Farm & Ag
Feds Join Indiana in Letting Dyed Diesel on the Road — Through December 31
Running dyed diesel on the road is safe federally through December 31. On the Indiana side, that only holds through November 4 unless the governor extends again.
On October 14 the IRS said it won’t impose federal excise tax penalties on dyed diesel sold for, or used in, highway vehicles anywhere in the country. The relief follows a presidential executive order signed October 5, is retroactive to October 1, and runs through December 31, 2026. The IRS has suspended roadside inspections of on-road dyed fuel during that window. Users don’t have to keep records proving they qualify, and sellers don’t have to track where the fuel ends up.
This is the federal side of the waiver Governor Braun already gave Indiana farmers and timber harvesters, but the two don’t line up. The IRS stresses that its relief covers federal tax only. Indiana’s state waiver and gas tax holiday are currently set to end November 4, so after that date state rules could apply again even though federal relief continues. The IRS also says more guidance on Form 720 reporting is coming.
Source: IRS Newsroom (IR-2026-122)
Retirement
Social Security Sets a 3.6% Raise and a $192,300 Wage Base for 2027
Retirees get 3.6% more in January. If you earn over $184,500 or are self-employed, expect a bit more Social Security tax in 2027.
The Social Security Administration announced on October 14 that benefits will rise 3.6% starting in January 2027, with SSI recipients seeing their increase on December 31, 2026. The taxable wage base, the amount of earnings subject to the 6.2% Social Security tax, rises from $184,500 to $192,300. At the cap, both the employee and the employer will pay $11,922.60.
For people collecting benefits before full retirement age while still working, the earnings limit rises to $25,560, above which $1 of benefits is withheld for every $2 earned. For those reaching full retirement age in 2027, the limit is $67,920, with $1 withheld for every $3 above it. High earners and the self-employed should plan for a slightly bigger tax bill, and payroll systems need the new cap by January 1.
Source: Journal of Accountancy
Deadlines & Rates
Hurricane Isaias Victims Get Until February 2027
If you have property or a family business in the affected Gulf Coast counties, you may have more time than you think. Hoosiers outside those areas still had October 15.
Following up on last week’s story, the IRS granted disaster relief on October 14 to taxpayers in 40 Alabama counties and 27 Florida counties hit by Hurricane Isaias. Filing and payment deadlines that fell on or after October 7 in Alabama now run to February 4, 2027, and those on or after October 9 in Florida run to February 8, 2027. That covers the October 15 deadline for extended 2025 individual returns, plus certain partnership, S corporation, trust, employment and excise tax returns.
The IRS applies the relief automatically to taxpayers with an address of record in a covered county. Payroll and excise deposit penalties are also waived if the deposits are made by October 22 (Alabama) or October 26 (Florida). People with storm losses can choose to claim them on either their 2026 return or their 2025 return, which can mean getting a refund sooner.
Source: Journal of Accountancy
Families
Adoptive Families Are Getting Automatic Refunds From Old Credit Carryforwards
If you adopted in recent years and carried credit forward, watch your mail and keep the IRS notice with your 2025 tax records.
On October 16 the IRS said it has begun sending refunds to more than 50,000 taxpayers who carried forward unused adoption tax credit from 2020 through 2024. Treasury clarified that under the 2025 tax law, those carryforwards can increase the refundable portion of the credit on 2025 returns only. The extra refundable amount is capped at $5,000 per child.
Most people don’t need to do anything. If you filed your 2025 return by April 15, the adjustment should happen on its own, with a notice arriving within about 30 days. Extended returns and accounts with identity theft flags or other issues will be reviewed later this year. The IRS specifically says an amended return shouldn’t be needed.
Source: IRS Newsroom (IR-2026-123)
IRS
The IRS Can Now Take Card Payments Without a Middleman
Paying by card will still cost you a fee. Bank transfers through Direct Pay remain the cheapest way to pay.
Final regulations released October 16 let the IRS accept credit and debit card tax payments directly, instead of only through outside payment processors. The rules apply to payments made on or after October 19, 2026, and adopt the July 2024 proposal without changes. The old rule barred the IRS from paying card processing fees itself. That ban is gone, but the IRS has to charge the full fee back to the taxpayer, paid on top of the tax.
The IRS says the change means guaranteed receipt of funds, fewer paper checks, and eventually the option of paying by card over the phone without being routed to a third-party processor. It hasn’t said when the direct option will launch. In the meantime, paying from a bank account through IRS Direct Pay or your online account is still free.
Source: Journal of Accountancy