copy of Form W-2 other than Copy A, the OMB number must use one of the following
formats.
1.
OMB No. 1545-0029 (preferred).
2.
OMB # 1545-0029 (acceptable).
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August 3, 2026
.04 Any substitute Form W-2 (Copy A only) and Form W-3 must state “For Privacy Act and
Paperwork Reduction Act Notice, see the separate instructions.” If no instructions are provided to
users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork
Reduction Act Notice in the 2026 General Instructions for Forms W-2 and W-3.
Section 3.4 – Order Forms and Instructions
.01 You can order IRS Forms W-2, Forms W-3, the General Instructions for Forms W-2 and W-3,
and other tax material online at https://www.irs.gov/OrderForms.
.02 Copies of Form W-2 (Copy A) and Form W-3 downloaded from IRS.gov cannot be used for
filing with the SSA. These copies of Forms W-2 and W-3 are for information purposes only.
Section 3.5 – Effect on Other Documents
.01 Revenue Procedure 2025–24, I.R.B. 2025-31, dated July 28, 2025 (reprinted as Publication
1141, Revised 07-2025), is superseded.
Section 3.6 – Exhibits
Exhibits A through F provide the general measurements for Forms W-2 and W-3, as discussed in
this revenue procedure. Exhibits are samples only and may not show the required typeface and/
or font. Exhibits must not be downloaded to meet tax obligations. Certain exhibits show a 0000/
in the location designated for your vendor code. See Section 2.2.01, item 12, and Section 2.2.05
for more information.
Exhibit A — Form W-2 (Copy A) (Red-Ink) 2026
Exhibit B — Form W-2 (Copy B) 2026
Exhibit C — Form W-3 (Red-Ink) 2026
Exhibit D — Form W-2 (Copy A) (Substitute Black-and-White) 2026
Exhibit E — Form W-3 (Substitute Black-and-White) 2026
Exhibit F — F
orm W-2 Alternative Employee Copies (Illustrating Horizontal and Vertical
Formats) 2026
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Part IV
Announcement of
Disciplinary Sanctions from
the Office of Professional
Responsibility
Announcement 2026-13
The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions imposed on attorneys,
certified public accountants, enrolled
agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. The
OPR also announces when certain unenrolled, unlicensed tax return preparers
(individuals who are not enrolled to practice before the Internal Revenue Service
(IRS)) and are not licensed as attorneys
or certified public accountants) have been
disciplined. Licensed or enrolled practitioners are subject to the regulations
governing practice before the IRS, which
are set out in Title 31, Code of Federal
Regulations (C.F.R.), Subtitle A, Part
10, and which are released as Treasury
Department Circular No. 230. The regulations prescribe the duties and restrictions
relating to such practice and prescribe
the disciplinary sanctions for violating
the regulations. Unenrolled/unlicensed
return preparers who choose to participate in the IRS’s voluntary Annual Filing
Season Program (AFSP) are subject to
the guidance in Revenue Procedure 201442, which governs a preparer’s eligibility
to represent taxpayers before the IRS in
examinations of tax returns the preparer
both prepared for the taxpayer and signed
as the preparer. Additionally, unenrolled/
unlicensed return preparers who participate in the AFSP agree to be subject to
the duties and restrictions in Circular 230,
including the restrictions on incompetence or disreputable conduct.
The disciplinary sanctions imposed for
violation of the applicable standards are:
Disbarred from practice before the
IRS—An individual who is disbarred
is not eligible to practice before the IRS
as defined at 31 C.F.R. (Circular 230)
§ 10.2(a)(4) for a minimum period of five
(5) years and until reinstated to practice.
Bulletin No. 2026–32
Suspended from practice before the
IRS—An individual who is suspended
is not eligible to practice before the IRS
as defined at 31 C.F.R. (Circular 230)
§ 10.2(a)(4) during the term of the suspension and until reinstated to practice.
Censured—Censure is a public reprimand. Unlike disbarment or suspension,
censure does not affect an individual’s eligibility to practice before the IRS, but the
OPR may subject the individual’s future
practice rights to conditions designed to
promote high standards of conduct.
Payment of monetary penalty—A
monetary penalty may be imposed on an
individual who engages in conduct subject to sanction, or on an employer, firm,
or other entity if the individual was acting
on its behalf and it knew, or reasonably
should have known, of the individual’s
conduct.
Disqualification of appraiser—An
appraiser who is disqualified is barred
from presenting evidence or testimony in
any administrative proceeding before the
Department of the Treasury or the IRS.
Additionally, any appraisal made by the
disqualified appraiser after the effective
date of disqualification will not have any
probative effect in any administrative proceeding before the Treasury Department
or the IRS.
Ineligible for limited practice—An
unenrolled/unlicensed tax return preparer
who participates in the AFSP and who fails
to comply with Circular 230 as required
by Revenue Procedure 2014-42 may have
their AFSP credential revoked and may be
determined ineligible to engage in future
limited practice under the program as a
representative of a taxpayer.
Under the regulations, individuals
subject to Circular 230 may not assist, or
accept assistance from, suspended or disbarred individuals with respect to matters
constituting practice (i.e., representation)
before the IRS, and they may not aid or
abet suspended or disbarred individuals to
practice before the IRS.
Disciplinary sanctions announced
below are described in these terms:
Disbarred by decision, Suspended by
decision, Censured by decision, Monetary penalty imposed by decision, and
173
Disqualified by decision (including after
a hearing)—An administrative law judge
(ALJ), upon the OPR’s complaint alleging violation of the regulations, issued a
decision imposing one of these sanctions
after the ALJ either (1) granted the OPR’s
motion for summary adjudication or (2)
after conducting an evidentiary hearing.
After 30 days from the issuance of the
decision, in the absence of an appeal, the
ALJ’s decision becomes the final agency
decision.
Disbarred by default decision, Suspended by default decision, Censured
by default decision, Monetary penalty imposed by default decision, and
Disqualified by default decision—An
ALJ, after finding that no answer to the
OPR’s complaint was filed or timely filed,
granted the OPR’s motion for a default
judgment and issued a decision imposing
one of these sanctions.
Disbarred by decision on appeal,
Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on
appeal, and Disqualified by decision
on appeal—The decision of the ALJ was
appealed to the agency’s appellate authority, acting as the delegate of the Secretary
of the Treasury, and the appellate authority issued a decision imposing one of these
sanctions.
Disbarred by consent, Suspended
by consent, Censured by consent,
Monetary penalty imposed by consent,
and Disqualified by consent—In lieu of
a disciplinary proceeding being instituted
or continued, an individual offered their
consent to one of these sanctions (or a
firm or other entity offered to consent to a
monetary penalty) and the OPR accepted
the offer and the parties entered into a
consent agreement. Typically, an offer
of consent will provide for: suspension
for an indefinite term; conditions that
the individual must observe during the
suspension; and the individual’s opportunity, after a stated number of months,
to file with the OPR a petition for reinstatement affirming compliance with
the terms of the consent agreement and
affirming current fitness and eligibility
to practice (i.e., an active professional
August 3, 2026
license or active enrollment status, with
no intervening violations of the regulations).
Suspended indefinitely by decision
in expedited proceeding, Suspended
indefinitely by default decision in expedited proceeding—The OPR instituted
an expedited proceeding for suspension
(based on certain limited grounds, including loss of a professional license for cause,
and criminal convictions) that resulted in
suspension.
Determined ineligible for limited
practice—There has been a final determination under Revenue Procedure 2014-42
that an unenrolled/unlicensed tax return
preparer is not eligible for continued limited representation of taxpayers because
the preparer violated standards of conduct prescribed in Circular 230 or failed
to comply with any of the requirements
described in the revenue procedure.
A practitioner who has been disbarred
or suspended under 31 C.F.R. Part 10’s
(Circular 230’s) § 10.60, (“Initiation of
proceeding” (before an ALJ)) or suspended under § 10.82 (“Expedited suspension”), or a disqualified appraiser may
petition for reinstatement before the IRS
after the expiration of 5 years following
such disbarment, suspension, or disqualification (or immediately following the
expiration of the suspension or disqualification period if shorter than 5 years).
Reinstatement will not be granted unless
the IRS is satisfied that the petitioner is
not likely to engage thereafter in conduct
contrary to Circular 230, and that granting
such reinstatement would not be contrary
to the public interest.
Reinstatement decisions are published
at the individual’s request, and described
in these terms:
Reinstated to practice before the
IRS—The OPR granted the individual’s
petition for reinstatement. The individual
is eligible to practice before the IRS, or in
the case of an appraiser, the individual is
no longer disqualified.
Reinstated to engage in limited practice before the IRS—The OPR granted
the individual’s petition for reinstatement.
The individual is eligible to engage in limited practice before the IRS as an unenrolled/unlicensed return preparer through
participation in the AFSP.
The OPR has authority to disclose
the grounds for disciplinary sanctions in
these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a
final decision imposing a sanction; (2) the
individual has settled a disciplinary case
by signing the OPR’s consent-to-sanction
agreement admitting to one or more violations of the regulations and consenting
to the disclosure of the admitted violations
(for example, willful failure to file Federal
income tax returns, lack of due diligence,
conflict of interest, etc.); (3) the OPR has
issued a decision in an expedited proceeding for indefinite suspension; or (4) upon
a final determination (including any decision on appeal) that an unenrolled/unlicensed return preparer is no longer eligible to represent taxpayers before the IRS
as an AFSP participant under Revenue
Procedure .
Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The
sanctions announced below are alphabetized first by state and second by the last
names of the sanctioned individuals (or
firms).
City & State
Name
Professional
Designation
Disciplinary Sanction
Effective Date(s)
Indiana
Fishers
Crace, Jason L.
CPA
Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)
Indefinite from
May 15, 2026
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Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior published position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confusion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously published ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the substance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rulings in the series.
Suspended is used in rare situations
to show that the previous published rulings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
Bulletin No. 2026–32
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
i
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
August 3, 2026
Numerical Finding List1
Bulletin 2026–32
Announcements:
2026-11, 2026-29 I.R.B. 49
2026-12, 2026-29 I.R.B. 50
2026-13, 2026-32 I.R.B. 173
Notices:
2026-39, 2026-27 I.R.B. 1
2026-38, 2026-28 I.R.B. 30
2026-40, 2026-28 I.R.B. 33
2026-41, 2026-29 I.R.B. 39
2026-42, 2026-29 I.R.B. 41
2026-43, 2026-29 I.R.B. 42
2026-21, 2026-30 I.R.B. 51
2026-44, 2026-32 I.R.B. 143
Revenue Procedures:
2026-25, 2026-29 I.R.B. 45
2026-18, 2026-30 I.R.B. 53
2026-26, 2026-31 I.R.B. 131
2026-32, 2026-32 I.R.B. 146
Revenue Rulings:
2026-12, 2026-28 I.R.B. 27
2026-13, 2026-32 I.R.B. 132
Treasury Decisions:
10051, 2026-31 I.R.B. 118
10052, 2026-31 I.R.B. 121
10050, 2026-32 I.R.B. 134
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2026–27 through 2026–52 is in Internal Revenue Bulletin
2025–52, dated December 21, 2025.
1
August 3, 2026
ii
Bulletin No. 2026–32
Finding List of Current Actions on
Previously Published Items1
Bulletin 2026–32
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2026–27 through 2026–52 is in Internal Revenue Bulletin
2025–52, dated December 21, 2025.
1
Bulletin No. 2026–32
iii
August 3, 2026
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
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