OZ 1.0 Zone; governed AI; tax fraud cases; and other highlights from our favorite tax bloggers.
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Let's All Go to the Lobby
TaxProf Blog : An AMC theater location convinced the Arizona Tax Court that it qualified for lower property tax valuation as a single-use movie theater even though it uses over a third of its auditoriums for storage. Maricopa County, Arizona, asked the court to affirm its determination that the location was a 30-auditorium mixed-used movie theater worth nearly $29 million in full cash value and $12.5 million in limited value.Sovos : Two forces are converging on the finance function: the global spread of regulated, real-time tax networks, and the rise of governed AI. Together they are turning compliance from a periodic, after-the-fact obligation into a continuous property of how transactions flow. For CFOs who have spent the last few years implementing e-invoicing mandates, that raises a practical question: You have already paid for a compliance foundation; what do you build on it? The teams answering that question well are already pulling away from the teams that treat the mandate as done.MeyersBrothersKalicka : As people approach retirement, there are many essential tax and financial planning considerations. It is vital to identify these key planning opportunities by reviewing finances, understanding investment and retirement accounts, and examining future income streams. By gaining this knowledge, better-informed decisions are made to maintain financial security and organization throughout retirement.Mauled Again : The Department of Justice issued a press release that brings to center stage an aspect of how the criminal justice system produces questionable outcomes in tax fraud cases. A Florida man filed "numerous false tax returns on behalf of himself and purported trusts he controlled," and pleaded guilty to one count of filing a false tax return. What puzzles our blogger is how someone who filed "numerous tax returns" can be permitted to plead guilty to one count of filing "a" false tax return.
Basically postcards!
Taxable Talk : The very first income tax form — the 1913 Form 1040 — was four pages (including instructions). Back in 2018 (during the first Trump administration), the IRS bragged about how the new tax forms were basically postcards! Well, that was a lie then and is even more of a lie today.Global Taxes : A $500,000 gift from a covered expatriate in 2026 can create a $192,400 U.S. tax bill for the recipient, not the donor: $500,000 minus the $19,000 Section 2801(c) exclusion, multiplied by 40%. Form 708 is the IRS's new filing mechanism for that result. Individual U.S. citizens and residents, domestic trusts and certain foreign trusts use it to report and pay the Internal Revenue Code Section 2801 tax on covered gifts and covered bequests received directly or indirectly from covered expatriates.ITEP : As many states enter a new fiscal year this month, it's an ideal time to take a closer look at a major but often overlooked category of government spending: tax expenditures. To make these programs easier to explore and compare, this blog has updated its state-by-state tax expenditure reports resource.
Spreadsheet ping-pong
Financial Cents : It's the fifth business day of the month, and there's a $4,200 payment to a vendor nobody at the firm recognizes. So there's a repeat of last month: Export the transactions, start a new tab in the spreadsheet, and fire off another email asking the client what the charge was. Then wait. It's not hard, per se. But that's the problem. Month-end close is death by a thousand small tasks. This blog walks through where the close process breaks down.The Sales Tax People : Saving on sales tax is no small advantage for a business. One of the most overlooked ways to cut costs is by maximizing sales tax exemption certificates, especially if the business regularly purchases supplies, inventory, equipment or other taxable items. Understanding what a sales tax exemption certificate is and how it works can help businesses unlock meaningful savings and strengthen cash flow.U of I Tax School Blog : When taxpayers and the Tax Code collide, it's never fun. Everyone has experienced the headache of having to explain to clients that they aren't eligible for the deduction or credit they thought they could take. Difficult conversations like these often arise when explaining the health insurance deduction to self-employed taxpayers.Baker Tilly : The IRS recently released Notice 2026-40, which announces that the Treasury and the IRS intend to publish proposed regulations on qualified opportunity zones under Internal Revenue Code sections 1400Z-1 and 1400Z-2, as amended by the One Big Beautiful Bill Act. The proposed regulations will create transitional guidance to implement the various OBBBA provisions. Most of the guidance in the notice is not surprising — e.g., previously deferred gains recognized on Dec. 31, 2026, are not eligible for further investment. The proposed transitional guidance for qualified opportunity funds and qualified opportunity zones business property, however, was not anticipated, and would significantly restrict the ability to invest in an "OZ 1.0 Zone" after Dec. 31, 2026.
All that glitters
Taxing Subjects : Gold has long been viewed as a safe-haven asset during periods of economic uncertainty. As inflation concerns, market volatility and geopolitical events influence investor behavior, many taxpayers are buying, selling or holding gold as part of a diversified investment strategy. For tax professionals, that can mean more questions from clients.Boyum & Barenscheer : The Minnesota Department of Revenue finalized its 2025 income tax forms, a good moment to flag something that affects returns whether 2025 returns have been filed or not. Minnesota's 2026 omnibus tax bill made several changes that apply retroactively to 2025 returns. If returns have already been filed, some may call for an amended return. If they haven't been filed yet, they're worth reviewing first.TaxConnex : For many businesses, growth no longer stops at state lines. Whether there is expansion into Canada, Europe or other international markets, selling globally opens the door to new customers and a whole new set of tax obligations
