Tax Section news and member FAQ

• New insights on tariffs and refund considerations
  Stay ahead of evolving tariff developments. The Tax implications of tariffs resource has been updated to include the latest insights on tariff refund considerations — helping you understand how potential recoveries may impact taxable income, cost of goods sold and overall planning. With refund rules still developing, this is a must-read to help you navigate the tax implications with confidence.

• This week's listen — Beyond the script: Improv for advisory confidence
  Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders with the Tax Section Odyssey podcast. In this episode, April Walker and Jennifer Dymond discuss how improv techniques can help tax practitioners enhance client communication and build advisory confidence.

• June 2026 tax advisory tip — Half-year review
  Compare clients’ year-to-date spending against their annual budget and discuss whether they’re on track or need adjustments. There’s still time to course-correct before year-end. Explore more tips, key dates and planning insights in the 2026 Tax and Financial Planner.

• AICPA small firm generative AI policy template
  Help your firm adopt AI with confidence. This customizable policy template is designed specifically for small firms — giving you a practical starting point to manage risks, set expectations and guide responsible AI use.

• Trump account elections now available online
  Taxpayers can now submit a Trump account election through their IRS online account — alongside Trumpaccounts.gov — and track their election status online. Pilot contribution deposits are expected to begin no earlier than July 4, 2026, with additional IRS notices forthcoming. Find out answers to commonly asked questions, key information and insights.

• Revised 1099‑MISC and 1099‑NEC now available
  The IRS has released Form 1099‑MISC, , and draft Form 1099‑NEC, , on IRS.gov, including new fields for qualified overtime, qualified tips and a tipped occupation code. Draft instructions for forms 1099-MISC and 1099-NEC have also been released. Check out our FAQs for more insights.

• Pillar Two in focus: New GloBE filing and safe harbour guidance
  Organization for Economic Development’s (OECD) jurisdictions implementing the Global Minimum Tax from 2024 have introduced a common approach for centralized GloBE Information Return filings, along with updates to the central record and guidance on the Transitional UTPR Safe Harbour. Visit the AICPA’s OECD BEPS 2.0 — Pillar One and Pillar Two Resource Center for more tools and the latest updates.

• Protecting COVID‑era refunds: Key update from the NTA
  In her third blog, the National Taxpayer Advocate (NTA) highlights urgent steps to preserve potential COVID-era refunds — most taxpayers must act by July 10, 2026, and may need to file protective claims to safeguard their rights. Visit the AICPA’s Kwong v. United States Resource Center for more news, tools and insights.

• State tax update: Georgia lowers corporate tax rate, plans further reductions
  Georgia has enacted further corporate tax rate reductions under H.B. 463, signed May 11, 2026. Effective for tax years beginning on or after Jan. 1, 2026, the rate decreases from 5.19% to 4.99%, with additional annual reductions of 0.125% starting in 2027 — subject to certain conditions — until reaching 3.99%. This follows rate cuts enacted in 2024 and 2025.

• Your questions on tariffs — answered
  Looking for clear guidance on international tariffs? Our tariff frequently asked questions (FAQs) have been recently updated and continue to serve as a go to resource for timely answers and practical insights for tax practitioners.

• A practical template for your GLBA WISP
  Our Gramm‑Leach‑Bliley Act (GLBA) Written Information Security Plan (WISP) template has been updated to ensure continued clarity and accuracy. Use this customizable template to help document your firm’s information security program and support compliance.

• State tax update: Arkansas tax rates reduce
  Governor Sarah Huckabee Sanders has signed legislation lowering the state’s top individual and corporate income tax rates. The top individual rate is now 3.7%, with a two‑tier structure applying for income above $94,700. Beginning with tax years starting on or after Jan. 1, 2027, the top corporate income tax rate drops to 4.1% (from 4.3%), with the same rate structure applied to both domestic and foreign corporations.

• Stay updated: Kwong v. United States
  Kwong v. United States (Kwong) is a court case every tax practitioner should be watching. Head to the new AICPA Resource Center for updates and find frequently asked questions (FAQs) and tools including a client alert email template to help you navigate what’s next.

• A new IDES access solution for foreign filers
  The IRS is creating a new Foreign Filer Transmitter Control Code Registration System to help certain filers submit information returns through the International Data Exchange System (IDES). This addresses access issues caused by the new Information Returns Intake System (IRIS) system's stricter authentication requirements. Additional guidance on eligibility and implementation will be released soon.

• State tax update: Kentucky R&D expense clarification
  Kentucky's H.B. 869 was signed on April 27, 2026, and modifies H.B. 757, which had decoupled the state from H.R. 1 provisions on domestic research and development (R&D) expense treatment under Sec. 174A. The new law clarifies that for tax years beginning on or after Jan. 1, 2026, Kentucky taxpayers must add back R&D deductions claimed under Sec. 174A but may subtract amortization calculated under Sec. 174 as it existed on Dec. 31, 2024.

• Tax Section Odyssey podcast: A timely look at Kwong
  In this episode of the Tax Section Odyssey podcast, April Walker and Michael Waalkes unpack Kwong and why it has quickly become a post–filing season priority for CPA firms. Tune in for practical insights on how Sec. 7508A’s COVID relief period may affect deadlines, refund claims and risk management — and what firms should be doing right now.

• Received a CP53E notice? What to know
  As the IRS continues modernizing its payment process, some taxpayers may receive a CP53E notice requesting banking information. Explore an overview of these notices and key practical tips.

• IRS announces streamlined extension option for disallowed ERC claims
  The IRS has announced a streamlined way for certain taxpayers to extend the time to resolve a disallowed employee retention credit (ERC) claim and avoid refund litigation. Visit our FAQs to learn how the two‑year deadline works, who qualifies for the CP320B/Form 907 process and what steps may be needed to preserve an ERC dispute.

• CAPE tariff refund portal — What CPAs and firms need to know + client letter
  Following the Supreme Court’s February 2026 ruling, U.S. Customs and Border Protection (CBP) has launched a new International Emergency Economic Powers Act (IEEPA) tariff refund process through its Consolidated Administration and Processing of Entries (CAPE) system. Learn key steps CPAs should consider and download a client‑ready letter explaining CAPE filing requirements starting April 20, 2026. Bookmark the Tariff Resource Center for the latest news, guidance and tools.
  
  

• Taxpayer Advocacy Panel issues 2025 Annual Report
  On April 24, the Taxpayer Advocacy Panel released its 2025 Annual Report highlighting accomplishments and ongoing efforts to strengthen the IRS delivery, improve communications with taxpayers, reduce taxpayer burden and support continued modernization of tax administration.
  
  

• State tax update: What’s changing in Kentucky, Oregon and Maine
  Several states are decoupling from selected H.R. 1 provisions beginning in 2026, including bonus depreciation and R&D expensing, with Kentucky and Oregon making targeted conformity changes. Maine will also impose a new 2% surcharge on high income individuals, while state level adoption of H.R. 1’s R&D expensing rules will be phased in through 2030.

• IRS issues Whistleblower Alert, expands efforts to uncover fraud
  The IRS issued a Whistleblower Alert warning of potential misuse, diversion, or fraudulent use of federal funds by tax‑exempt organizations, individuals, and businesses, and is encouraging the public to report credible information. The alert highlights this as a high‑risk compliance area and aims to help the IRS identify and address possible fraud involving federal funds and grants.
  
  

• Latest disaster tax relief guidance for Hawaii, Mississippi and Tennessee
  Stay current on disaster‑related tax relief with our updated Disaster Tax Relief FAQs and Latest Developments page, now featuring new IRS alerts for Hawaii, Mississippi and Tennessee. Tax Section members can use this page to quickly track filing extensions, penalty relief and other time‑sensitive guidance for affected and non‑affected taxpayers.
  
  

• State tax update: Maryland decoupling and West Virginia rate update
  Maryland has enacted key depreciation changes starting after Dec. 31, 2025, including decoupling from Sec. 168(n) qualified production property depreciation and limiting Sec. 168(k) bonus depreciation for certain manufacturers. Meanwhile, West Virginia’s individual income tax rates for tax years beginning on or after Jan. 1, 2026, now range from 2.11% to 4.58%.

• Final Treasury/IRS regulations address tip income
  The IRS has released final regulations implementing H.R. 1 “no tax on tips,” defining eligible occupations and clarifying what qualifies as deductible tips. The final rules expand and refine the list of tipped occupations and provide more detail on tip treatment and reporting, following extensive public comment. Access in‑depth insights with answers to common questions and side‑by‑side comparisons of the final and proposed regulations.
  
  

• New IRS guidance sets path for 2027 Qualified Opportunity Zones (QOZs)
  On April 7, 2026, the IRS issued Rev. Proc. 2026-12, which outlines the process for nominating new QOZs for the next designation cycle. It identifies eligible population census tracts, including those that are entirely rural, that may be nominated by the chief executive officers of each state, the District of Columbia and U.S. territories. Census tracts nominated under this process, once approved, will be designated as QOZs beginning in 2027. Explore key insights.
  
  

• IRS Business Tax Account update
  On April 6, 2026, the IRS expanded its Business Tax Account (BTA) to include partnerships, government entities and tax-exempt organizations, broadening secure, self-service digital access beyond sole proprietors and corporations. Check out related guidance and quick links to additional IRS online tools resources for more information and practice insights.
  
  

• State tax update: IRC conformity developments in Georgia and New Mexico Georgia's H.B. 1199, enacted March 20, 2026, updates Internal Revenue code (IRC) conformity through Jan. 1, 2026, while continuing to decouple from bonus depreciation, select Tax Cuts and Jobs Act (TCJA) provisions and parts of H.R. 1. By contrast, New Mexico’s rolling conformity will adopt key H.R. 1 provisions, though S.B. 151 decouples certain federal rules and requires full Net Controlled Foreign Corporation Tested Income (NCTI) inclusion beginning Jan. 1, 2027.
  
  

• IRS announces tax filing extension for DHS employees
  Treasury and the IRS announced tax filing relief for Department of Homeland Security (DHS) personnel affected by the ongoing shutdown, citing the financial and administrative burdens placed on employees who continue to work without pay. Impacted DHS personnel will receive an automatic 30‑day filing extension — moving the deadline to May 15, 2026 — with penalty and interest relief included.

• State‑triggered federal tax disaster relief: Flyer & governor letter template
  Enacted July 24, 2025, the Filing Relief for Natural Disasters Act allows governors to request discretionary federal tax filing and payment relief for state‑declared disasters, separate from automatic presidential relief. Download a flyer for an overview of the two‑step state‑trigger process and access a governor letter template to request federal tax filing and payment relief under Sec. 7508A(c).
  
  

• 4 million children have been signed up for Trump Accounts with 1 million claiming the $1,000 pilot program contribution
  On March 31, 2026, the IRS announced that more than 4 million children have been enrolled in tax‑favored Trump Accounts, including over 1 million covered by elections for the $1,000 pilot program contribution. Eligibility for the $1,000 contribution is based on the child’s date of birth.
  
  

• State tax update: Utah rate reduction and permanent PTET election
  S.B. 60, signed March 23, 2026, retroactively lowers Utah’s corporate and individual income tax rates from 4.50% to 4.45% for tax years beginning on or after Jan. 1, 2026. H.B. 77, also signed March 23, 2026, permanently extends Utah’s passthrough entity tax (PTET) election for tax years beginning on or after Jan. 1, 2022. Explore all state pages in the State and local tax (SALT) Roadmap.

• State tax update: Indiana and H.R. 1 conformity
  Indiana generally follows static conformity to the IRC as of Jan. 1, 2023, but has selectively conformed to three H.R. 1 provisions — the adoption tax credit, certain energy property recovery periods and the telehealth safe harbor — through July 4, 2025. The state does not conform to the remaining H.R. 1 provisions for 2026, requiring return adjustments. Explore all state pages in the SALT Roadmap.
  
  

• IRS watchdog cites resource limits, duplication in partnership audits
  Limited resources and a duplicative review process contributed to IRS problems with auditing large partnerships, a government watchdog said in a review issued earlier this month. Read more.

• State tax update: Ohio updates IRC conformity date
  Ohio updated its IRC conformity date to March 5, 2026, incorporating federal tax law changes enacted through that date, including H.R. 1. For tax years ending between March 7, 2025, and March 5, 2026, taxpayers may irrevocably choose which federal provisions apply, though some Ohio-specific adjustments may be required. Explore all state pages in the SALT Roadmap.
  
  

• Before mailing — New USPS postmark changes: FAQs + client alert
  Effective Dec. 24, 2025, the USPS clarified that a postmark generally reflects when mail is first processed — not when it’s dropped off or accepted — creating potential risks for time‑sensitive tax filings. Access new FAQs explaining what changed, why it matters and steps to help reduce late‑filing risk. A downloadable client alert is also available to share with clients.
  
  

• No bank account on file? IRS Notice CP53E
  Following a March 25, 2025, executive order to phase out paper checks by Sept. 30, 2025, the IRS announced the end of paper refund checks beginning that date and later issued FAQs in January 2026 to explain the transition to electronic payments. Now’s the time to flag for clients that the IRS will issue Notice CP53E to taxpayers who do not have a bank account on file, outlining next steps for receiving funds.
  
  Check out our FAQs for more information.
  
  

• Tax extension client communications
  During the height of busy season, now’s the time to think strategically about which clients may be good candidates for an extension. Sending an extension reminder letter can help start that conversation early and keep expectations clear. You can also share the Tax Extension FAQ for Clients to support those discussions and address common questions and misconceptions up front.
  
  

• The electronic payments toolkit: Help clients transition smoothly
  The IRS has released Fact Sheet 2026‑02 outlining the shift to electronic payments under the March 2025 Executive Order (EO), which ends most paper checks — including tax refunds — by Sept. 30, 2025, and encourages electronic payments whenever practical. To help practitioners guide clients through this transition, we’ve assembled client‑ready resources including a Direct Pay visual step‑through, a downloadable electronic‑payment guide, a client alert and FAQs.
  
  Access the AICPA’s IRS Practice & Procedures library for more guidance, tools and timely updates to support your practice and your clients.

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