Tax Updates

IRS final regs remove the “associated property rule” for interest capitalization on improvements to designated property, aligning with court decisions. New rules apply after Oct. 2, 2025; proposed regs can be used for tax years after May 15, 2024.

Michigan's new budget updates state tax rules, decouples from parts of OBBBA, revises IRC conformity, and creates the Comprehensive Road Funding Tax Act to direct tax revenue to road projects.

Supplemental income for nonresident aliens is subject to different federal withholding rates than for U.S. persons. Correct rates are set by the IRC and related regulations, not by general U.S. withholding rules.

Payment processors face sales tax challenges with bundled transactions. Features classified as software or taxable services, along with invoicing methods, can impact sales tax treatment depending on state rules.

The Pennsylvania Supreme Court ruled Pittsburgh's 3% “jock tax” on nonresident athletes and entertainers unconstitutional, finding it discriminates against nonresidents performing in city-owned sports venues.

SCOTUS will hear arguments on Trump's IEEPA tariffs on Nov. 5, 2025, after lower courts ruled the tariffs exceeded presidential authority. Key cases: V.O.S. Selections, CAFC, and Learning Resources v. Trump.

The IRS extended the comment period for Form 6765 draft instructions and delayed mandatory Section G reporting. The transition period for research credit refund claims now runs through January 10, 2027, giving taxpayers more time to prepare.

The IRS has maintained “normal” operations since the government shut down on October 1 but has not yet announced whether that will continue beyond the first five days covered by its initial contingency plan.

OBBBA allows individuals in eligible tipped jobs to deduct up to $25,000 in tips per year (2025–2028). The deduction phases out at $150,000 AGI ($300,000 joint). Employers are not eligible for this deduction.

The IRS on September 29 issued guidance on corporate separations, incorporations, and reorganizations that undoes changes planned under the previous administration. Read the insight to learn more.

Explore key tax considerations and entity structures for charitable giving, including income, estate, and GST tax implications, to help ultra-high-net-worth individuals align their philanthropic goals with effective planning strategies.

Learn about new House bills aiming to clarify IRS penalty procedures and reform Tax Court processes, plus other recent tax administration proposals and what they could mean for taxpayers and tax professionals.

OBBBA federal tax changes impact state taxes. States use fixed-date, rolling, or selective conformity to the IRC. Multistate companies must track how each state adopts or decouples from OBBBA, affecting corporate income tax liabilities.

Explore how the One Big Beautiful Bill Act permanently restores 100% bonus depreciation, introduces full expensing for qualified production property, and expands Section 179 deductions-offering new opportunities for immediate tax savings on capital investments.

Explore Maryland's 60-day report on the revenue impact of the One Big Beautiful Bill Act, including key business and individual tax changes, temporary decoupling provisions, and projected fiscal effects for 2026 and 2027.

The OBBBA allows a “no tax on tips” deduction of up to $25,000/year for 2025–2028 for certain tipped occupations. The deduction phases out at $150,000 AGI. New tip reporting rules start in 2026. SSTB occupations are excluded.

The One Big Beautiful Bill Act has permanently reinstated 100% bonus depreciation and introduced qualified production property (QPP), allowing immediate expensing for certain facilities. These updates provide greater stability for fixed asset planning and offer new opportunities for tax planning. Businesses should review the revised depreciation rules to make informed decisions about capital investments and eligibility for these benefits.

Discover how manufacturers are adapting their tax strategies in response to evolving U.S. tax policies and what it means for your business. Click to read key insights and recommendations.

The California Franchise Tax Board has adopted amendments to its market-based sourcing regulation, effective for tax years beginning January 1, 2026. Key changes include updated rules for sales of marketable securities, removal of distinctions between individual and business customers, and new requirements for the reasonable approximation method. Taxpayers seeking to change their method must notify and obtain prior approval from the FTB.

Sen. Bernie Moreno has proposed the HIRE Act, which would introduce a 25% excise tax and deny deductions for certain payments related to offshoring services that benefit U.S. consumers. This legislation targets outsourcing arrangements, such as call centers and shared service centers, and includes increased penalties for noncompliance. If enacted, the bill would have notable implications for taxpayers engaged in these activities.