Federal tax update: TAS Act, OZ, and OBBBA
What changed this week
| Development | Who it affects |
|---|---|
| Senate Finance advances the Taxpayer Assistance and Service Act (S. 5441) | Any business owner who files a return, receives IRS notices, uses the online account, waits on refunds, works through Appeals, or would rely on judicial review — in practice, essentially every taxpayer who deals with the IRS beyond simple payroll. |
| Treasury and IRS open comments on the renewed opportunity zone program | Business owners who defer capital gains into qualified opportunity funds; developers structuring QOZ projects; families sitting on large gains they may want to defer; and CPAs advising on QOZ elections, basis step-up, and exit strategy. |
| JCT corrects four OBBBA technical points — including business meals | Any business claiming a meals deduction on a Schedule C, partnership, S-corp or C-corp return; owners of specified foreign corporations that use a deferral election; taxpayers claiming the clean electricity production credit; and businesses in primary care service arrangements. |
Senate Finance advances the Taxpayer Assistance and Service Act (S. 5441)
The Senate Finance Committee reported out S. 5441, the bipartisan Taxpayer Assistance and Service (TAS) Act, following a 26-1 committee vote. The package would push the IRS to digitize more returns and correspondence, expand online taxpayer account capabilities, improve refund tracking, and publish public dashboards for backlogs and wait times. It also strengthens procedural protections, expands access to judicial review, addresses tax return preparer oversight, reinforces the independence of the Office of Appeals, expands judicial review of whistleblower award determinations, provides penalty relief for American hostages, and includes small-business relief. Committee leaders said the aim is to make it easier for taxpayers to get help and refunds on time while cutting the room for scammers.
Who it affects: Any business owner who files a return, receives IRS notices, uses the online account, waits on refunds, works through Appeals, or would rely on judicial review — in practice, essentially every taxpayer who deals with the IRS beyond simple payroll.
What to do
Read the section-by-section description of S. 5441 and note the items that would touch your recurring processes (refund tracking, notice response, Appeals). Ask your CPA to flag any pending appeals or refund tracking items that would benefit if the bill becomes law. Do not change anything you owe this quarter, but be ready to switch to the new online tools when they turn on.
Primary source: S. 5441 — Taxpayer Assistance and Service Act (Congress.gov)
Treasury and IRS open comments on the renewed opportunity zone program
Notice 2026-55 requests public comments on issues arising under Internal Revenue Code section 1400Z-2 after section 70421 of the OBBBA (P.L. 119-21) renewed and enhanced the qualified opportunity zone (QOZ) program. Treasury and the IRS have also said proposed regulations under sections 1400Z-1 and 1400Z-2 are coming, and Notice 2026-40 already previewed that regulatory package. The comment window is your chance to raise real-world questions about deferral mechanics, holding periods, basis rules, exit timing, and how the renewed program interacts with pre-existing QOZ investments before Treasury writes the proposed regulations.
Who it affects: Business owners who defer capital gains into qualified opportunity funds; developers structuring QOZ projects; families sitting on large gains they may want to defer; and CPAs advising on QOZ elections, basis step-up, and exit strategy.
What to do
Read Notice 2026-55. List every practical question the renewed program raises for your position — deferral election, ten-year hold, basis step-up, treatment of pre-2026 investments — and file a comment before the deadline in the notice. On new capital, weigh whether to sit tight until the proposed regulations arrive rather than committing to a position the coming rules could unwind.
Primary source: Notice 2026-55 (irs.gov)
JCT corrects four OBBBA technical points — including business meals
The Joint Committee on Taxation issued a correction report (JCS-IR-26) to its May 28 technical explanation of the OBBBA (JCS-1-26, P.L. 119-21). The correction fixes discussions of four provisions: the deduction for business meals; the one-month deferral taxable year election for certain specified foreign corporations; the clean electricity production credit; and primary care service arrangements. The technical explanation is what many CPAs and tax software vendors rely on to interpret OBBBA — an error in the explanation can quietly become an error on a return, especially for meal deductions taken every month.
Who it affects: Any business claiming a meals deduction on a Schedule C, partnership, S-corp or C-corp return; owners of specified foreign corporations that use a deferral election; taxpayers claiming the clean electricity production credit; and businesses in primary care service arrangements.
What to do
Ask your CPA to replace JCS-1-26 with JCS-IR-26 as the working reference for the four affected provisions before you close the current-year books. Reconfirm your meals deduction position on the current year and any estimated-tax planning that relied on the earlier reading. If you use tax software, check whether the vendor has pushed an update.
Primary source: JCT correction report JCS-IR-26 (jct.gov)
What this means for your business
- The TAS Act would change how you interact with the IRS across filing, notices, appeals and refund tracking — plan for the digital shift now.
- Opportunity zone investors should read Notice 2026-55, file comments on unresolved points, and be careful about committing new capital until the proposed regulations land.
- The JCT correction changes how your CPA reads the OBBBA — reconfirm your business meals position and the three other affected provisions before year-end.
- None of this changes what you owe this quarter, but each one changes how you plan for the next one.
This week in one line
Bipartisan taxpayer service reform is moving in the Senate, opportunity zone rules are in a public comment window, and the JCT has corrected four technical points in the OBBBA explanation — including business meals — that your CPA needs to know before closing the books.
Frequently asked questions
Q. Does the TAS Act change anything I have to do this quarter?
No. The bill has been reported out of committee but has not passed the full Senate. Your current filings, notices and appeals follow existing rules until the bill becomes law. Track the Senate floor schedule so you are ready when it does.
Q. The opportunity zone program was renewed under the OBBBA — should I invest today or wait?
Notice 2026-55 asks for comments on unresolved issues under the renewed program, and Treasury has said proposed regulations are coming. If your deferral strategy depends on those unresolved points — holding periods, basis rules, exit mechanics — waiting for the proposed regulations is safer than committing capital today.
Q. The JCT correction mentions business meals — do I need to amend a prior return?
For most owners the corrected reading affects going-forward positions rather than a filed return, but any current-year book position or estimated-tax planning that relied on the original May 28 text should be re-run with the corrected explanation before you close the year.
