Federal tax developments week of October 11, 2026
What changed this week
| Development | Who it affects |
|---|---|
| Senate passes the Taxpayer Assistance and Service Act (H.R. 5349) | Any business owner who deals with the IRS, pays a preparer, employs US citizens living abroad, or might one day use the whistleblower program. |
| Treasury rolls out Trump Account auto-enrollment and employer contribution rules | Employers evaluating 2027 benefits, business owners with eligible-age children, and HR teams that administer dependent benefits. |
| New Russia-Iran sanctions law adds a 500% tariff and expands presidential tariff authority (H.R. 5334) | Importers with any Russian-origin inputs, resellers whose supply chain runs through major Russian-oil importing countries, and schools or households deducting classroom supplies for pre-K teachers. |
| Treasury and IRS release the 2026-2027 Priority Guidance Plan and obsolete 71 items | Any business whose compliance or planning depends on prior revenue rulings, revenue procedures, or notices, especially those with OBBBA-touching questions. |
Senate passes the Taxpayer Assistance and Service Act (H.R. 5349)
The Senate unanimously approved the Taxpayer Assistance and Service Act, a 10-title bipartisan package of more than 60 taxpayer-administration provisions. The bill would require more digitization of returns and correspondence, expand online account capabilities, improve refund tracking, publish IRS backlog and wait-time dashboards, strengthen the whistleblower program, tighten preparer oversight, and change rules affecting Americans living abroad. It was passed as a substitute amendment to the House-passed Tax Court Improvement Act and now returns to the House, which is expected to pick it up during the lame-duck session after the November midterm elections.
Who it affects: Any business owner who deals with the IRS, pays a preparer, employs US citizens living abroad, or might one day use the whistleblower program.
What to do
Flag the small-business title and preparer-oversight title to your tax advisor so you know which provisions would change your workflow if the House clears the Senate version without major edits.
Primary source: H.R. 5349 bill page, Congress.gov
Treasury rolls out Trump Account auto-enrollment and employer contribution rules
Temporary and proposed regulations under section 530A set up automatic enrollment for eligible children for whom a Trump Account election has not yet been made and build the master group trust that lets individual accounts hold eligible investments without disclosing taxpayer information. Annual non-deductible cash contributions are capped at $5,000 (indexed) before the beneficiary turns 18, and there is a separate tax-preferred employer contribution of up to $2,500 (indexed) per employee or the employee’s dependent. A pilot program adds a one-time $1,000 government contribution for children born after December 31, 2024, and before January 1, 2029. Form 4547, Trump Account Election(s), is the taxpayer form for opening an account.
Who it affects: Employers evaluating 2027 benefits, business owners with eligible-age children, and HR teams that administer dependent benefits.
What to do
Model the $2,500-per-employee employer contribution as part of your 2027 benefits review, and have Form 4547 handy for owner-families who want to open accounts for their own eligible children.
Primary source: About Form 4547, Trump Account Election(s), IRS
New Russia-Iran sanctions law adds a 500% tariff and expands presidential tariff authority (H.R. 5334)
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed into law on September 18. It mandates a 500% tariff on Russian imports and authorizes tariffs of up to 100% on the five countries that import the most Russian crude oil or natural gas, or that most facilitate the evasion of Russian oil sanctions, with a limited exemption for countries that import less than 15% of Russia’s natural gas exports and are taking significant steps to reduce them. The US Trade Representative must reassess the top-five lists every 180 days. The same bill also broadens the above-the-line educator expense deduction to cover certain early childhood educators, including pre-kindergarten teachers.
Who it affects: Importers with any Russian-origin inputs, resellers whose supply chain runs through major Russian-oil importing countries, and schools or households deducting classroom supplies for pre-K teachers.
What to do
Have your customs broker rerun country-of-origin and HTS classifications on imports that might touch Russia, and track the first 180-day USTR reassessment for the five-country tariff list before placing long-dated purchase orders.
Primary source: H.R. 5334 bill page, Congress.gov
Treasury and IRS release the 2026-2027 Priority Guidance Plan and obsolete 71 items
The 2026-2027 Priority Guidance Plan lists 121 guidance projects for October 1, 2026 through September 30, 2027. Priorities include implementation of the One Big Beautiful Bill Act (P.L. 119-21), continued deregulation and burden reduction, tax-exempt organizations, tribal tax issues, and digital assets. Separately, Notice 2026-58 identifies and obsoletes 71 items of published guidance, including revenue rulings, revenue procedures, notices, and announcements that previously appeared in the Internal Revenue Bulletin.
Who it affects: Any business whose compliance or planning depends on prior revenue rulings, revenue procedures, or notices, especially those with OBBBA-touching questions.
What to do
Cross-check the plan against the open OBBBA questions your advisor is tracking so you know which answers are coming this plan year, and stop citing or relying on any item on the Notice 2026-58 obsolescence list.
Primary source: 2026-2027 Priority Guidance Plan (initial version), IRS Office of Chief Counsel
What this means for your business
- Congress is wrapping up a quiet pre-recess with real tax administration changes queued for the lame-duck session; the Senate-passed TAS Act is the one to watch.
- Trump Accounts moved from statute to operational guidance, including a tax-preferred $2,500 per-employee employer contribution that belongs in 2027 benefits planning.
- Tariff risk now extends beyond direct Russian imports to any supply chain that touches the top five buyers of Russian oil and gas.
- The 2026-2027 Priority Guidance Plan and Notice 2026-58 together tell you which answers you can expect this year and which old rulings you should stop quoting.
This week in federal tax, in one line
Congress and Treasury wrapped a busy stretch with the TAS Act moving to the House, Trump Account auto-enrollment going operational with a $2,500 employer contribution, a 500% Russian-import tariff plus 180-day USTR reviews of a five-country list, and a 121-project guidance plan paired with 71 obsoleted items.
Frequently asked questions
Q. Did Congress actually pass the Taxpayer Assistance and Service Act, or is it still a proposal?
The Senate passed H.R. 5349, the Taxpayer Assistance and Service Act, by unanimous consent as a substitute amendment to the House-passed Tax Court Improvement Act. The bill now goes back to the House, which could take it up during the lame-duck session after the November midterm elections. Until the House acts and the President signs, the Senate language is not yet law.
Q. Can my business already set up a Trump Account employer contribution for 2026?
The new temporary and proposed regulations under section 530A are the first operational guidance for Trump Accounts and establish the automatic-enrollment and master-trust framework. Employers that want to add the up to $2,500 per employee or dependent tax-preferred contribution should read the regulations with a benefits adviser before launching, since the rules on account activation, administration, and claiming automatically established accounts are new.
Q. What should an importer do about the new 500% Russian-import tariff and the five-country tariff authority?
Run a country-of-origin review across your HTS classifications, because the 500% tariff applies to Russian imports and a separate authority can push up to 100% tariffs on the five largest importers of Russian crude or natural gas, with USTR reassessing the top-five lists every 180 days. If any of your inputs or finished goods touch those jurisdictions, build pricing and sourcing scenarios now.
Q. Why do I care about the Priority Guidance Plan and Notice 2026-58?
The plan tells you which 121 projects Treasury and the IRS expect to work on through September 30, 2027, including One Big Beautiful Bill Act implementation. Notice 2026-58 tells you which 71 older items of guidance are now obsolete, which matters if any of your positions or memos still cite them.
