Time is running out to file your tax return.gettyAfter more than 30 years with IRS Criminal Investigation (CI), Chief Guy Ficco is stepping down, closing out a tenure marked by transition within the agency. During his time as chief, CI faced hiring freezes and the reassignment of a substantial portion of its workforce to immigration enforcement, even as it pushed forward with technology and AI-driven investigative tools. Despite those challenges, in an exit interview with Forbes, Ficco emphasized a return to CI’s core mission—following the money in tax and financial crimes—and expressed confidence that incoming Chief Jarod Koopman will continue that focus with a still-committed workforce.Of course, tax authorities often advance cases built on solid tips. The House Ways and Means Committee has voted to unanimously advance the IRS Whistleblower Program Improvement Act (WPIA), signaling strong bipartisan support to strengthen and modernize the program. The legislation aims to address long-standing issues, including delays in award payments, by incentivizing timelier processing and enhancing protections such as anonymity and access to de novo judicial review (meaning the court looks at the issue from scratch without deferring to the prior decision). Building on a program that has already generated more than $7.5 billion in collections, the proposed reforms are designed to improve fairness, encourage participation, and help the IRS more effectively target noncompliance, with the bill now moving toward consideration by the full House.While enforcement efforts are key, most taxpayers will file and pay their taxes in full and on time (more on that later). But this year, with April 15 just days away, tens of millions of taxpayers still haven’t filed their 2025 tax returns. The IRS expects to receive 164 million individual income tax returns by April 15. So far, the IRS has received 99,802,000 individual income tax returns, compared to 101,422,000 at the same point in 2025, a 1.6% decline. Notably, that gap has persisted throughout the filing season rather than narrowing as the deadline draws closer—usually, the difference between current and prior-year filings begins to tighten by this time of year. If you’re one of those taxpayers still hoping to get your tax return in on time, be sure to take a breath and review it for potential errors. Common filing mistakes can cause delays and frustration for taxpayers. Many of these issues are easy to miss, like transposing Social Security numbers or name mismatches, while others (like choosing the wrong filing status) may reflect a misunderstanding of the rules. Even small discrepancies can result in rejected returns, denied credits, or processing delays. So, don’t rush through your return. Put aside some time to check (and double-check) it before filing. Of course, if you haven’t filed yet because you’re not ready (like me), you can always request an extension. There’s more good stuff to come, so check back with Forbes for Tax Day-related information, including a list of freebies and deals to ease the pain of writing that check (trust me, you deserve it). Enjoy your weekend,Kelly Phillips Erb (Senior Writer, Tax)This is a published version of the Tax Breaks newsletter, you can sign-up to get Tax Breaks in your inbox here.QuestionsDon't believe everything that you hear when it comes to tax bills.gettyThis week, a reader asks:My neighbor brags that he hasn’t filed taxes in years. Why can’t the IRS find everyone who hasn’t filed their taxes?The IRS doesn’t “find everyone” who hasn’t filed because the system is built on voluntary compliance, and most taxpayers do comply. The IRS’s latest data shows a voluntary compliance rate of about 85% for tax year 2022, meaning roughly 85 cents of every dollar owed is paid on time without enforcement.That said, the IRS has some resources at its disposal to track down non-filers. The biggest tool is information reporting. Employers, banks, brokers, and platforms send the IRS copies of Forms W-2 and 1099. The IRS computers then run matching programs to see who had income but didn’t file a return.The IRS can also use prior filing history and data analytics. If you’ve filed in past years and suddenly go silent while income reports keep rolling in, that’s a red flag. And don’t forget tips from other audits (like those on businesses) and whistleblowers. The IRS prioritizes cases based on likelihood of collection and compliance impact, so not every nonfiler gets chased immediately—but the ones with visible income trails tend to surface eventually.(One last thought: I’m often suspicious of folks who brag about how long they’ve gone without filing their taxes. It reminds me of the kids in high school who used to brag about how many drinks they snagged from their parents’ liquor cabinet or how many girlfriends they had. It’s a lot of bluster and, conveniently, there’s very little evidence beyond the stories they tell to back it up.)Statistics, Charts, and GraphsThe IRS has released more guidance (in the form of Final Regulations) about no tax on tips.Kelly Phillips Erb The new “no tax on tips” provision allows eligible taxpayers to deduct up to $25,000 in qualified tips from taxable income for tax years 2025 through 2028. Now, the IRS has issued final regulations that make clear that not all tips—or all workers—will qualify. To count, tips must be voluntary payments from customers, tied to occupations that “customarily and regularly” received tips before December 31, 2024. The IRS leaned heavily on real-world tipping practices and data, as well as public comments, to determine eligibility.Alongside the usual suspects, the final regulations confirm that people who dress up as Santa Claus for parties—and other character or celebrity impersonators—count as tipped workers under the “Entertainers and Performers” category. But it doesn’t stop at the North Pole. The IRS also included roles like horse groomers, yoga instructors, doormen, banquet wait staff, winery tasting room servers, and even eyelash technicians.There are other wonderfully specific additions, including gas pump attendants (a nod to states like New Jersey), floral designers, and visual artists such as caricature sketch artists and ice sculptors. Even the most niche of travel guides—think hiking guides or ghost tour leaders—qualify.The rules also draw firm boundaries around what does not qualify (sorry, tax preparers!). Mandatory service charges, commissions dressed up as tips, and payments tied to pricing or compensation systems are excluded, as are tips connected to certain specified service trades or businesses like law, accounting, and consulting. Even within qualifying occupations, substance matters—digital creators, for example, can only treat truly voluntary payments as tips, not charges for access to content.Taxes From A To Z: N is for Net Investment Income Tax (NIIT)The NIIT applies to passive income, not earned income.gettyThe Net Investment Income Tax (NIIT) is a 3.8% surtax that applies to certain types of passive income for high income individuals, estates, and trusts. It was introduced as part of the Affordable Care Act and kicks in when modified adjusted gross income (MAGI) exceeds $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. The tax applies to the lesser of net investment income or the amount by which MAGI exceeds those thresholds.Net investment income generally includes items like interest, dividends, capital gains, rental income, and passive business income. Net investment income does not include wages, self-employment income, and distributions from qualified retirement plans. Planning around NIIT often involves timing. Managing when you recognize gains and using capital losses to offset investment income can help minimize the impact of the NIIT, as can shifting assets into tax-advantaged buckets like retirement accounts. It can also involve rethinking whether income is truly passive, since materially participating in a business can change whether the surtax applies.Tax TriviaIn 2014, the U.S. Tax Court decided a case brought by Harsh Sharma, a taxpayer whose petition was ultimately deemed filed late. Sharma argued that the petition should have been accepted as timely filed because he had hand-delivered it to someone to mail it for him, as he was otherwise unable to do so. Where was he? (A) Antarctic research station(B) Hospital(C) Prison(D) War zoneFind the answer at the bottom of this newsletter.Positions And GuidanceThe Treasury Department and the IRS have issued proposed regulations for the new 1% excise tax on certain remittance transfers under the One Big Beautiful Bill Act (OBBBA), which takes effect January 1, 2026. The tax applies to transfers from the U.S. to foreign recipients funded with cash or similar physical instruments. The sender is ultimately liable, though providers must collect, deposit, and report the tax. The proposed rules clarify key definitions and calculation methods and offer early penalty relief for providers during the first three quarters of 2026. Public comments are open through June 12, 2026.Treasury and the IRS have issued guidance outlining how state leaders can nominate census tracts for designation as Qualified Opportunity Zones (QOZs) under OBBBA, which permanently extends and enhances the program. Beginning July 1, 2026, states will have a 90-day window to nominate eligible low-income communities—over 25,000 identified nationwide, including many rural areas—with final designations taking effect January 1, 2027. The updated framework aims to drive long-term private investment into economically distressed areas.NoteworthyThe IRS is opening select Taxpayer Assistance Centers (TACs) on Saturdays—April 11 and April 25, from 9 a.m. to 4 p.m.—to provide taxpayers more access to in-person help during filing season. Locations across dozens of states, D.C., and Puerto Rico will offer most standard services (minus cash payments). Details are available at IRS.gov/SaturdayHours. Check the TAC Locator online before heading in.Vertex, a provider of enterprise compliance technology for global commerce, is rolling out new AI-driven capabilities within its cloud platform. By connecting data and decisions across the compliance lifecycle, Vertex aims to help tax, finance, and IT teams respond in near real time.Treasury’s Office of Cybersecurity and Critical Infrastructure Protection has launched a new initiative to bolster cybersecurity across the digital asset industry by sharing actionable threat intelligence with eligible U.S. firms at no cost. The move reflects growing concern about increasingly sophisticated cyber threats and the expanding role of digital asset companies in the broader financial system. The American Bar Association Section of Taxation has responded to the Treasury’s request for input on updating the Financial Literacy and Education Commission (FLEC) annual review of the U.S. National Strategy for Financial Literacy by offering targeted recommendations. Specifically, the section urges greater emphasis on tax-related education, including designating tax literacy as a priority and establishing an IRS-led initiative to improve it. The response also highlights the need to expand financial and tax education for small businesses and to strengthen consumer protections by improving education about tax scams and fraudulent preparers.Key Figures75%Kelly Phillips ErbThat’s the excise tax that New York Gov. Kathy Hochul (D) has proposed on nicotine pouches, which are not smoked but placed between the lip and gum, and touted as an easy way to give up cigarettes. Hochul’s tax would treat pouches as if they were cigarettes, with Hochul’s budget director saying, “We see it as a distinction without a difference.” (Nicotine is addictive, but some experts suggest that it’s the rest of what’s in a cigarette that makes it so lethal.)Steve Forbes writes that the tax is “a form of medical malpractice.” Imposing a 75% excise tax on nicotine pouches on the basis that they’re like cigarettes, he says, may discourage some smokers from switching to pouches, raising the risk of such deadly tobacco-causing diseases as lung cancer.Trivia AnswerThe answer is (C). At the time he filed the petition, Mr. Sharma was in prison. In some federal courts, there’s something called the “prison mailbox rule,” which treats a filing as timely when an inmate hands it to prison authorities because, realistically, they can’t control what happens after that. But that rule is applied unevenly across the country, depending on the matter and the jurisdiction. In Sharma v. Commissioner, a U.S. Tax Court case, Mr. Sharma argued that his petition was timely mailed. The IRS did not dispute that Mr. Sharma may have given his petition to prison personnel before the due date. Instead, it argued that the only date the Court could consider was the one stamped on the envelope, which was after the due date. The Tax Court “reluctantly” agreed with the IRS, finding that even if Mr. Sharma could prove that he delivered the petition to authorities in a timely manner, the petition would still be untimely under Rich v. Commissioner (11th Cir. 1957). In that case, the court held that despite a finding that a prisoner timely delivered a Tax Court petition to prison officials (and the prison accidentally failed to mail it until contacted by the taxpayer’s lawyer), the petition was untimely and the case must be dismissed. By law, a tax return or payment is considered filed on the date of the U.S. postmark. This means taxpayers can mail returns and checks up to and including the filing deadline. The mailbox rule has been relied upon in tax audits and in Tax Court for years. However, last year, the U.S. Postal Service clarified that most postmarks reflect the date of processing, not necessarily the date a mailpiece was deposited by the sender, so dropping it in a mailbox isn’t sufficient. Your best bet? Buy postage at the counter, ask for a manual postmark, purchase a Certificate of Mailing, or use registered or certified mail.Worth A Second LookThe links, clips, and tax takes readers loved (and a few you may have missed):How My Widowed 77-Year-Old Mom Lost Social Security Benefits For Five Months (article)How Some 70-Year-Olds Are Suddenly Missing Social Security Benefits (video)What Gig Workers And Freelancers Need To Know About Taxes Now (article)You can find last week’s newsletter here.Tax Filing Deadlines📅 April 15, 2026. Deadline for individual tax returns to be filed with the IRS (or to request an extension).Tax Conferences And Events📅 May 7-9, 2026. American Bar Association Section of Taxation May Tax Meeting. Marriott Marquis, Washington, DC. 📅 June 3-6, 2026. Tax Retreat—The Anticonference. San Antonio, Texas. 📅 June 8-11, 2026. AICPA Engage. ARIA Resort & Casino, Las Vegas & live online. FeedbackWe’d love your thoughts. What’s helpful? What’s confusing? What tax topics do you want more of? Email me directly—I read every message.If you have a tax question, conference or tip for me, check out our guidelines and submit it here.