Tax Research & Guidance - Recent Threads

ABA urges Tax Court to clarify, revise proposed practice rules

Nageshwaran Gopal — Mon, 03 Aug 2026 18:42:27 GMT

U.S. Tax Court Chief Judge Patrick Urda announced proposed changes to Title XX of the court’s Rules of Practice and Procedure on May 26. Among the changes are revisions to Rule 200 regarding non-attorney examination and admission. The proposal also would revise Rule 202 to clarify a practitioner’s obligation to inform the court of information ranging from a change of address to a criminal conviction; adopt a procedure to suspend a practitioner who has been suspended or disbarred by another court, licensing body, or U.S. agency; and address disciplinary proceeding staffing.

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

Why your indirect tax compliance process is only as strong as the people running it

Nageshwaran Gopal — Mon, 03 Aug 2026 18:41:42 GMT

Technology can transform your indirect tax compliance operations, but only if your team knows how to use it.

Highlights

Only 50% of corporate tax departments offered technology training in 2025, despite rising AI budgets.
64% of tax departments remain stuck in the chaotic or reactive stage of technology maturity this year.
One in four professionals facing an AI value gap plan to leave within two years, at $232,000 per replacement.

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

The hidden cost of a disconnected tech stack: A self-assessment for tax firms

Nageshwaran Gopal — Mon, 03 Aug 2026 18:41:04 GMT

This self-assessment helps tax firms uncover the real cost of a disconnected workflow, put a number on it, and determine where an integrated solution can make the biggest difference.

Inside, you’ll discover:

How to count and score every manual handoff in your workflow
The cumulative time cost of data entry, multi-entity transfers, and delivery
Where error risk is highest in a disconnected process
How your current setup stacks up against an integrated solution

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

The tortured journey of data: How tax technology speeds up tax compliance, provision, and reporting

Nageshwaran Gopal — Mon, 20 Jul 2026 14:19:08 GMT

Highlights

Tax compliance data automation has reduced return preparation time by 50% and delivered 148% ROI.
Disconnected legacy systems previously cost organizations $275,000 more annually in avoidable compliance expenses.
Real-time dashboards transform tax departments from reactive compliance to strategic business partners.

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

Opportunity and execution: How tax professionals can learn from the World Cup

Neil Vicente — Mon, 13 Jul 2026 11:23:32 GMT

Like championship teams, successful tax firms gain an edge through preparation, precision, and timing.

Highlights

Multiple tax paths may be available, and the best choice depends on your business goals, structure, and future plans.
Strong tax outcomes are usually driven by proactive planning and a series of well-timed decisions made throughout the year.
Advances in technology and data analysis make it easier for the IRS to identify inconsistencies and examine tax positions that may have once gone unnoticed.

Every four years, the World Cup gives us something familiar: a structured game, clear rules, and a single objective. Win.

But anyone who follows the tournament knows that what looks simple on the surface is actually anything but. Every decision, every adjustment, and every small advantage can change the outcome. Taxes are much the same way.

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

IRS Circular 230 AI guidance explained

Neil Vicente — Mon, 13 Jul 2026 11:19:58 GMT

Find out what OPR Alert 2026-19 has do say about AI use in the tax profession

Highlights

How the IRS is applying existing Circular 230 standards to AI
Why AI is recommended as a support tool rather than a fully autonomous agent
Why the IRS recommends efficiency savings be passed on to clients

The IRS Office of Professional Responsibility (OPR) has issued its first formal guidance on AI, applying already professional standards under Circular 230 to the use of AI tools in the tax profession. Here’s what that means for tax and accounting firms across the country.

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

Connecticut discusses conformity to federal research, experimental expenditures

Neil Vicente — Mon, 13 Jul 2026 10:50:45 GMT

The Connecticut Department of Revenue Services has issued guidance discussing the state’s conformity to the federal research and experimental expenditures under IRC § 174 and IRC § 174A for corporation business tax purposes. Recent legislation specifically decoupled Connecticut’s conformity to IRC § 174 by providing that for income years beginning on or after January 1, 2022, and before January 1, 2026, any research or experimental expenditures paid or incurred for those income years must be deducted as permitted under IRC § 174, as in effect on July 3, 2025. The same legislation delayed Connecticut’s conformity to IRC § 174A by one year by providing that for income years beginning on or after January 1, 2025, and before January 1, 2026, the deduction under IRC § 174A is disallowed.

Thus, for income years beginning on or after January 1, 2026, qualifying research or experimental expenditures incurred are treated consistently with IRC § 174A. However, corporations that claimed a subtraction modification under IRC § 174 as it existed on July 3, 2025, in an income year before January 1, 2026, may continue to claim the deduction to the extent allowable in an income year that begins on and after January 1, 2026. In these circumstances, the corporation must prepare and maintain Connecticut-specific amortization schedules relative to the research and experimental expenditures until the associated deductions are fully recovered. (Taxpayer Services Special Bulletin, TSSB 2026-2, 07/02/2026.)

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

House taxwriters approve taxpayer rights, administrative bill package

Nageshwaran Gopal — Tue, 07 Jul 2026 14:13:08 GMT

The House Ways and Means Committee has approved a package of seven bills aimed at protecting taxpayer rights, improving IRS services, combating fraud, and increasing transparency for nonprofit hospitals. The legislation addresses tax relief for American hostages held abroad, aid for victims of financial fraud, and the adoption of new technology at the IRS.

“The Ways and Means Committee has been systematically identifying weaknesses in how our tax code is administered,” said Ways and Means Committee Chairman Jason Smith (R-MO). “No citizen who has had to endure the horror of being held captive abroad should have their homecoming overshadowed by a massive tax bill from the IRS. Similarly, victims of fraud deserve tax relief when rebuilding their financial lives.”

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

Ways and Means meets on sports tax issues, from NIL to stadium subsidies

Nageshwaran Gopal — Tue, 07 Jul 2026 12:59:48 GMT

The House Ways and Means Committee held a hearing June 30 to review federal tax policy in the multibillion-dollar sports industry. Lawmakers and expert witnesses focused on two issues: the tax challenges facing college athletes with name, image, and likeness (NIL) income, and the public subsidies flowing to professional stadiums.

In his opening statement, Chairman Jason Smith (R-MO) argued that tax-exempt bonds for stadium projects are failing to deliver the local investment and jobs they promise. He cited the Kansas City Chiefs’ decision to leave Missouri for Kansas as an “example of corporate greed triumphing over community benefit,” reflecting a trend in which teams leverage communities for taxpayer dollars.

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

IRS Office of Professional Responsibility issues guidelines on AI use in tax practice

Neil Vicente — Mon, 29 Jun 2026 12:05:18 GMT

Real-world consequences of improper AI use

Citing recent court cases where lawyers were sanctioned for using generative artificial intelligence (GAI), the OPR warns that tax professionals face similar risks. The use of AI has led to filings containing fabricated information, commonly called “hallucinations,” such as fake case citations. Penalties in these cases have included significant financial sanctions, public censure, and mandatory ethics courses.

The alert notes that these issues are not limited to the legal field, highlighting an example where Deloitte Australia reportedly agreed to a partial refund after an AI-produced report for the government contained invented quotes and references to non-existent books.

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

Qualified Opportunity Zone transitional guidance issued

Neil Vicente — Mon, 29 Jun 2026 11:56:06 GMT

Background

The QOZ incentive, originally created by the Tax Cuts and Jobs Act (TCJA), was designed to encourage long-term investments in low-income urban and rural communities designated as QOZs. The program allows investors to defer and potentially reduce tax on capital gains if they invest those gains into a Qualified Opportunity Fund (QOF), which is a vehicle that invests in eligible QOZ property. The rules governing these investments are detailed in IRC § 1400Z-1 and IRC § 1400Z-2.

On July 4, 2025, the OBBB was enacted, which significantly amended these rules. The new notice provides critical transitional guidance to help taxpayers navigate the changes between the prior law and the new provisions enacted by the OBBB.

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

After clean energy credit eligibility ruling, tax pro advises ‘staying the course’

Nageshwaran Gopal — Mon, 22 Jun 2026 16:04:43 GMT

Earlier this month, the U.S. District Court for the District of Columbia vacated Treasury guidance that had limited options for wind and solar developers looking to qualify for federal tax credits before the July deadline. Perkins Coie’s Vivek Chandrasekhar said the ruling provides an alternate pathway to qualify for the credits — for now. However, he anticipates clients will “stay the course” or pursue a dual-path strategy to qualify for the credits.

In the One Big Beautiful Bill Act, congressional Republicans accelerated the timeline for developers to claim a variety of clean energy credits, including those under IRC § 45Y and IRC § 48E. Wind and solar developers, specifically, must begin construction before July 5, 2026, to claim these two types of credits.

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

How the PARITY Act would affect digital asset tax reporting requirements

Neil Vicente — Mon, 15 Jun 2026 14:37:19 GMT

What does the PARITY Act cover?

The legislation addresses six major areas where current law has left both taxpayers and practitioners without reliable guidance.

Wash sale and constructive sale rules

The bill extends the wash sale rules under IRC § 1091 to digital assets, closing what sponsors call the “fake-loss loophole.” Under current law, a taxpayer can sell a digital asset at a loss, immediately repurchase the same asset, and still claim the deduction. Something stock investors can’t do.

If enacted, a 30-day waiting period would apply before a repurchased asset qualifies for loss treatment. The bill also extends constructive sale rules under IRC § 1259 to prevent investors from locking in gains without triggering a taxable event.

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

Building the internal case for consolidated e-invoice management: A guide for U.S. tax teams

Nageshwaran Gopal — Mon, 08 Jun 2026 15:21:29 GMT

For U.S. indirect tax teams managing international e-invoicing obligations, making the case for consolidated architecture requires the right framing.

Highlights

Point-to-point e-invoicing creates hidden costs in maintenance, audit risk, and delayed market expansion.
Hub-based platforms centralize compliance updates through one ERP integration, reducing remediation cycles significantly.
ViDA mandates structured e-invoicing across EU by July 2030, making architectural readiness critical.

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

How to reduce risks with tax provision software

Neil Vicente — Tue, 02 Jun 2026 16:07:00 GMT

Tax departments today operate in an increasingly complex landscape where manual processes create significant exposure to costly errors and compliance failures. When your team relies on spreadsheets and disconnected systems to calculate your corporate tax provision, track changes in tax law, or manage multiple jurisdictions, the margin for error grows exponentially.

Resourcing remains a persistent problem. According to the Thomson Reuters 2025 State of the Corporate Tax Department report, produced in collaboration with the Tax Executives Institute (TEI), 58% of corporate tax departments say they are under-resourced — up from 51% the prior year. And 59% lack confidence in their ability to upgrade technology over the next two years, even as more than half plan to introduce automation or machine learning tools.

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

State Tax information reporting: What changed in 2025 & what to expect for 2026

Nageshwaran Gopal — Mon, 25 May 2026 13:42:40 GMT

Highlights

2025-2026 brings unprecedented state tax reporting changes from OBBBA threshold shifts and Form 1099-DA expansion.
Most states have not yet aligned to OBBBA-driven updates affecting Form 1099-NEC and Form 1099-MISC for TY2026.
Direct state filing requirements expand as CF/SF Program coverage remains inconsistent for new forms.

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

States’ Retreat From Judicial Deference Creates Leverage in Tax Disputes

Neil Vicente — Mon, 18 May 2026 12:26:57 GMT

More than twenty states now require courts to take a fresh look at ambiguous laws rather than deferring to state tax agencies’ regulations and guidance. From Arizona to Florida, Texas, and Wisconsin, this trend creates potential settlement leverage for practitioners in state tax disputes far beyond the courtroom. As Baker McKenzie Partner Niki Ford told Catalyst in a recent Checkpoint News interview, in many states, “including a deference argument in a petition inherently strengthens the taxpayer’s position. Reminding the agency that a reviewing court or tribunal is not required to defer to that agency’s position gives the taxpayer a leg up and they can come at settlement negotiations from a stronger position.” If a measure recently passed by the Georgia legislature becomes law, the state would join the many others requiring “de novo review.”

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

Payroll pulse: Why payroll is a strategic asset in 2026

Nageshwaran Gopal — Mon, 11 May 2026 16:37:32 GMT

Discover how payroll professionals are moving from back-office invisibility to boardroom influence by leveraging workforce data that protects margins and earns executive trust.

Highlights

Payroll is evolving into a strategic asset through AI-powered analytics and boardroom influence.
Metrics like Productive Labor as a Percent of Revenue (PL%R) demonstrate payroll's financial impact.
Global payroll teams must build strong foundations and cross-functional alignment to become strategic partners.

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

Using offshore for form 990

Irene Saengsouvanna — Wed, 06 May 2026 18:58:06 GMT

I wanted to reach out with a quick question regarding our processes for completing form 990 for a client. Specifically, I'm wondering whether we need to fill out form 7216 when utilizing offshore resources for this task. It would be helpful to confirm if this requirement applies in our situation, so we can ensure we're following all necessary protocols.

Thanks in advance for your guidance on this. I look forward to your response.

Stop Being a Hero: Build Systems That Scale Your Tax Practice

Neil Vicente — Mon, 04 May 2026 12:39:28 GMT

The hidden cost of the heroic service model

Clients don’t hire professionals just for technical accuracy. They hire us for confidence, clarity, responsiveness, and trust. But here’s the problem: exceptional service can quietly turn into unmanaged risk if boundaries, scope, and standards slip.

The challenge isn’t choosing between great service and professional responsibility. It’s learning how to deliver both simultaneously. Admittedly, this can be very difficult at times, especially with the focus and additional bandwidth required during filing deadlines.

Most tax professionals fall into what Charles Hummel described as “the tyranny of the urgent”, spending the majority of time on pressing, short-term tasks while critical initiatives like improving processes, developing staff, and expanding advisory services remain perpetually postponed. According to a recent Thomson Reuters Institute survey of 150 tax firm decision-makers, this reactive approach is preventing firms from capitalizing on significant growth opportunities, with 85% reporting an average 13% growth in advisory services last year.

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

Do HIPAA Notices of Privacy Practices Need to Be Updated to Address Part 2 Records?

Neil Vicente — Mon, 04 May 2026 12:37:58 GMT

QUESTION: Our company sponsors a group health plan with several vendors (a third-party administrator, care management vendor, and behavioral health vendor). We understand that HHS has updated one of the model notices of privacy practices (NPPs) and there are new Part 2-related NPP requirements. When did we need to update our HIPAA NPP, are HHS’s model notices required, and what does the new Part 2 enforcement program mean for plan sponsors and business associates?

ANSWER: If your plan (or any of its business associates) creates, receives, maintains, or transmits information that qualifies as Part 2-protected substance use disorder (SUD) patient records, then your plan should treat the Part 2-related NPP revisions as mandatory content requirements that are enforceable as of February 16, 2026. As background, the Part 2 rule refers to 42 CFR Part 2—i.e., the federal regulations governing the confidentiality of SUD patient records. Part 2 primarily applies to SUD treatment programs that are subject to the rule, as well as to “lawful holders” that receive SUD records from a Part 2 program. HIPAA requires certain NPP changes for many HIPAA covered entities—even if they are not Part 2 programs— since many receive SUD records from Part 2 programs for treatment, care coordination, and payment purposes. Key points for plan sponsors, group health plans, and business associates include—

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

DOL Technical Release Addresses Proxy Advisors and ERISA Fiduciary Duties

Nageshwaran Gopal — Mon, 27 Apr 2026 13:29:57 GMT

The DOL has issued a technical release regarding the use of proxy advisory services in connection with ERISA plan investments. The guidance addresses two issues: the applicability of ERISA’s fiduciary rules to proxy advisors and ERISA preemption of state laws relating to proxy advisors. As background, the fiduciary duty to manage plan assets includes the exercise of proxy voting and other shareholder rights, unless those rights are passed through to participants and beneficiaries under the plan. Here are highlights of the guidance:

ERISA Fiduciary Rules. The guidance explains that proxy voting and other rights relating to shares held by ERISA plans are plan assets subject to ERISA’s fiduciary rules. To the extent that a proxy advisor exercises any authority or control over the exercise of such shareholder rights, the advisor is a fiduciary under ERISA’s functional test. Advisors may also be fiduciaries as a result of providing investment advice relating to plan property for a fee—whether the advice is generalized or specific to the transaction or client. The DOL opines that proxy services will likely satisfy the five-part test for fiduciary status, although it acknowledges that the ultimate analysis depends on facts and circumstances. It also cautions that disclaimers of fiduciary status are not determinative.
Preemption of State Laws. According to the guidance, in recent years states have implemented various laws governing securities recommendations and investment advice, such as requiring disclosure when an advisor’s recommendation takes into account nonfinancial considerations. The DOL indicates that this type of disclosure requirement would be “nonconvergent” with ERISA. Because ERISA prohibits the consideration of nonfinancial factors, an advisor’s fiduciary duties would preclude it from providing plan-related advice that would trigger the disclosure requirement. But the DOL explains that whether any particular state law is preempted will depend on the specifics of the law.

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

Ask an expert: Simplifying the client portal for tax firms

Neil Vicente — Mon, 13 Apr 2026 12:26:01 GMT

Andrew VanVladricken gives his take on the state of client collaboration and explains how tax firms can improve their service

Your tax workflow is only as successful as your clients allow it to be. Late signatures and document submissions can derail busy season before it even starts. But that doesn’t mean it’s out of your control. That’s why choosing the right client portal for tax firms has become critical to improving engagement, reducing friction, and keeping work moving.

We sat down with Andrew VanVladricken, Director of Product Management at Thomson Reuters, to discuss how modern client collaboration tools like SafeSend make tax season easier for professionals and clients.

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

Beyond the executive order maze: How modern trade teams navigate tariff classification complexity to drive strategic value

Neil Vicente — Mon, 06 Apr 2026 12:35:55 GMT

Here’s the paradox facing every trade professional today: the same regulatory complexity that threatens to overwhelm your team also represents your greatest opportunity for strategic influence. The question isn’t whether complexity will continue — it’s whether your organization will use it as a competitive advantage.

It used to be simple: look up the product, check the MFN rate, done. Now trade professionals navigate 5-6 executive orders with double negatives and Chapter 99 exceptions — and that’s just the beginning.

This transformation from straightforward product classification to navigating regulatory complexity represents the reality for global trade professionals. What once required a single harmonized tariff schedule lookup now demands multi-layered analysis across executive orders, each with its own interpretation challenges and compliance requirements.

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

The point-to-point trap: How fragmented e-invoicing stalls global growth

Neil Vicente — Mon, 06 Apr 2026 12:19:11 GMT

Every point-to-point connection involves hidden technical debt:

Digital signatures: Each country has different requirements for digital certificates. Some require government-issued certificates. Others accept third-party providers. A few require both. Managing these certificates across dozens of connections means tracking hundreds of expiration dates, renewal processes, and vendor dependencies.

Custom XML/UBL mappings: No two systems use identical data structures. Every integration requires custom field mapping, translating your ERP’s data model into the format each local system expects. Build one mapping wrong, and invoices fail validation. Update your ERP, and every mapping must be rebuilt.

Local archiving laws: Some jurisdictions require seven years of retention. Others require ten. Some mandate local storage. Others accept cloud storage with specific security requirements. Each connection must handle archiving independently, creating multiple data repositories that must be maintained, secured, and audited separately.

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