Tax Brief Issue 7: Info Returns, Retirement Plans, Late Elections, & Partnership Updates

01. Info Return E-Filing System & Threshold Changes

• New Information Returns (IR) Applications for Transmitter Control Codes (TCCs) for the FIRE System will no longer be accepted starting July 21, 2026, as all current FIRE users must transition to the IRIS system for electronic filing by January 1, 2027, which will be the sole system for information returns.
• The electronic filing threshold for information returns is reduced to 10 or more returns per calendar year, applicable for tax year 2023 returns filed in 2024 and onwards, per Treasury Decision 9972.

Source: IRS Tax Forms and Instructions · 2026-06-01

02. Retirement Plan Long-Term Care Distribution Deadlines

• The deadline to adopt plan amendments permitting qualified long-term care distributions is December 31, 2027 for non-governmental, non-collectively-bargained defined contribution plans; December 31, 2028 for applicable collectively bargained plans; and December 31, 2029 for governmental plans.
• For 2026, the maximum aggregate qualified long-term care distribution from a defined contribution plan is the least of the premiums paid for certified long-term care insurance, 10% of the present value of the vested accrued benefit, or $2,600 (as adjusted for inflation).

Source: IRS Internal Revenue Bulletin · 2026-06-08

03. Late S Corp & Entity Election Relief

• The IRS consistently grants relief for late S corporation elections under IRC Section 1362(b)(5) and late entity classification elections (Form 8832) under Regulation Section 301.9100-3, provided the taxpayer acted reasonably and in good faith, and the government's interests are not prejudiced.
• When relief for a late S corporation election or entity classification election is granted via a Private Letter Ruling, the taxpayer typically has 120 days from the date of the ruling letter to file the necessary forms (Form 2553 and/or Form 8832).

Source: IRS Written Determinations · 2026-06-05

04. Late Section 754 Election Basis Adjustments

• When granted an extension for a late Section 754 election, partnership property basis adjustments (Section 734(b) or 743(b)) must reflect what would have been made if the election was timely, including adjusting deductions for prior years even if the statute of limitations has expired.
• Affected partners must also adjust their interest basis to reflect what it would have been if the Section 754 election had been timely made, regardless of whether the statutory period of limitations for assessment or refund has expired for any year.

Source: IRS Written Determinations · 2026-06-05

05. Partnership Form 8308 & Disaster Relief Updates

• Final regulations extend the deadline for partnerships to furnish the Part IV computational information for Section 751(a) exchanges on Form 8308, from January 31 to the partnership's return due date, for returns filed for taxable years ending on or after May 20, 2026; the January 31 deadline for furnishing the rest of Form 8308 (Parts I-III) is unchanged.
• The IRS acquiesces in result only to the Tax Court's holding that a mandatory 60-day tax deadline postponement under IRC 7508A(d) applied for Ohio taxpayers affected by the COVID-19 disaster from January 20, 2020, to March 20, 2020.

Source: IRS Internal Revenue Bulletin · 2026-06-01