Tax Research & Guidance - Recent Threads

Proposed rules clarify farmland sale tax installment election

Nageshwaran Gopal — Mon, 05 Oct 2026 19:37:19 GMT

New installment election for farmland sales

These are the first proposed rules under § 1062, which was enacted as part of the One Big Beautiful Bill Act, P.L. 119-21. Under the provision, eligible taxpayers can spread the tax attributable to gain from qualifying farmland sales over four years.

A taxpayer who makes the election pays 25% of the applicable net tax liability — the additional tax the gain generates — in each of four equal annual installments. That first installment is generally due on the regular due date of the taxpayer’s federal income tax return, without regard to extensions, for the year of the sale, and each later installment is due on that same date in the following years.

Taxpayers must make the election by the return due date, including extensions. Once made, the election can be revoked only by paying the full remaining unpaid liability.

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

Former official, tax pros see promise in IRS reform bill but passage remains unclear

Nageshwaran Gopal — Mon, 05 Oct 2026 19:36:05 GMT

Background on the bill

Introduced February 26 by Senate Finance Committee Chair Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR), the TAS Act combines dozens of proposals from National Taxpayer Advocate Erin Collins with other tax administration bills. Spanning ten titles, it addresses digitization, expanded online accounts, judicial review, preparer penalties, and targeted relief for Americans abroad and former hostages.

The measure cleared the Finance Committee on a 26-1 vote and has been reported to the full Senate, while the House has advanced individual pieces separately.

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

Experts explore latest federal guidance, state tax divergence

Neil Vicente — Mon, 28 Sep 2026 16:32:48 GMT

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.

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

Missing inflation month poses little risk to 2027 tax figures, experts assure

Neil Vicente — Mon, 28 Sep 2026 16:32:00 GMT

A gap in federal inflation data caused by the 2025 government shutdown has raised questions about how the IRS will set 2027 tax figures, but tax professionals and analysts told Checkpoint the missing month should matter little for most taxpayers.

Each year, the IRS adjusts dozens of tax parameters, including bracket thresholds, the standard deduction, and a range of credits and phaseouts, to keep pace with inflation. Under IRC § 1(f), those adjustments are generally tied to the average chained Consumer Price Index for All Urban Consumers, or C-CPI-U, for the 12-month period ending August 31.

The agency would ordinarily have a full 12-month series of inflation numbers, but the shutdown left the Bureau of Labor Statistics (BLS) unable to publish October 2025 data. BLS stated data it could not collect during the lapse in appropriations cannot be recovered after the fact, so affected figures are permanently suppressed from publication.

Checkpoint has published 2027 projections using the 11 available months. The IRS did not respond to Checkpoint’s request for comment on how it will calculate the adjustments.

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

IRS Clarifies SECURE and SECURE 2.0 Plan Amendment Deadlines for Required and Discretionary Provisions

Neil Vicente — Mon, 28 Sep 2026 16:24:39 GMT

The IRS has issued guidance clarifying whether plan amendments that implement provisions of the SECURE Act and the SECURE 2.0 Act must be adopted by the deadlines set forth in Notice 2024-2 (generally, December 31, 2026) or by the deadlines set forth in an applicable Required Amendments List (RA List). The answer depends on whether the amendment is required or discretionary, as follows:

Required Amendments. In general, the deadline for required amendments is the end of the remedial amendment period, which is the last day of the second calendar year following the calendar year in which the amendment is adopted or effective (whichever is later) or, for a disqualifying provision arising from a change in qualification requirements, the last day of the second calendar year that begins after the issuance of the RA List on which the change appears. The guidance explains that provisions that cannot reasonably be reflected in plan language without additional guidance will not be included on an RA List until final regulations are issued and applicable, and specifies that it is reasonable to assume that a change not listed on the RA List for the year the change first applies will appear on a future RA List. For example, the SECURE 2.0 Act Roth catch-up requirements are expected to appear on the 2027 RA List, making the amendment deadline generally December 31, 2029. Other SECURE Act and SECURE 2.0 Act provisions expected to appear on future RA Lists, following issuance of final regulations, are automatic enrollment requirements, long-term part-time employee requirements, and required minimum distribution requirements that have not already appeared on an RA List.

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

Multistate Monitor — As states decouple from OBBB, expert explains how to address now-incorrect tax estimates

Nageshwaran Gopal — Tue, 15 Sep 2026 10:13:12 GMT

Retroactive tax law changes pose challenges

The federal OBBB included retroactive tax changes for the 2025 tax year, including those affecting bonus depreciation under IRC § 168(k), research and experimental expenditures under IRC § 174, and the business interest limitation under IRC § 163(j). While these changes were made at the federal level, they can serve as the starting point for state tax.

Amid budget concerns over the new OBBB provisions, many states decoupled or adjusted their conformity to the federal Tax Code this year. Over 20 states have decoupled or only partially conformed to the OBBB, Machemer said during an August 26 EY webinar. However, those changes often occurred after taxpayers already estimated their tax liability.

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

Tax professional skills AI cannot replace

Neil Vicente — Mon, 07 Sep 2026 12:59:23 GMT

Will AI replace tax professionals, or just the parts of the job that were never the point?

The more useful framing isn’t job replacement, but rather skill redistribution. The Thomson Reuters Institute’s research on the profession describes 2026 as an inflection point: compliance work is becoming commoditized by technology, pushing both corporate tax departments and outside tax firms toward strategic advisory roles.

In practice, that means firms earn their fee less by filling out forms and more by understanding a client’s financial picture: keeping them compliant with complex rulings, identifying savings opportunities, and helping them make informed business decisions.

A firm built on volume (hundreds of similar returns, thin margins, seasonal crunch) was optimized for a world where the bottleneck was labor hours on mechanical tasks. Remove that bottleneck and volume stops being the advantage. Depth replaces it: fewer clients, chosen deliberately, engaged continuously rather than once a year.

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

The indirect tax lifecycle for omnichannel retailers

Nageshwaran Gopal — Mon, 31 Aug 2026 20:05:50 GMT

Is your indirect tax architecture creating hidden compliance risk? For omnichannel retailers, indirect tax compliance is not a single problem. It is five connected problems — tax determination, e-invoicing validation, reconciliation, compliance filing, and audit defense. Solve them separately, and the gaps become the liability.

In this white paper, you'll learn:

Why fragmented point solutions compound errors at every hand off
How a single incorrect tax rate during peak trading can cascade into lost revenue, reconciliation gaps, and days of manual remediation
What the connected indirect tax lifecycle looks like across determination, e-invoicing, reconciliation, and filing

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

Group urges IRS to end improper taxpayer interview demands

Nageshwaran Gopal — Mon, 31 Aug 2026 19:52:55 GMT

The Texas Society of CPAs (TXCPA) is urging the IRS to stop its agents from requiring represented taxpayers to personally attend examination interviews. In an August 19 letter to agency leaders, the group said the practice violates taxpayer rights established under the federal Tax Code.

The TXCPA’s Federal Tax Policy Committee Chair James A. Smith detailed what TXCPA members report as a “steady increase” in revenue agents demanding that taxpayers be physically present for interviews in civil examinations, even when the taxpayer has a valid Form 2848, Power of Attorney, on file.

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

8th Circuit denies equitable tolling after law firm’s SCOTUS win

Nageshwaran Gopal — Mon, 17 Aug 2026 13:39:04 GMT

No diligence, no extraordinary circumstance

In a per curiam opinion, the 8th Circuit reviewed the Tax Court’s equitable-tolling ruling de novo and its underlying factual findings for clear error. A litigant seeking equitable tolling must show both that it diligently pursued its rights and that an extraordinary circumstance stood in its way. The court held that Boechler, P.C. (BPC) failed on both counts.

On diligence, the court agreed with the Tax Court that “the record is silent as to whether anyone diligently pursued [BPC’s] rights.” Jeanette Boechler, the firm’s sole attorney, calculated the filing deadline herself and got it wrong, even though BPC had hired an outside attorney to file the petition.

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

How CoCounsel helps A&G consultants deliver research-backed client guidance

Neil Vicente — Mon, 10 Aug 2026 12:20:41 GMT

Agler & Gaeddert Chartered, doing business as A&G Consultants, is a certified public accounting firm serving individuals and businesses from offices in Emporia and Ottawa, Kansas, providing tax, accounting, and advisory services.

A&G Consultants adopted Thomson Reuters CoCounsel to solve a growing gap between ambition and capacity across its Emporia and Ottawa offices. After previewing CoCounsel at Synergy and running a live demo during renewal season, the partners purchased four licenses at the beginning of the year. Since then, the team reports markedly faster research cycles and the ability to generate client-ready memos and letters with authoritative citations they can share to reinforce trust. The firm plans to expand usage through training and additional licenses as adoption grows.

The firm wanted to grow, but uneven processes across two locations and tool sprawl slowed progress and strained collaboration. "We wanted to go bigger." After years on Checkpoint, the team had spent the last three years on a different research product; license renewal prompted a reassessment. Staff needed a faster, more reliable way to research complex questions and produce understandable, professional memos and client letters — without jumping among "tons of different places" to piece together answers. The partners also sought a solution they could trust, with citations they could show to clients who like to "double check everything," preserving the human touch even as more tasks became automated.

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

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.