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…
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…
How do I get an EIN without an SSN as a foreign founder? You file IRS Form SS-4 by fax or by calling the International EIN line at +1-267-941-1099. An SSN or ITIN is not required for the responsible party if none exists — write “Foreign” on line 7b instead. Plan on roughly 4–8 weeks…
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…
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…
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,…
Who can now use the IRS Business Tax Account? As of 2026, the IRS Business Tax Account covers partnerships, tax-exempt organizations, Indian tribal governments, and federal, state, and local governments, alongside the sole proprietors and corporations who had access before. Inside the account, entities can view digital notices, download CP575 EIN verification, and pay against…
How do partnership merger tax rules work under Sec. 708(b)(2)(A)? A resulting partnership is a continuation of any merging partnership whose partners own more than 50% of the capital and profits of the resulting partnership; other merging partnerships terminate. Consideration mixing cash and interests triggers disguised-sale analysis, and the merger cash-out rule at Regs. Sec….
Can I still claim the §45Q credit if EPA drops subpart RR reporting? Yes — the IRS just answered that question. Under the new 45Q safe harbor in Notice 2026-50, taxpayers who cannot rely on subpart RR of the Greenhouse Gas Reporting Program can still document secure geological storage for the §45Q credit, and the…
Which 2026 federal tax changes affect my small business? The ones with a date attached: an August guidance package implementing the 2025 reconciliation law, backup withholding on payment-app settlements, the employer paid leave credit, and a September 30 federal funding deadline that decides how fast the IRS answers you this fall. Most tax headlines never…
How much of my business interest is deductible after the OBBBA? The IRS just refreshed its answer. In August 2026, the IRS reissued its Section 163(j) FAQs to reflect the One, Big, Beautiful Bill Act. The core rule still caps the business interest deduction — but the way you calculate the cap, who qualifies as…
Does the new NYC junk fees rule apply to my business? If you sell goods or services in New York City — whether food delivery, tickets, hotels, gyms, or SaaS subscriptions — likely yes. The city’s new NYC junk fees rule and its final Click-to-Cancel rule change how you must price and how easily customers…
Do foreign FIFA teams have to file Form 990 for the 2026 World Cup? In most cases, no. New FIFA World Cup 990 relief under IRS Rev. Proc. 2026-28 waives Form 990 for eligible foreign member associations, but only for tax years in which their U.S.-source income is tied to competing in the tournament. The…
When is my Form 2290 filing deadline? Your Form 2290 filing deadline is the last day of the month after the month your taxable heavy highway vehicle was first used on a public highway during the July 1, 2026 – June 30, 2027 tax period. Vehicles first used in July 2026 are due by September…
Can a nonresident company still act as a US importer of record after December 2026? Only in a narrower form. A June 3, 2026 presidential executive order tightens eligibility, bonding, and disclosures for the foreign importer of record model, and pairs those customs changes with new federal-income-tax and state-nexus exposure. If your business imports into…
What did the OBBBA actually change for my nonprofit? Quite a lot. The OBBBA nonprofit tax rules created a new charitable deduction for non-itemizers, added floors that shrink deductions for high-income and corporate donors, expanded the §4960 excise on high pay, and set a tiered endowment tax for large private colleges. The One Big Beautiful…
What changed for California business owners in 2026? The California business tax 2026 package brings SB 122 and SB 180 — extending the business credit limitation, cutting the first-year annual tax to $400 for many new entities, and stretching the California Competes Tax Credit through 2035. And the next CCTC application window closes on August…
Do U.S. small businesses still have to file BOI with FinCEN in 2026? Not right now. Under Treasury’s March 2025 interim final rule, FinCEN BOI reporting applies only to foreign reporting companies. Domestic entities and U.S. citizens are exempt while FinCEN works to finalize the rule. The Corporate Transparency Act was supposed to be one…
When is the BBA partnership push-out deadline for a pass-through partner? If you received a Form 8986 tied to a partnership that filed an Administrative Adjustment Request (AAR) or was audited under the BBA partnership audit regime, the deadline to pay or push out further is generally September 15, 2026 — the exact date is…
Is the pass through entity tax election still worth it after the higher SALT cap? For many owners of profitable pass-throughs in high-tax states, the answer is still yes — but the analysis is now owner-level, state-specific, and no longer automatic. The pass through entity tax (PTET) survived the 2025 SALT cap increase; the decision…
How do I get an EIN verification letter without calling the IRS? Designated officials on your IRS Business Tax Account can now log in and download an EIN verification letter instantly — no more calling and waiting weeks for Letter 147c in the mail. If you have ever tried to open a business bank account,…
Does the new Opportunity Zone regime just extend the old rules? No. The IRS Opportunity Zone transition rules in Notice 2026-40 keep the December 31, 2026 deferred-gain date, but reinvested QOF gains restart the 10-year clock and ongoing projects now need a written working-capital plan in place by year-end. The IRS has finally drawn a…
Do seasonal and part-time workers change my payroll tax obligations? No — hiring seasonal employees does not create a lighter set of federal payroll rules. Wages paid to summer, holiday, and part-time help are subject to the same federal income tax withholding, Social Security, and Medicare taxes as wages paid to your full-time staff. The…
Update — September 26, 2026: SB 122 was signed on June 29, 2026 (Stats. 2026, ch. 23), and the California Department of Tax and Fee Administration (CDTFA) confirmed in Special Notice L-1036 (September 2026) that sales and use tax applies to digital products, including SaaS, beginning January 1, 2027. The original article below, published July…
Does my state follow the new federal OBBBA tax breaks? Not automatically. OBBBA state conformity varies widely — some states adopt the new federal rules on R&D expensing, bonus depreciation, and Section 179, while others decouple. A deduction you claim on your federal return may be added right back on your state return. The One…
