Kelly Libhart, a partner in Grant Thornton’s corporate tax solutions group who moderated the session, set the theme at the outset. For tax accounting teams, she said, the challenge “isn’t just understanding the rule changes” but understanding where they create “balance sheet forecasting and some compliance implications.”

That tension surfaced quickly in the trade updates. Danielle Donley, a director in the corporate tax solutions team, walked through the July 23 expiration of the prior 10% global tariff regime under Section 122 and its replacement with new Section 301 tariffs ranging from 10% to 12.5%. Litigation is already underway, including an August 3 lawsuit by 25 states, and Donley noted that a May 2026 ruling striking down the Section 122 tariffs “raised the possibility of a future refund scenario.”

Her central caution, though, was a reporting one. Because tariffs are not income taxes, Donley said, they fall outside ASC 740 and are instead capitalized to inventory or expensed above the line, correcting what she called “a genuinely common misconception.” She urged companies to review supply chains and import classifications, confirm whether products qualify for available exemptions, and keep supporting documentation.

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