Critical cautionary tale; reactive to proactive; consumption taxes; and other highlights from our favorite tax bloggers.
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Rainy days and Mondays
Vertex : Rainy-day funds are thinning just as federal policy changes and diminished federal revenue sharing are driving up states' administrative costs, and as the U.S. contends with an elevated risk of recession. In 2026, federal revenue sharing has decreased amid economic uncertainty and reductions in federal funding. This increased fiscal pressure, jointly with a combination of economic factors, could nudge state and local tax policymakers to adopt more aggressive stances regarding indirect tax changes.Avalara : The IRS collects billions of dollars in delinquent tax payments each year, including a significant amount from businesses on payment plans. Businesses typically choose to apply for a payment plan when they need an extension to pay money owed to the IRS. Being unable to pay the IRS on time is a common issue that can arise from cash flow issues or simply discovering unexpected tax bills. How do IRS payment plans work? This blog covers the basic process of applying for and setting up a payment plan, as well as some key details about IRS business payment plan interest rates.
One digit off
Global Taxes : A foreign-owned U.S. corporation files a timely Form 1120-F refund claim with the right legal name, tax year, withholding statements and refund amount, but one digit in the employer identification number is wrong. A recent Tax Adviser analysis asks whether that mismatch should destroy an otherwise timely claim.National Association of Tax Professionals : Tariff refunds are moving from trade news to tax-season reality, arriving in client accounts, and the tax treatment is anything but straightforward. U.S. Customs and Border Protection launched a new refund process on April 20, 2026, and approved claims may result in refunds of previously paid tariffs, including applicable interest. For tax professionals, the practical question is not only whether a client receives a refund. The harder question is what happens next on the tax return?Baker Tilly : On April 23, 2026, Treasury and the IRS announced that they plan to issue guidance addressing the federal tax consequences of a DOJ/DEA final order dated April 22, 2026, rescheduling certain cannabis-related products from Schedule I to Schedule III under the Controlled Substances Act. According to the DOJ, the order "immediately" reschedules covered medical cannabis and implements President Trump's Dec. 18, 2025, executive order, "Increasing Medical Marijuana and Cannabidiol Research."The Tax Times : In IR-2026-65 the IRS has released a new, time-limited settlement initiative for taxpayers involved in conservation easement and historic preservation easement disputes, signaling both continued enforcement pressure and a renewed effort to resolve a large inventory of pending cases. Since 2020, the IRS has offered settlement programs in syndicated conservation easement cases, generally requiring taxpayers to concede the charitable deduction entirely, accept penalties and retain only a limited deduction for out-of-pocket costs.
Growing threat
Meyers Brothers Kalicka : Business owners, beware: Online identity theft is a growing threat that can cripple companies or shut them down forever. Signs of business identity theft include being unable to file a tax return because one has already been filed using your Employer Identification Number, receiving a rejection for a routine extension and obtaining tax transcripts that don't match your tax returns.RSM : Treasury guidance defining the operating framework of Trump accounts gives families, financial institutions and employers their clearest sense yet of how the child-savings arrangement is intended to function and what operational, compliance and planning obligations will follow. The guidance sets early expectations for enrollment pathways, trustee responsibilities and the timing of federal contributions for eligible children born between 2025 and 2028.Tax Vox : A child's first year often brings major new expenses. The Supporting Newborn Parents Act, introduced by Rep. David Valadao, R-California, would provide parents of newborns a refundable tax credit of up to $2,000 per infant to help cover those early costs. The Tax Policy Center estimates 3.4 million families with children (6.5%) would receive just over $2,000 per family. TPC also estimates the 10-year cost of this proposal would be about $71 billion (FY2026-FY2035).
The devil is in the details
Eide Bailly : Recent state tax developments are a good reminder that state tax exposure doesn't always come from big, sweeping changes — it can quietly develop through the details. Across states and courts, questions around taxability, sourcing and classification continue to reshape compliance obligations for both businesses and individuals.Tax Pro Center : June is the month to shift from reactive to proactive. With the April filing season over and the next wave of deadlines, including Q2 estimated tax payments due in June, now is the time to reach out to business clients about mid-year tax planning, payroll adjustments and any life or business changes that could affect their year-end liability. June also offers the breathing room to evaluate workflow bottlenecks from the prior season, upgrade software or processes and begin training staff on any new tools or regulatory changes taking effect in the second half of the year.Taxing Subjects : Tax preparers often file amended returns long after the original filing deadline passes. In 2026, amended returns continue to play a major role in correcting taxpayer errors, claiming missed credits and responding to IRS notices. While the basic rules for amended returns remain familiar, several procedural changes and IRS modernization efforts affect how preparers handle Form 1040-X and other amended filings. Understanding the current rules can help reduce delays, avoid rejected filings and improve client communication.Current Federal Tax Developments : For tax professionals handling the sale of closely held C corporations with highly appreciated assets, balancing the desire for single-level taxation against the risks of transferee liability is a familiar challenge. A recent decision by the U.S. Court of Appeals for the Federal Circuit, Dillon Trust Company LLC v. United States, serves as a critical cautionary tale. This decision highlights the severe consequences of willful blindness in stock sales to intermediary entities utilizing abusive tax shelters, underscoring that sellers cannot turn a blind eye to economically irrational bids without risking exposure to massive transferee tax liability, penalties and interest.
