How did OBBBA expand the §4960 excise tax on nonprofit executive compensation? Internal Revenue Code §4960 imposes a 21% excise tax on a tax-exempt organization’s “excess remuneration” — compensation over $1 million paid to a covered employee — plus certain excess parachute (separation) payments. Under the One, Big, Beautiful Bill Act, beginning with tax years…
What are the most important federal tax developments from late May 2026? Four stand out. (1) The Joint Committee on Taxation released a 341-page provision-by-provision report on the One, Big, Beautiful Bill Act (OBBBA, P.L. 119-21) and flagged 10 provisions that may need technical correction. (2) Treasury and the IRS issued new guidance — final…
How did OBBBA change federal student loans for graduate and professional students? The One, Big, Beautiful Bill Act (OBBBA, Pub. L. No. 119-21) placed new caps on federal student loans and directed the U.S. Department of Education (DOE) to define which “professional degree” programs qualify for higher borrowing limits. Under the DOE’s final rule, only…
What is a Trump Account and how do you open one? A Trump Account is a new type of tax-advantaged individual retirement account for children, created by the One, Big, Beautiful Bill (OBBBA, enacted July 4, 2025). A parent, guardian, or other authorized individual can establish one for a child who is under age 18…
Do states follow the federal QSBS exclusion under OBBBA — and why does state conformity matter? Not automatically. The One Big Beautiful Bill Act (OBBBA, Pub. L. No. 119-21) expanded the federal Qualified Small Business Stock (QSBS) exclusion under IRC §1202 — but states set their own conformity. Maine and Oregon have enacted legislation DECOUPLING…
How should companies account for transferable tax credits under U.S. GAAP? The Financial Accounting Standards Board (FASB) voted in May 2026 to advance a project on the accounting treatment of nonrefundable transferable tax credits — including the Inflation Reduction Act (IRA) clean energy credits under IRC §6418, CHIPS and Science Act semiconductor credits, and One…
Who qualifies for the No Tax on Tips deduction under the final regulations? The Treasury and IRS issued final regulations on April 10, 2026 (IR-2026-49) implementing the “No Tax on Tips” deduction under the One, Big, Beautiful Bill Act (OBBBA). Workers in 70+ occupations on the Treasury Tipped Occupation Code (TTOC) list can deduct qualified…
How did the IRS 2026 filing season perform and what’s next for the agency? IRS CEO Frank Bisignano reported 134 million returns filed, a $3,400 average refund up 11%, and $2 billion collected from the agency’s five largest enforcement cases — even as House appropriators propose a 9% FY2027 budget cut. The IRS 2026 filing…
Are scammers exploiting the One Big Beautiful Bill? Yes — OBBBA tax scams are already active in 2026, with fraudsters targeting seniors, workers, and small business owners. This guide covers every major scam type so you can protect yourself and your finances. Tax season is stressful enough on its own. But whenever Congress passes major…
Can I deduct overtime pay from my federal taxes under the new law? Yes — the One, Big, Beautiful Bill Act (OBBBA) created an overtime tax deduction worth up to $12,500 for individuals ($25,000 joint filers) for qualifying FLSA overtime earned from 2025 through 2028. A separate tips deduction of up to $25,000 is also…
