Five tax updates for Florida business owners in late October 2026

Late October is a busy time for the IRS, releasing several tax updates that impact how Florida businesses handle retirement plans, payroll, and security. These changes offer new tools for correcting errors but also require immediate action to stay compliant.

Below is a practical breakdown of what changed and what you should do next.

New IRA Correction Program Launched

The IRS has established the IRA Compliance Resolution System (ICRS) through Revenue Procedure 2026-33. This new program permits IRA custodians and owners to correct certain eligible inadvertent failures. These failures typically occur due to custodian errors or mistakes made by a service provider.

Previously, fixing these issues often required complex private letter ruling requests. ICRS simplifies this process, providing a clearer path to resolve errors without unnecessary penalties. The procedure also transitions requests for waivers of the 60-day rollover requirement from the old system to ICRS.

If you have an IRA and suspect a custodian error, this is a significant development. You should review your recent transactions to identify any potential issues. For specific guidance on how to apply this to your situation, consult a tax professional.

• Applies to individual retirement accounts and annuities.
• Corrects inadvertent failures due to custodian or service provider errors.
• Replaces private letter ruling requests for 60-day rollover waivers.

Retirement Plan Correction Rules Updated

The IRS issued Revenue Procedure 2026-34 to revise and update the Employee Plans Compliance Resolution System (EPCRS). This system helps plan sponsors of retirement plans that have not met Internal Revenue Code requirements for a period of time.

EPCRS includes the Self-Correction Program, the Voluntary Correction Program, and the Audit Closing Agreement Program. These components allow sponsors to correct failures and continue providing tax-favored retirement benefits to employees. The update ensures the rules remain current and easier to navigate.

Errors in plan administration can have long-term consequences for both the business and its employees. A CPA can help assess whether your plan needs correction under the new guidelines.

• Updates Revenue Procedure 2021-30.
• Maintains three correction programs: Self, Voluntary, and Audit Closing.

Payroll Professionals: Per Diem and IRIS Updates

The IRS issued special per diem rates effective Oct. 1, 2026. These rates help taxpayers substantiate expenses for lodging, meals, and incidental expenses when traveling. The notice covers special transportation industry rates, incidental expenses only deductions, and high-cost localities for the high-low substantiation method. Details are available in Notice 2026-60.

Additionally, the IRS corrected information regarding IRIS prior year schema packages for Tax Years 2017-2022. These packages are not currently available. A previous QuickAlert incorrectly stated they were available. No action is required, and taxpayers should not contact the help desk to request them. The IRS will issue a new alert when they become available.

Businesses handling employee reimbursements need to use the correct rates for travel expenses incurred after October 1. Using outdated rates can lead to substantiation issues during an audit. Keep accurate records of travel dates and locations to match the applicable per diem rates.

• Special per diem rates effective Oct. 1, 2026.

• IRIS prior year schema packages for 2017-2022 are not available.
• Do not contact the IRS help desk for unavailable IRIS packages.

Protect Your Tax Data with an IP PIN

The IRS reminds taxpayers to safeguard their online account credentials and obtain an Identity Protection PIN (IP PIN). An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using your Social Security number or ITIN. It is known only to you and the IRS.

Taxpayers who plan to file early in 2027 should request an IP PIN before the online system becomes unavailable for annual maintenance in mid-November. The system generally becomes available again in mid-January. You can obtain an IP PIN even if you are not required to file a return. For more information, see Protect Your Tax Data: Why You Need an Identity Protection PIN Now.

Never share your IP PIN with anyone except a trusted tax professional when preparing your return. The IRS will never call, email, text, or contact you through social media to request this number. Taking this proactive step helps prevent tax-related identity theft.

• IP PIN is a six-digit number for identity protection.
• Request before mid-November system maintenance.
• System reopens in mid-January.

Year-Round Tax Planning Reminders

The IRS encourages taxpayers to take simple steps now to stay organized and avoid surprises during filing season. Year-round tax planning helps you understand how changes in your life or income may affect your taxes. This is particularly important for Florida residents, as there is no personal state income tax, making federal withholding and estimated payments critical.

You can use the Tax Withholding Estimator on IRS.gov to check if you are having the right amount of federal income withheld. Review your withholding after major life events like marriage, divorce, or a job change. Small business owners and self-employed individuals may need to make quarterly estimated tax payments.

Good recordkeeping is essential. Develop a simple system to keep important tax records together, such as Forms W-2, 1099, and records of digital assets. These habits help you manage income changes effectively and prepare for the 2027 filing season. For more tips, see New IRA Correction Program: Fix Errors Without Penalties.

• Use the Tax Withholding Estimator to check federal withholding.
• Make quarterly estimated payments if you have income not subject to withholding.
• Keep organized records of W-2s, 1099s, and digital assets.

How SK Financial can help

Navigating these tax updates can be complex, especially when multiple changes affect different aspects of your business. At SK Financial CPA, we help small-business owners in Wesley Chapel and Tampa stay compliant and organized. Our team reviews your retirement plans, payroll practices, and personal tax security to ensure you are prepared.

If you have questions about IRA corrections, EPCRS, or how to protect your tax data, we are here to help. Contact us to book a consultation and discuss how these changes impact your specific situation. You can also see our services.