Comprehensive coverage of U.S. Federal and State tax laws. Professional insights to help you navigate complex tax regulations and compliance requirements.
Do I owe tax when I’m paid to care for a family member? Usually, yes — the caregiver tax picture turns on whether the caregiver is an employee of the family or self-employed, whether the money qualifies as a Medicaid waiver payment, and whether the family has to file Schedule H and issue a Form…
Does the Section 351 ETF conversion still work after Rev. Rul. 2026-20? Not the way it has been sold. The IRS now treats a planned transfer of securities to a new ETF followed by an authorized-participant redemption of those same securities as a single taxable exchange, not a tax-free diversification. The Section 351 ETF conversion…
If my Korean parent only wants to watch the US market, is a representative office enough — or do I already need a branch? A US representative office that limits itself to market research, information gathering, and liaison work typically falls outside the US “trade or business” definition under IRC §864(b), so it files no…
Will individual fraud victims be able to deduct their losses again? On September 16, 2026, the House passed HR 9500 by a 408–17 vote. If the Senate agrees and the President signs, the fraud victims tax deduction is restored outside federally declared disasters, the retirement-account early-withdrawal penalty is waived in scam cases, and victims gain…
Does the US-Korea tax treaty actually reduce the 30% default withholding on a software royalty paid to a Korean licensor? Yes — a US payer must generally withhold 30% on a US-source royalty, but the Korea tax treaty royalty article can cut the rate to 10% or 15% depending on the royalty type, provided the…
How does the clean fuel credit work after the OBBBA? The clean fuel credit under § 45Z still rewards low-emissions transportation fuel produced in the United States, but IRS Notice 2026-53 reshapes it for 2026. ILUC emissions are out. Non-North American feedstocks are out. Animal manure gets its own emissions rate. Here is what to…
What is the Education Freedom Tax Credit, and how does it work? The Education Freedom Tax Credit is a new federal nonrefundable credit under Internal Revenue Code Section 25F, worth up to $1,700 for individual cash contributions to state-listed Scholarship Granting Organizations. It begins January 1, 2027 and only applies in states that have elected…
What can I do in the new IRS app? On Sept. 25, 2026 the IRS retired IRS2Go and launched a new IRS app that connects to selected Individual Online Account features — refunds, balances, payments, notices, transcripts, and your Identity Protection PIN — from your phone. For more than a decade the mobile face of…
What is the Kwong tax refund case, and does it extend the two-year deadline for COVID-era refund claims? The U.S. Court of Federal Claims held that 26 U.S.C. § 7508A(d) automatically postponed the § 6532(a)(1) refund-suit deadline for the entire COVID-19 disaster period. The government has appealed to the Federal Circuit and argues the postponement…
What are the new IRS per diem rates for 2026–2027? Notice 2026-60 sets the high-low per diem rates at $329 for high-cost localities and $230 elsewhere in CONUS, effective October 1, 2026. Transportation-industry M&IE is $80 CONUS and $86 OCONUS, and the incidental-only rate stays at $5 per day. Every October, a wave of expense-policy…
This international tax update covers three moves that reach owners of US businesses with any cross-border footprint. Australia has released an exposure draft that would reshape its Research and Development Tax Incentive from mid-2028; Hong Kong has unveiled tax-related measures in the 2026 Policy Address; and the OECD has published its 2026 report on tax…
This state tax update covers three moves that reach owners well beyond the three states in the headline. New Jersey has paused new letter ruling requests for 60 days beginning October 1, which changes how you get written guidance in a state that many multi-state operators rely on. California enacted a law that puts the…
This federal tax update covers three developments that reach small and mid-sized business owners directly. Congress moved a bipartisan taxpayer service package out of committee, Treasury opened a comment window on the renewed opportunity zone rules under the OBBBA, and the Joint Committee on Taxation corrected four points in its own OBBBA technical explanation —…
Do I get more time to replace drought-sold livestock under the 2026 IRS notice? If the county where you sold, or any contiguous county, is on the Notice 2026-54 Appendix, yes. The IRS treats the 12-month period ending August 31, 2026 as not a drought-free year, so the section 1033(e) four-year replacement period is extended…
How much U.S. corporate tax will my company actually pay in 2026? A U.S. C corporation pays a flat 21% federal corporate income tax under Internal Revenue Code §11(b), plus a state corporate income tax that ranges from 0% (Wyoming, Nevada, South Dakota) up to about 11.5% (New Jersey, at the top surtax bracket) depending…
Is the Tribal Tax Credit scam real? Yes — the fake credit being pitched is real, but the credit itself is not. In IR-2026-112, the IRS said the Tribal Tax Credit scam involves promoters selling credits that do not exist under federal law, and claiming one on a return is a false claim exposing you…
California’s Franchise Tax Board wrapped up summer with two Tax News issues carrying real, dollars-and-cents implications for business owners. New budget trailer bills rewrote several business credit and minimum-tax rules, a fresh application window opened for the $350 million California Competes Tax Credit, and FTB locked in new interest rates that take effect January 1,…
This week’s international tax update tracks five developments that reach across borders and land right back on US balance sheets: a finalized Australian ruling on cross-border software royalty withholding, tighter global rules for digital-platform sellers and intragroup service pricing, new US Treasury rules for foreign-subsidiary income inclusions, and an extended Thai VAT rate. None of…
State and local tax rules keep shifting for businesses that sell across state lines, and this week brings several changes worth watching. California is preparing to tax software and digital products for the first time, Philadelphia is changing how it sources local sales tax, and a landmark court ruling in Maryland could open the door…
Congress and federal agencies moved on several fronts this week that land directly on a business owner’s desk, not just a tax preparer’s. The IRS updated how businesses account for research costs, Treasury finalized a new rule on beneficial ownership reporting, and the administration escalated tariffs on Canadian goods ranging from auto parts to dairy…
Do my Korean bank accounts really need to be reported on FBAR? Yes — any U.S. person whose foreign financial accounts (including Toss, KakaoBank, KEB Hana, Kookmin, or a Korean brokerage) together exceed $10,000 at any point during the calendar year must file FinCEN Form 114. The $10,000 test is measured across all accounts combined,…
Does California’s digital products sales tax apply to my software business? Starting January 1, 2027, prewritten software — including Software-as-a-Service and remote-access licenses — is a taxable digital product under California’s new digital products sales tax rule enacted by Senate Bill 122. Custom software and several digital-media categories stay outside the rule. A short email…
Should our corporation apply to the IRS CAP program for 2027? The IRS opened the 2027 application window in September 2026 with an Oct. 30, 2026 deadline. The IRS CAP program resolves material tax issues in real time before the return is filed — but only for corporations that clear a strict eligibility bar. If…
Are influencer tax rules any different from regular tax rules? No. The Tax Court’s first ruling involving a social-media creator, Sami v. Commissioner, applied the same ordinary-and-necessary business expense standard used for every other business. What actually decides an influencer tax audit is substantiation, business purpose, and whether the activity is a real trade or…
Can you deduct car loan interest in 2025? Yes, up to $10,000 per return per year, for tax years 2025 through 2028. The car loan interest deduction under OBBBA §70203 covers loans incurred after December 31, 2024 that are secured by a first lien on a U.S.-assembled passenger vehicle you bought for personal use. Final…
Which year-end tax planning moves actually shift a high earner’s 2026 tax bill? The ones the Internal Revenue Code closes at midnight on December 31 — retirement contributions coded to a payroll cycle, wash-sale-safe loss harvests, exercised stock options, direct-to-charity IRA distributions, and completed annual-exclusion gifts. Year-end tax planning for high earners is less about…
Are ICE Endex futures Section 1256 contracts now? Yes — for contracts entered into on or after September 1, 2026. In Rev. Rul. 2026-16, the IRS determined that ICE Endex, a Netherlands regulated exchange, is a qualified board or exchange under § 1256(g)(7)(C), so its futures and futures options get mark-to-market and 60/40 capital-gain treatment…
Does the IRS finally have an automatic-consent path for OBBBA R&E and residential construction changes? Yes. IRS Rev. Proc. 2026-32 opens the automatic OBBBA method change for § 174, § 174A, and § 460(e), waives the usual eligibility bars through 2027, and gives one transition window that closes November 15, 2026. On September 4, 2026,…
Will private schools lose their tax-exempt status for racial-preference policies? Under Treasury and IRS proposed regulations issued September 3, 2026, a private school that discriminates on the basis of race, color, or national or ethnic origin would not qualify for §501(c)(3) recognition. This post explains what changes to private school tax exempt status, when, and…
What is the IRS Tax Compliance Report? It is a digitally authenticated PDF, available inside the IRS Individual Online Account, that confirms your federal filing and payment status without exposing your income or return line items. The tax compliance report is designed to be shared with lenders, employers, and government agencies that need proof of…
