Tax planning & Preparation - Recent Threads

3 stages of the indirect tax transaction lifecycle where retail compliance gets complicated

Neil Vicente — Mon, 07 Sep 2026 12:23:42 GMT

What’s supposed to happen: Your tax engine calculates the rate at checkout. That calculation feeds into downstream systems for invoicing and compliance.

Where it goes wrong: The tax calculation itself is accurate, but the data doesn’t include everything downstream systems need.

Maybe it’s missing fields required for e-invoicing clearance.
Maybe the line-item structure doesn’t match what your compliance system expects.
Maybe promotional discounts are recorded in a way that creates reconciliation problems later.

Why it matters: Errors at the calculation stage flow through every subsequent stage of the lifecycle. By the time you’re preparing returns, you’re untangling the consequences a calculation error made earlier.

What a connected lifecycle fixes: When your tax calculation system can pass compliant data to downstream systems, the content needed for e-invoicing and compliance is structured correctly from the start. Data that’s required for both determination and e-invoicing submissions can be leveraged by your e-invoicing platform without reformatting or manual intervention.

To dig deeper, visit the original article on the Thomson Reuters blog.

Economic nexus: How to keep up with changing sales and use tax requirements

Nageshwaran Gopal — Mon, 31 Aug 2026 19:56:37 GMT

What is economic nexus?

The South Dakota v. Wayfair Supreme Court ruling marked a drastic shift in tax law precedent and established a new definition of nexus. Before Wayfair, nexus depended on a company’s “physical presence” in the state. But in a post-Wayfair world, if your business sells goods in any state — even if you don’t have a physical presence in that state and the transaction is online only — you may be obligated to register in that state and collect sales tax if you exceed the “economic nexus” threshold.

With economic nexus now defined by different thresholds across jurisdictions, retailers must follow nexus laws in all 50 states, not just where they have physical operations. Add in the widespread use of drop-shipping post-Wayfair, and the situation becomes even more complex. For retailers operating digitally, indirect tax software tools are essential for maintaining compliance with economic nexus laws and meeting states’ varied sales tax requirements.

To dig deeper, visit the original article on the Thomson Reuters blog.

The AI-native tax prep checklist

Nageshwaran Gopal — Mon, 31 Aug 2026 19:37:15 GMT

The technology is rarely what stalls the decision. What gets you to “yes” is meeting each objection with the right framing and your firm's own numbers. This checklist gives you both.

You'll get:

The capacity math that turns “maybe someday” into a defensible number
Three revenue pathways that convert recovered hours into dollars your partner can find on the profit and loss statement
The reframe that turns AI from a liability into risk reduction, plus the single question that settles the argument
A prep checklist for all seven objections, so you walk in with your firm's real data instead of a vendor's estimates
A 10-point readiness check that tells you when you're ready to make the ask, and exactly what to ask for

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Fall 2026 Filing Deadlines & Resources

Robyn Tippins — Mon, 24 Aug 2026 20:55:58 GMT

Entity	Date	Help and Support
1040	10/15/2026	1040 IRS filing deadlines
1120	9/15/26 or 10/15/26	1120 IRS filing deadlines
1065	9/15/2026	1065 IRS filing deadlines
1041	9/30/2026	1041 IRS filing deadlines
990	11/16/2026	990 IRS filing deadlines
5500	10/15/2026	Department of Labor (DOL) 5500 filing deadlines and electronic filing information
2290	Varies	IRS.gov article: When Form 2290 Taxes are Due

The Automatic Exemption from Penalty (AEP) Program – Hidden Pitfalls

Neil Vicente — Mon, 24 Aug 2026 11:37:48 GMT

For years, the IRS has offered penalty relief to taxpayers with a strong compliance history who make honest mistakes. Known as First Time Abate (FTA), the program can remove certain failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers who were compliant during the previous three years. However, the relief was not automatic. Taxpayers had to request it after a penalty was assessed, leaving many eligible individuals unaware of the benefit or unable to navigate the process, especially unrepresented taxpayers or those with limited resources.

In a significant change to its penalty relief procedures, the IRS has announced a new Automatic Exemption from Penalty (AEP) program that will automatically waive certain penalties for eligible taxpayers with a strong compliance history. Announced in IR-2026-83, the program eliminates the need for taxpayers to request relief and is intended to replace the long-standing First Time Abate (FTA) program.

The AEP rollout will begin in summer 2026 for eligible 2025 individual returns and 2026 quarterly returns. It is scheduled to fully replace FTA for returns with original due dates on or after 1/1/27.

To dig deeper, visit the original article on the Thomson Reuters blog.

Multistate Tax Trends: KPMG Managing Director Sarah Vergel de Dios on Renewable Energy, Data Centers, Nexus, and Voluntary Disclosure Strategy

Neil Vicente — Mon, 24 Aug 2026 11:32:56 GMT

Multistate tax practice is always evolving. The Catalyst state team stays on top of trends, consulting with leading SALT practitioners and incorporating their insights, along with our in-depth analysis, into Checkpoint Catalyst topics that integrate into CoCounsel Tax.

This installment of our Multistate Tax Trends Q&A series features Sarah Vergel del Dios, a State and Local Tax Managing Director at KPMG US, based in Houston, Texas, with a focus on indirect tax. Sarah has deep experience in multi-state consulting, controversy, and reverse audit services for clients across various industries, including energy and manufacturing. She excels in advising clients on strategies and systems that can flex with shifting state tax rules.

Here Sarah and Catalyst’s Rebecca Newton-Clarke discuss how federal tax changes and tariffs are reshaping renewable energy project economics and sales tax exposure, as well as the retreat of data center incentives amid public scrutiny, the rise of state efforts to tax AI-powered services, and strategic considerations for voluntary disclosure in an era of expanding nexus.

To dig deeper, visit the original article on the Thomson Reuters blog.

How to enter NOL of 1120 tax return?

David Jeong — Fri, 21 Aug 2026 19:48:38 GMT

Just switched to UltraTax CS from nonconvertible tax program.

I need to enter all tax returns that I did with old tax program. I am doing this for training myself and for 2026 tax year

NOL worksheet from 2025 tax return shows "NOL Carryover for Next Year------------$104399"

How do I enter this info on 2025 UltraTax CS?

Appreciate your help

David

Where email intake and generic client tax portals fall short

Nageshwaran Gopal — Mon, 17 Aug 2026 13:58:33 GMT

From missing documents to endless email threads, small workflow issues can leave a lasting impression on clients

Highlights

Email and basic client portals often create confusion, delays, and unnecessary administrative work for both clients and staff.
A purpose-built tax collaboration platform provides visibility, security, and automation throughout the engagement process.
Consolidating gathering, signing, payment, and delivery into one workflow improves the client experience while reducing operational costs.

To dig deeper, visit the original article on the Thomson Reuters blog.

Connected tax provision: Why the calculation is only the beginning

Nageshwaran Gopal — Mon, 17 Aug 2026 13:57:43 GMT

Highlights

Tax provision technology is improving, but errors and delays still concentrate in the handoffs surrounding the calculation.
Tax departments spend 56% of their time on reactive work, showing the real bottleneck lies outside the provision engine itself.
Connected platforms like ONESOURCE Data Hub move data from ERP through provision to compliance without manual re-entry or reconciliation.

To dig deeper, visit the original article on the Thomson Reuters blog.

GAO finds paper refund wait times almost tripled in 2026 tax season

Nageshwaran Gopal — Mon, 17 Aug 2026 13:49:53 GMT

Staffing, system gaps

The IRS processed about 98% of the 177 million individual and business returns it received, the same share as in 2025, with 95% filed electronically. Still, paper filers waited longer. The average time to process a paper individual income tax return climbed to 30 days, well above the agency’s 13-day goal and up from 16 days in 2025, the GAO found in a report made available August 10.

Business payroll tax returns took even longer, averaging 72 days against a 32-day policy.

The GAO tied the delays to unavailable systems and reduced staffing. The IRS’ individual paper processing system could not handle tax year 2025 returns for the first six weeks of the season, and its scanning system for business paper returns was unavailable the entire season. Officials said the systems were not ready because of the recent loss of experienced IT acquisition staff.

To dig deeper, visit the original article on the Thomson Reuters blog.

Thomson Reuters and Oracle

Nageshwaran Gopal — Mon, 17 Aug 2026 13:34:09 GMT

What you'll learn:

Why growing e-invoicing requirements are reshaping compliance strategies
Three approaches to managing expanding compliance demands
How a connected compliance model can simplify tax determination, e-invoicing, and reporting
Whether your current approach can scale with future mandates

To dig deeper, visit the original article on the Thomson Reuters blog.

A new era of efficiency: Sumitomo Corporation of Americas corporate tax evolution

Neil Vicente — Mon, 10 Aug 2026 12:05:09 GMT

In today’s global business landscape, efficiency and accuracy in tax compliance are essential for multinational organizations. For Sumitomo Corporation of Americas (SCOA), a company with operations spanning nearly every industry, the complexity of tax compliance is heightened by its broad reach and diverse subsidiaries. With a parent company in Japan and a tax team responsible for U.S. compliance, consolidation, planning, audit, and consulting across the Americas, SCOA must ensure its processes are streamlined, automated, and visible. These capabilities are critical not only for compliance but also for supporting business growth and agility.

SCOA is a global enterprise with a presence in nearly every sector. The tax department acts as a service center for the United States, handling everything from general tax entries to tax return preparation and provision preparation. Their responsibilities include tax compliance, audit, planning, consulting, and oversight for the Americas, including Canada, Mexico, and South America. Managing this complexity requires robust systems and processes to ensure accuracy and streamlined performance.

To dig deeper, visit the original article on the Thomson Reuters blog.

What is the true cost of not upgrading tax software?

Nageshwaran Gopal — Mon, 03 Aug 2026 18:50:12 GMT

Why the real cost of outdated tax software shows up in lost time, staffing challenges, and missed growth.

Highlights

Nearly half of firms automate 25% or less of their tax workflow.
Talent shortages are already constraining 40% of firms.
Firms investing in AI and connected workflows report stronger profitability.

To dig deeper, visit the original article on the Thomson Reuters blog.

5 warning signs your corporate tax year-end close is at risk

Nageshwaran Gopal — Mon, 03 Aug 2026 18:31:09 GMT

Year-end doesn't announce itself. It arrives the way it always does — all at once, with every gap in your process showing at the worst possible moment. The good news: those gaps are visible months before close, if you know where to look.

Highlights

Scattered data, single points of knowledge, and reactive fire drills put your year-end close at risk.
Most tax departments remain stuck in reactive technology stages, repeating the same problems every cycle.
Automating your tax provision workflow closes these gaps before they close in on your team.

To dig deeper, visit the original article on the Thomson Reuters blog.

AI and reasonable care in trade compliance: What professionals actually need

Neil Vicente — Mon, 27 Jul 2026 11:49:30 GMT

Interest in AI is rising. Confidence hasn’t caught up.

It’s no surprise, then, that interest in AI has spiked. Forty percent of organizations are now exploring AI for trade management, compared to just 6% two years ago. The appeal is straightforward: if AI can compress hours of regulatory research into minutes, compliance teams get time back to do the work that requires human judgment.

But interest and adoption aren’t the same thing. Actual use of AI-powered software for trade management remains low — and the gap has a reason. Trade compliance professionals understand, better than most, what it costs to get something wrong. Before they hand any part of their workflow to an AI tool, they need to know it will hold up. Not just in practice, but under scrutiny — from leadership, from auditors, from CBP.

To dig deeper, visit the original article on the Thomson Reuters blog.

Appeals officer did not abuse their discretion sustaining levy against non-compliant taxpayer

Neil Vicente — Mon, 27 Jul 2026 11:43:38 GMT

The collection dispute

Don M. Tellock failed to file income tax returns for 2016 and 2017. In response, the IRS prepared a Substitute for Return (SFR) for each year and issued Notices of Deficiency. Because Tellock did not petition the Tax Court to challenge those notices, he was later barred from disputing the underlying tax liability.

In December 2022, the IRS issued a Final Notice of Intent to Levy for both years, prompting the Tellock to request a collection due process (CDP) hearing with the IRS Independent Office of Appeals. The court’s decision focused solely on the proposed levy for the 2016 tax year since by this time the taxpayer owed no tax for 2017.

To dig deeper, visit the original article on the Thomson Reuters blog.

How Thomson Reuters supports every stage of the indirect tax lifecycle

Neil Vicente — Mon, 27 Jul 2026 11:39:31 GMT

Managing indirect tax is a continuous cycle of determination, compliance, reporting, and audit defense. At every stage, the tools you use either slow you down or set you up for success.

We’ve built an interactive experience that maps Thomson Reuters ONESOURCE solutions across the full indirect tax lifecycle, so you can see exactly where the right technology makes the biggest difference.

From sales tax determination to exemption certificate management, VAT compliance to e-invoice validation, explore how each solution fits into your workflow and what it means for your team’s efficiency and accuracy.

To dig deeper, visit the original article on the Thomson Reuters blog.

What the World Cup teaches us about proactive tax planning

Nageshwaran Gopal — Mon, 20 Jul 2026 13:04:22 GMT

Why the best tax strategies, like championship teams, are built on preparation, adaptability, and smart decision-making.

Highlights

Great advisory starts with perspective, helping clients make better decisions before challenges arise.
Proactive tax planning requires ongoing adjustments as business conditions change throughout the year.
The most effective strategies are tailored to each client’s unique goals, timing, and circumstances.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS unveils new automatic penalty relief process

Neil Vicente — Mon, 13 Jul 2026 11:22:35 GMT

The IRS announced that this summer, it will transition to a new “systemic relief program” dubbed Automatic Exemption from Penalty (AEP). The program will provide automatic penalty relief to taxpayers who have a history of filing and paying on time. (IR 2026-83, 7/8/2026)

AEP will replace First Time Abate and is intended to provide a simpler and less burdensome process for taxpayers seeking penalty relief. “By automatically applying penalty relief, the IRS recognizes that taxpayers who historically pay on time should not have to make a formal request for relief that is routinely granted,” said IRS CEO Frank Bisignano.

To dig deeper, visit the original article on the Thomson Reuters blog.

What today’s tariff authorities actually demand: The data, visibility, and compliance gaps most manufacturers haven’t closed

Neil Vicente — Mon, 13 Jul 2026 11:11:44 GMT

Knowing which tariff authorities the U.S. government has available is necessary groundwork. But knowing the landscape and being equipped to comply with it are two different things. The authorities that have proven most durable — Section 232 and Section 301 — are not simply adding higher rates to familiar products. They are demanding a fundamentally different kind of compliance infrastructure: one built around supply chain composition, component-level documentation, real-time regulatory monitoring, and the ability to work backward and forward through a history of near-constant change.

Many organizations are not yet there. And the cost of that gap is being measured in delayed shipments, overpaid duties, audit exposure, and missed refund opportunities.

This is the second in a three-part series on tariff compliance in 2026. It examines what the durable active authorities actually require from manufacturers — and where existing systems consistently fall short.

To dig deeper, visit the original article on the Thomson Reuters blog.

Are Fringe Benefits Exempt From FICA Taxes If They Are Not Subject to Federal Income Tax?

Nageshwaran Gopal — Tue, 07 Jul 2026 12:58:09 GMT

QUESTION: If employees don’t have to pay federal income tax on a fringe benefit because the benefit isn’t treated as income under the Code, does that mean they don’t have to pay FICA taxes on it either?

ANSWER: Not always. Though it may seem like that should be true—either both income and FICA taxes should apply, or neither should apply, it isn’t quite that simple. While fringe benefits that are excluded from income for federal income tax purposes are usually exempt from the taxes funding Social Security and Medicare (collectively, FICA taxes), this is not always the case. (The same is true for federal unemployment tax (FUTA) and railroad retirement tax (RRTA).) Adoption assistance benefits are one example—the Code excludes amounts paid by an employer for qualified adoption expenses under an adoption assistance program from an employee’s income, subject to the applicable dollar and income limits, but those amounts are still subject to FICA taxes. Pre-tax contributions to 401(k) plans are another well-known example in the retirement plan context.

Global tax complexity outpaces simplification, survey finds

Neil Vicente — Mon, 29 Jun 2026 12:19:22 GMT

Tax complexity is top challenge for global businesses

For the third year in a row, tax transparency and reporting ranked as the top theme impacting businesses, with 38% of respondents naming increased compliance, administrative, and reporting requirements as the primary driver of operational impact. The complexity stems from multiple sources, including the Pillar Two global minimum tax rules from the Organization for Economic Cooperation and Development (OECD) and the European Union Carbon Border Adjustment Mechanism.

Part of the pressure reflects the one-directional nature of tax policy, Amanda Tickel, Deloitte global tax and trade policy leader, told Checkpoint. “It’s very rare that countries or governments remove taxes, they just tend to add more in,” she said. Multiplied across dozens of jurisdictions, that layering creates a sense of an ever-changing landscape.

With Pillar Two in its implementation phase, 88% of respondents expect to pay more tax as a result, though 56% anticipate only a marginal increase. Implementation is advancing unevenly, Tickel said. Major markets are proceeding, led by the European Union, while many jurisdictions, including India, China, and a number of Latin American and African countries, are not yet implementing any form of Pillar Two.

To dig deeper, visit the original article on the Thomson Reuters blog.

What is the Automated Commercial Environment (ACE)?

Neil Vicente — Mon, 29 Jun 2026 12:04:22 GMT

The Automated Commercial Environment (ACE) is the central system used by U.S. Customs and Border Protection (CBP) to track, control, and process all imported and exported goods. It serves as the primary system through which the trade community reports import and export data to the U.S. government.

For corporate trade compliance professionals, understanding ACE is only the beginning. In an era of escalating tariff volatility and heightened CBP enforcement, having the right technology infrastructure behind every ACE interaction is no longer optional — it is a competitive and compliance imperative.

To dig deeper, visit the original article on the Thomson Reuters blog.

United Missouri Bank streamlined compliance using ONESOURCE tax information reporting (OTIR)

Neil Vicente — Mon, 29 Jun 2026 11:59:57 GMT

Introduction

United Missouri Bank (UMB), headquartered in Kansas City, Missouri, serves a diverse customer base from individual account holders to large corporations. As UMB expanded, its legacy in-house tax reporting process became increasingly cumbersome, requiring manual file handling, in-house printing, and physical mailing of 1099 forms.

Thomson Reuters® ONESOURCE Tax Information Reporting (OTIR) provided UMB with the automation, efficiency, and control it needed to keep pace with regulatory change and rising customer expectations.

Challenge

UMB's legacy process was labor-intensive and misaligned with the industry's accelerating shift to electronic reporting. Every step in preparing tax forms required hands-on effort from file management to printing and mailing. As regulatory requirements grew more complex (including the IRS mandate for electronic filing of Form 1042), the limitations of the in-house system became impossible to ignore.

To dig deeper, visit the original article on the Thomson Reuters blog.

What exactly is direct tax?

Nageshwaran Gopal — Mon, 22 Jun 2026 16:08:24 GMT

Highlights

Direct tax is paid directly by the taxpayer to the government and commonly includes individual income tax, corporate income tax, property tax, estate tax, and payroll tax.
Direct tax compliance can become complex for businesses managing multiple jurisdictions, state apportionment rules, and evolving reporting requirements.
Modern tax teams use technology to improve accuracy and efficiency by centralizing data and automating calculations.

To dig deeper, visit the original article on the Thomson Reuters blog.