Tax Research & Guidance - Recent Threads

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.

Tax Pro Delves Into Qualified Production Property Guidance

Nageshwaran Gopal — Mon, 30 Mar 2026 14:58:46 GMT

The IRS’ recent guidance on the One Big Beautiful Bill Act’s (OBBB) depreciation deduction for qualified production property provides “at least some version of an answer” to most key questions, according to Plante Moran partner Stephen Eckert. However, he highlighted one area where clients might be missing an opportunity to take advantage of the new deduction.

Qualified Production Property Deduction Basics

New IRC § 168(n) allows taxpayers to take a special 100% first‑year depreciation deduction for the qualifying portion of certain new or substantially improved nonresidential real property. To claim the deduction, taxpayers must begin construction after January 19, 2025, and before January 1, 2029, and place the property in service, generally, after July 4, 2025, and before January 1, 2031.

In addition, the property must be used as an integral part of a qualified domestic manufacturing, production, or refining activity. Portions of property that are used for non-production functions, such as administration, parking, sales, and research, must be excluded when claiming the deduction.

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

Navigating Clean Energy Material Assistance Restrictions, New Guidance

Neil Vicente — Mon, 23 Mar 2026 12:12:00 GMT

‘Pass or Fail’

The PFE restrictions were enacted amid bipartisan concerns that adversarial nations — specifically China, Russia, Iran, and North Korea — were benefiting from U.S. tax incentives. This led to what Ross Reiter, a partner in Deloitte’s Global Investment & Innovation Incentive (Gi3) Services practice, described as a strict “pass or fail” test.

There are two primary ways a project can be disqualified under the PFE rules. The first is if the taxpayer claiming the credit is itself a PFE, either by being a “specified foreign entity” or a “foreign-influenced entity” through ownership, debt, or effective control tests. The second, and the main focus of the new guidance, is if the project includes “material assistance” from a PFE in the construction of facilities or the production of components.

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

What to know about Schedule 1-A

Nageshwaran Gopal — Tue, 17 Mar 2026 11:19:27 GMT

Answers to frequently asked questions about the new 1040 attachment.

Highlights

Schedule 1-A is a new IRS form that is currently used for claiming four specific deductions from the OBBBA.
Taxpayers can use Schedule 1-A whether they itemize or take the standard deduction.
Common mistakes include misreporting tips and confusing total overtime pay with the premium portion.

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

CPA firm automation case study: How one practice simplified 1040 tax prep

Nageshwaran Gopal — Tue, 17 Mar 2026 11:13:42 GMT

The challenge: Time-consuming tax preparation

Like many accounting firms, Madsen, O’Meara and Company spent endless hours on manual tax preparation. During busy season, the high volume of work combined with limited staff handicapped their ability to take on strategic engagements.

“We were so pressed for time to try to get the work out the door at any price. There just was not enough hours in the day,” says Edgar Madsen.

These bottlenecks revealed a clear need for CPA firm automation. So, they integrated SurePrep as an extension of Thomson Reuters UltraTax CS to test the waters before busy season hit. The team adopted 1040SCAN and SPbinder to scan and index workpapers for easy organization and streamline review.

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

The 150-day clock is ticking: How trade professionals can turn tariff uncertainty into strategic advantage

Nageshwaran Gopal — Tue, 17 Mar 2026 11:12:12 GMT

Highlights

Section 122 tariffs expire July 24, 2026, creating a strategic 150-day planning window.
68% of trade professionals now prioritize supply chain resilience over day-to-day optimization.
Organizations with integrated trade systems can model multiple tariff scenarios for competitive advantage.

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

Tax Pros Discuss OBBB State Conformity Challenges

Neil Vicente — Mon, 09 Mar 2026 14:51:17 GMT

As states scramble to adjust their laws after major changes to the federal tax code under the One Big Beautiful Bill Act (OBBB), experts shared what they’re watching on the business tax front.

Plante Moran’s David DeCew told Checkpoint that state conformity to the federal tax code after the OBBB is “continually evolving.” He stressed that “it’s important to keep thinking about it, knowing that the decision made last year or the treatment last year may not be the same as what’s required next year.”

“As states see the budgetary impact over the next few years, there may be additional decoupling provisions,” DeCew added.

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

Calculating vehicle depreciation

Neil Vicente — Mon, 09 Mar 2026 14:46:42 GMT

Determine the appropriate tax depreciation for cars used for business.

Running a successful small business is hard work and expensive. Every penny counts, so finding ways to help your clients leverage every tax deduction they are entitled to is a win for your clients and your firm.

One tax saving that some business clients may not be familiar with is vehicle tax depreciation. If your client owns a vehicle, or several vehicles, that they use for business, it is likely they will qualify for deductions on their taxes.

Helping your clients better understand vehicle tax depreciation and the savings they may be entitled to will help strengthen your client relationships and your role as their trusted advisor.

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

Dems Push to Overturn IRS Rule on Solar, Wind Tax Credits

Nageshwaran Gopal — Tue, 03 Mar 2026 15:46:11 GMT

A group of Senate Democrats introduced a resolution to disapprove of IRS guidance that changes the requirements for wind and solar energy companies to claim clean energy tax credits.

In August 2025, the IRS issued Notice 2025-42, which addresses beginning-of-construction requirements applicable to wind and solar facilities for the IRC § 45Y Clean Electricity Production Credit and IRC § 48E Clean Electricity Investment Credit. S.J.Res. 107, introduced by Senator Catherine Cortez Masto (D-NV), Senate Minority Leader Chuck Schumer (D-NY), and Senate Finance Committee Ranking Member Ron Wyden (D-OR), would overturn this August guidance.

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

The cost of getting it wrong: Why precision in tax filings matters to your bottom line

Nageshwaran Gopal — Tue, 03 Mar 2026 15:45:02 GMT

The hidden cost of tax errors—and how technology helps prevent them

Highlights

Staffing shortages, rising complexity, and manual processes are driving an increase in tax preparation errors.
Technology can significantly reduce manual data entry, improve verification accuracy, and flag issues before filing.
Improved precision improves profitability by reducing rework, avoiding penalties, and strengthening client relationships.

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

Additional Interim CAMT Guidance Tweaks AFSI Calculations

Neil Vicente — Mon, 23 Feb 2026 11:51:16 GMT

The IRS has issued additional interim guidance on the corporate alternative minimum tax (CAMT) that provides several new or modified adjustments to adjusted financial statement income (AFSI) for certain capitalized costs, troubled companies, and corporate transactions. (Notice 2026-7, 2/18/2026)

CAMT Background and Guidance Timeline

The CAMT, enacted as part of the Inflation Reduction Act (P.L. 117-169), imposes a 15% minimum tax on the AFSI of certain large corporations. Since its enactment, the Treasury Department and the IRS have been working to clarify the complex rules, issuing comprehensive proposed regs (REG-112129-23) in September 2024.

Following feedback on the complexity of those proposed rules, the IRS has issued a series of notices providing interim guidance. Notice 2025-27 introduced an optional simplified method for determining applicable corporation status, allowing many corporations to more easily determine if they are subject to the CAMT.\

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

Taxpayers Must Be More Diligent With Downsized IRS, Says Expert

Nageshwaran Gopal — Mon, 16 Feb 2026 14:22:25 GMT

An Agency in Flux

The IRS is navigating a period of significant upheaval, with its workforce reduced from approximately 100,000 in 2025 to around 75,000 staff currently. The reductions include a 30% cut to audit staff and a 20% cut in customer service representatives, leaving remaining employees “working double time,” Slipman said.

Beyond the staffing cuts, the agency has gone through a number of leadership changes in the last year. Slipman explained that at the IRS, “every time there’s a sea change in terms of new leadership, the question is, ‘Okay, what’s the enforcement policy?'” He described the agency’s enforcement policy as top-down. But with all the leadership changes in 2025, “there’s just kind of been a lack of direction,” he added.

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

Minnesota Issues Chart Showing Impacts of One Big Beautiful Bill Act on Minnesota Income Taxes

Nageshwaran Gopal — Mon, 16 Feb 2026 14:21:29 GMT

Minnesota Nonconformity with Federal Law Changes

Under current law, definitions used in determining Minnesota taxable income are based on the IRC, as amended through May 1, 2023. Since that date, Congress enacted the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1). Taxpayers may need to make an adjustment to income on their Minnesota return because Minnesota has not adopted the federal changes relating to H.R. 1. Taxpayers can use the Department’s Nonconformity Chart to help determine if adjustments are needed.

The chart lists each federal tax provision, the affected IRC sections, whether Minnesota tax law will be impacted, the tax years affected, and the relevant Minnesota income tax forms. Many provisions will not impact Minnesota, but several will, affecting individuals, estates/trusts, partnerships, corporations, and S corporations for tax years 2022–2027. The chart highlights changes related to deductions, credits, business expensing, charitable contributions, education, energy, and other areas, specifying which Minnesota tax form series (M1, M2, M3, M4, M8) are impacted.

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

Why the Thomson Reuters, Anthropic, AWS, Google, and OpenAI alliance matters for tax professionals

Neil Vicente — Mon, 09 Feb 2026 13:22:28 GMT

Why trust is crucial in the tax profession

Joel Hron, Chief Technology Officer at Thomson Reuters, captured the essence of the challenge facing the profession: “Our customers do not use AI for experimentation. They use it to make decisions they must be able to explain, defend, and stand behind. As AI systems become more agentic, trust stops being a policy question and becomes an engineering requirement.”

This distinction is particularly relevant for the tax profession. Consider a preparer using AI to research a complex inquiry related to tax law. AI can be used to reason across statutes, regulatory guidance, and material requiring legal interpretation, dramatically reducing research time.

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

How to build a business case for indirect tax process automation

Neil Vicente — Mon, 09 Feb 2026 13:21:13 GMT

In a recent Thomson Reuters webinar, tax automation experts tackled a critical question: How do you build a compelling business case for indirect tax automation that gets stakeholder buy-in?

With compliance complexity increasing and AI capabilities advancing, the conversation couldn’t be more timely.

The panel featured Andrew Zwig (Director, Client Partners), Jason Sisian (Senior Solution Consultant), and Logan Tyler (Senior Solution Consultant) from Thomson Reuters. Here are their key insights.

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

How to determine ROI quantification for tax technology

Nageshwaran Gopal — Mon, 02 Feb 2026 13:47:00 GMT

Unlock the true financial impact of tax automation with practical, measurable methods for accurate ROI calculation.

Highlights

Firms that invest in cutting edge automation see better efficiency, accuracy, and scalability.
Consistent tracking of ROI metrics strengthens ROI accuracy.
SurePrep significantly cuts down on preparation and review time.

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

AI prompt starter pack for the One Big Beautiful Bill Act

Neil Vicente — Mon, 26 Jan 2026 11:36:38 GMT

The One Big Beautiful Bill Act (OBBBA) arrived quickly, passed by July 4th, 2025, bringing sweeping tax changes that affect virtually every client you serve. From the new $6,000 senior deduction to 100% bonus depreciation for qualified production property, tax professionals face a massive challenge: How do you efficiently analyze dozens of provisions across hundreds of unique client scenarios?

With qualified tax professionals in short supply and review workloads at all-time highs, traditional research methods don’t scale. AI-powered research isn’t just about speed. It’s about maintaining firm capacity when hiring isn’t an option. With the right AI prompt starter pack, you can transform hours of manual research into minutes of strategic analysis. But generic prompts produce generic answers. This guide provides ready-to-use AI prompt starters designed specifically for OBBBA tax research.

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