Appeals versus the Tax Court; fourth quarter tax projections; state budget planning; and other highlights from our favorite tax bloggers.
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Choice between talking and fighting
Gordon Law : When an examination closes with an unfavorable result, many treat the choice between taking the dispute to the IRS Independent Office of Appeals and the U.S. Tax Court as a choice between talking and fighting. Framing the decision that way misses important strategic considerations.Baker Tilly : Oil and gas producers with operating interests in qualified marginal wells may be eligible for a federal income tax credit under Section 45I of the Internal Revenue Code. For tax years beginning in calendar year 2026, eligible natural gas production may generate a credit of $0.81 per thousand cubic feet. The Marginal Well Production Credit was established under the American Jobs Creation Act of 2004 to provide tax relief for qualifying domestic oil and natural gas production from marginal wells.Tax Vox : For many, Labor Day marks the beginning of a new school year and football season. For state budget offices, it's time for staff to sharpen their analyses of options to balance their Fiscal Year 2028 proposed budgets while advancing their state's core policy priorities. State budget planning will be especially challenging this year, as states grapple with managing shifts in federal funding from last year's One Big Beautiful Bill Act and other federal policy changes.CLA : For many real estate owners, operators and investors, year-end planning begins when tax projections arrive in the fourth quarter. At that point, there may be limited time to update financial records, evaluate alternatives, make decisions and complete required actions before year-end. Stronger planning starts earlier, with current accounting records, reliable cash flow projections and coordination among the accounting, tax and advisory teams.Taxable Talk : The Court of Appeals for the Federal Circuit reversed the Court of Federal Claims in a case where it held that the Net Investment Income Tax could be offset by a foreign tax credit. The court ruled in Christensen v. US and Estate of Bruyea v. US that a foreign tax credit against the NIIT cannot be taken. While one or both cases can be appealed to the Supreme Court, there is doubt that this is the kind of case that the Supreme Court would accept.
Reserved for enthusiasts
Tax Foundation : Investment in digital assets, long thought of as a niche interest reserved for enthusiasts, has broken into the mainstream. In 2026, about one in five U.S. adults report being invested in or using cryptocurrency. The market capitalization of cryptocurrency grew tenfold from mid-2020 to its late-2025 high. Yet crucial questions remain on the financial, regulatory and tax treatment of digital assets.Eide Bailly : Washington State's 2025 changes to its digital automated services rules is one of the more significant sales tax developments facing technology-enabled service providers. For years, services that primarily involved human effort performed in response to a customer's request were excluded from the definition of DAS. Historically, that exclusion allowed many businesses to distinguish between taxable automated services and nontaxable professional or consulting services. This blog walks through what changed and where things stand today.CBIZ : Construction contractors operate in a distinctive environment due to the unique nature of their business. Many contractors may wonder how their financial statements may show net income in an amount that differs from that shown as taxable income on their tax returns. This blog reviews several scenarios highlighting the accounting treatments available to construction contractors that may differentiate their financial reporting from their income tax reporting.
Payment-operations problem
Taxbuzz : A payment can fail even when the customer did everything they intended to do. That is one of the payment issues merchants tend to discover only after they have built a process around collecting money. The customer submits an ACH payment. The merchant records the receivable. The accounting team expects the funds. Days later, the transaction is returned, and someone has to determine what happened, contact the customer, reconcile the account and collect the money again. If it happens repeatedly, the merchant has a payment-operations problem that deserves attention.Trout CPA : Those buying a business using Small Business Administration financing, might have heard about SBA's new quality of earnings requirement. Beginning Oct. 1, certain SBA-financed business acquisitions of $3 million or more will require an independent quality of earnings report as part of the lender's underwriting process. The biggest risk in many acquisitions isn't the bank, the lawyer or even the negotiation. It's not knowing exactly what you're buying.Withum : Similar to other major AI developers, Google has been facing several lawsuits that challenge the tech giant's alleged use of copyrighted materials to train its AI models. Against that backdrop, Google's white paper on AI policy, "A Pragmatic Approach to AI Governance in America," appears to present a balanced approach to facilitating continued innovation on one hand, while addressing public concerns on the other.Wolters Kluwer : The tax and accounting landscape has entered a digital-first era, and firms are increasingly split into two groups. One is building integrated, AI-enabled ecosystems and the other hopes incremental upgrades will be enough. They won't be.
An unfortunate story
Hall CPA : Reed v Commissioner is an unfortunate story of those who decide that systems, books and records are not important, and that spreadsheets do not do well in the face of IRS and court scrutiny. Scott Reed was a real estate consultant who did historic rehab deals in Arkansas and Alabama. He ran multiple businesses and had multiple real estate development deals. He also had three historic redevelopment projects. And, because of cash issues, he made several business payments out of personal accounts for all these entities and businesses. And you can immediately tell this is not going to go well for Reed. Why? Commingling of personal funds, oral handshakes and cash coming and going in the wrong places.Yeo and Yeo : Those who have faced an employee benefit plan audit know the experience can range from smoothly efficient to painfully chaotic. The difference rarely comes down to the complexity of the plan — it's almost always about preparation. Organizations that invest time upfront in gathering documents, reconciling data and organizing records tend to breeze through the process. Those who scramble often face delays, mounting follow-up requests and lingering anxiety about what issues might surface.RSM : State and local gross receipts taxes can create significant exposure for multistate businesses because they generally apply to revenue rather than profit. Although the applicable rates may appear modest, the combination of a broad tax base, limited deductions, multiple layers of taxation and jurisdiction-specific rules can produce a meaningful cost, including for businesses operating at low margins or at a loss. These taxes also extend beyond well-known state regimes to local business license taxes, industry-specific taxes and hybrid systems. This blog offers 10 considerations that can help businesses identify potential exposures and strengthen compliance processes.
