Capital investment booming; lawsuits may be incoming; offer in compromise is real; and other highlights from our favorite tax bloggers.
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The Wizard of OZes
CLA : For many Opportunity Zone investors, 2026 is a pivotal tax planning year. While the OZ incentive has delivered years of tax deferral and the prospect of tax-free appreciation on qualifying investments, one reality remains: Deferred gains from the original OZ program become taxable on Dec. 31, 2026, regardless of whether the investment is sold.Taxable Talk : The IRS periodically releases draft tax forms, and recently a new draft of Form 1040 was released. In "Other Information" the IRS asks the following question: "At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?" Given current litigation against anything that the Trump administration proposes, lawsuits may be incoming soon. The question that courts must determine is whether there are legitimate reasons for the IRS to need this information.Don't Mess With Taxes : Last year, the White House directed federal agencies to modernize payment systems. So, how is the IRS doing in going paperless? A recent Treasury Inspector General for Tax Administration report details the tax agency's digital-first successes, and where it is lagging.The Sales Tax People : Form 4868 gave taxpayers six more months to file their 2025 federal tax return. Oct. 15 is the extended deadline for 2025 individual and C corporation federal tax returns. As the IRS stated in IR-2026-101, taxpayers who requested an extension to file their 2025 federal return should not wait until the Oct. 15 deadline. But here's what Form 4868 didn't give taxpayers — and what most accountants won't bring up while they're focused on finishing income tax returns.Sovos : The IRS finalized 1098-VLI regulations. This blog informs as to how lenders must identify qualifying loans, allocate interest and prepare for 2026 reporting. The final regulations answer several of the questions left open by the proposed rules. They also confirm that Form 1098-VLI reporting is much more than pulling an annual interest amount from a loan servicing system.
Decision-support platform
Armanino : For decades, enterprise resource planning systems primarily served one purpose: record what already happened. It was used to track transactions, manage purchasing, close the books and generate reports. Even with the most advanced past ERP platforms, teams had to sift through the data, interpret it, identify patterns and decide what actions to take. With AI, ERP is becoming less of a retrospective reporting tool and more of an active decision-support platform. AI doesn't just automate tasks. It fundamentally changes how the business operates.Tax Foundation : U.S. capital investment is booming above projections, in large part from the buildout in AI and associated infrastructure. That investment boom is interacting with a handful of provisions from the One Big Beautiful Bill Act that corrected a long-standing issue with the rules for deducting capital expenditures. Firms can once again fully and immediately deduct the cost of short-lived investments from their taxable income.MeyersBrothersKalicka : The federal gift and estate tax exemption remains at a historically high level ($15 million for 2026), meaning many families won't be subject to these taxes. As a result, there's increased focus on income tax planning, including the use of stepped-up basis rules to help heirs reduce capital gains tax and preserve family wealth.Taxbuzz : If some taxpayers owe the IRS more than they can comfortably pay, they have probably heard about the offer in compromise. There have even been advertisements promising to settle IRS debt for a small fraction of what is owed. An offer in compromise is real. The IRS does accept less than the full amount owed in qualifying cases. But there is an important distinction between being unable to pay the IRS today and qualifying to settle your tax debt for less than you owe.
Increased use of criminal legal fines
Tax Vox : As states face fiscal pressures, advocates and researchers have in recent years cautioned that state and local governments may increase their use of criminal legal fines and fees for revenues. Fines and fees are generally not levied based on a person's ability to pay, and the resulting debts can carry serious financial and legal consequences, with especially harmful impacts on Black households. New state and local finance data confirms those warnings may have been warranted.Trout CPA : Cost segregation is often marketed as a way to create large tax savings in real estate. That is an oversimplified way of describing it but they can be useful from a cash flow perspective. Cost segregation generally does not eliminate tax. It changes when depreciation deductions are claimed. The best cost segregation decisions are not made by asking, "How big is the year-one deduction?" They are made by asking, "Does accelerating depreciation improve the full lifecycle economics of this deal?"Vertex : What do enterprises on the leading edge of the AI-deployment curve do that sets them apart? For one thing, these companies are far more likely than less AI-mature organizations to leverage AI risk management to strengthen their risk-management activities. This application is relevant to AI in tax compliance, where organizations must make informed decisions while continuously managing compliance risk.Eide Bailly : Those who work in tax, have seen a flood of coverage about digital advertising taxes. Are they gross receipts taxes, excise taxes, sales taxes or newly created charges called "fees"? Remember the retail delivery fee trend? Depending on the state, the answer may be all of the above. That inconsistency is exactly what makes this trend so difficult to plan around.
Non-GAAP reporting
CBIZ : Public companies often look for ways to help investors understand the true drivers of business performance. While generally accepted accounting principles provide a standardized framework for financial reporting, they do not always tell the entire story. This is where non-GAAP reporting can provide value. The most effective non-GAAP reporting helps investors better understand a business without losing sight of the underlying GAAP results.Withum : The SEC-FDA memorandum of understanding signals more than interagency coordination. It reinforces the need for life sciences companies to align regulatory facts, investor communications and disclosure controls with greater discipline. This blog shows why the agreement matters and how companies can respond proactively.Wolters Kluwer : This blog has projected federal tax brackets and other inflation-adjusted amounts for the 2027 tax year. Inflation in 2026 has rebounded somewhat after years of reductions, resulting in higher increases in the ranges for the tax brackets, standard deduction amounts, Code Sec. 179 election limitations, and many other tax-related amounts for 2026.Yeo and Yeo : For many nonprofits, Form 990 can feel like one more administrative task competing for attention. Lean teams are often balancing programs, fundraising, governance and daily operations, so an annual tax filing may not receive the focus it deserves. Here are several common filing and reporting mistakes that can affect the accuracy, completeness and credibility of Form 990.
