Midterm elections a month away; tax geeks; zero U.S. tax; and other highlights from our favorite tax bloggers.
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No longer have a choice
Taxable Talk : Clients who have children have been asked if they want to enroll them in Trump accounts, the new savings accounts for children, with children born between 2025 and 2028 receiving a $1,000 starter contribution (if requested by a parent or guardian). Some clients opted out, but the Treasury Department announced earlier that children will have Trump accounts. Parents still have to opt in for the $1,000 starter contribution, but the accounts will exist. If parents really don't want these accounts for their children, they no longer have a choice.Sikich : Trump accounts, one of the One Big Beautiful Bill Act's major provisions, created a new investment vehicle for parents to fund their children's future. But this new opportunity required further regulatory clarity. In response, proposed regulations issued by the Treasury Department and the IRS in August 2026 provide a framework for employers that want to make contributions to Trump accounts.Eide Bailly : The midterm elections are just over a month away, and by most analyses Democrats are poised to pick up gains in Congress. In our neck of the woods, this raises some important questions. First and foremost, if Democrats do gain enough leverage to push their agenda, what will that mean for taxes?CBIZ : The federal research and development tax credit, also known as the research and experimental credit, continues to generate significant tax savings for companies investing in innovation. However, beginning with tax years after Dec. 31, 2025, taxpayers claiming the credit will face the most significant reporting and documentation changes in decades.
Nigh impossible
Don't Mess With Taxes : U.S. taxpayers know it is nigh impossible to escape taxes. Those who are tax geeks (which includes many of those who are reading this) also tend to expand the tax world, finding connections everywhere. That's the case with three IRS-related reports that bring artificial intelligence, celebrities and data centers together.Taxbuzz : The United States taxes its citizens and permanent residents on worldwide income. Living abroad does not change that. The filing threshold tracks the standard deduction for a person's filing status, and self-employment is stricter. Filing is not the same as owing. Between the Foreign Earned Income Exclusion and the foreign tax credit, most Americans abroad settle at zero U.S. tax. The return is what proves it.Vertex : Governance, risk and compliance and enterprise risk management groups are tax-adjacent functions that warrant close attention. Although corporate tax departments typically operate outside of GRC and ERM programs, the functions share similar mandates and pressures. In some organizations, tax leaders and GRC/ERM leaders both report into the CFO. As a result, tax and other risk functions share a need to approach AI differently — by generating measurable value from AI tools and functionality without introducing unnecessary risk.Withum : On Sept. 29, the New York Supreme Court, Richmond County, ruled against the New York City Department of Finance over how it rolled out the new pied-à-terre surcharge. In O'Brien v. City of New York, the court ordered the DOF to take down a supplemental roll listing more than 900,000 properties and cancelled the surcharge notices the DOF had mailed.TaxProf Blog : Former U.S. Commerce Secretary Wilbur Ross and casino tycoon Steve Wynn filed a lawsuit challenging New York's pied-à-terre tax, saying that it's unconstitutional because it only targets people who live outside the city. The case, unlike a previous suit filed against New York City by a group of homeowners on Staten Island seeking to delay the rollout of the tax, directly challenges the constitutionality of the levy, which was signed into law in May by Gov. Kathy Hochul.
Colorado's case against Netflix
Taxjar : When a state updates its rules for digital products, sellers often wonder whether the change applies only to future sales or could also affect earlier transactions. Colorado's case against Netflix shows why the answer depends on an important distinction: Did the state create a new tax, or did a court conclude that an existing tax law already covered the product?Yeo and Yeo : According to the Department of Labor's Employee Benefits Security Administration, a 2023 study found that nearly 30% of employee benefit plan audits contained major deficiencies. Among the most prevalent problem areas: participant data accuracy (cited in 15.6% of audits) and eligibility errors. For plan administrators and fiduciaries, understanding what drives these issues and how to prevent them is a core compliance responsibility.
Maybe Bob is lying
Hall CPA : Big-time executives either in high tech or the medical space work really hard, and now are making $500,000 plus, and get massive performance bonuses each and every year. Life is great; they drive nice cars, and their family is secure. But their buddy Bob keeps talking about how he's saving on taxes each and every year. But CPAs tell clients that there is a loss "cap" each year, and they will never let them do that. Here's how to work around that (and oh yeah, maybe Bob is lying).The Tax Times : On Sept. 28, the Treasury and the IRS released Notice 2026-62, which identifies a group of investment fund strategies they believe produce tax results "inconsistent with the purpose and proper application" of the Internal Revenue Code. At the same time, the IRS issued Revenue Ruling 2026-20. That ruling treats one of the most heavily marketed strategies, the so-called "Section 351 ETF conversion," as a taxable exchange.TaxConnex : Sales tax rules are constantly changing, and 2026 has brought significant developments for businesses selling software, digital products, streaming services and other taxable goods and services across state lines. This blog offers some of the key sales tax legislative updates businesses should be aware of in 2026.
