IRS Cancels Hearing on Refundable Tax Credit Rule
The public hearing set for Oct. 14, 2026, on the IRS's proposal to treat refunded tax credits as a PRWORA public benefit has been cancelled.
The Internal Revenue Service has cancelled the public hearing scheduled for October 14, 2026, at 10 a.m. ET on its proposed rulemaking (REG-119882-25) that would classify the refunded portion of certain refundable individual income tax credits as a "Federal public benefit" under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).
The proposed regulations were published in the Federal Register on August 20, 2026 (91 FR 53812) and are codified at 26 CFR part 1. They would extend PRWORA's definition of a federal public benefit to include refunds of credits such as the Earned Income Tax Credit, the Child Tax Credit, and other refundable credits, thereby affecting eligibility determinations for programs administered under PRWORA.
The notice of proposed rulemaking and notice of public hearing instructed interested parties to submit a request to testify and an outline of topics by October 5, 2026. The IRS received no such requests or outlines. Consequently, the agency determined that there was insufficient interest to warrant a hearing and formally cancelled the October 14 session.
Although the hearing is cancelled, the comment period remains open. Stakeholders may submit electronic comments through the Federal eRulemaking Portal at regulations.gov by searching for "IRS" and "REG-119882-25." The agency will consider all comments received before the final rule is issued.
For further information, contact the Publications and Regulations Section at (202) 317-6901 or by email at the address provided in the notice.
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