Category: Tax Legislation & Updates
-
The Return of the Itemized Deduction Limitation in 2026…
Under the Tax Cuts & Jobs Act (TJCA) the Pease limitation was suspended from 2018 – 2025. The Pease Limitation applied to high-income taxpayers and worked by reducing the value of a taxpayer’s itemized deductions by 3 percent for every dollar of taxable income above a certain threshold ($261,500 single; $313,800 married in 2017). In…
-
States Decoupling from the OBBBA
By now, most taxpayers and practitioners have heard about the One Big Beautiful Bill Act that was signed into law on July 4, 2025. However, what’s often overlooked is the state tax implications of the OBBBA. States operate separately from the federal government so they don’t have to honor the changes enacted by the federal…
-
What You Need to Know About the New Tip & Overtime Deductions for 2025
In late 2025, the IRS issued several important Notices providing guidance on how employees, gig workers, and employers should handle tips and overtime pay for the 2025 tax year. These deductions—created under the One Big, Beautiful Bill Act—will impact millions of U.S. workers. Below is a clear breakdown of what the new deductions are, what…
-
Transition Relief for Businesses Reporting Car-Loan Interest (OBBBA)
Today the Department of the Treasury and the Internal Revenue Service provided transitional guidance for businesses required to report car loan interest under the One, Big, Beautiful Bill. Notice 2025-57 provides penalty relief and guidance to certain lenders for new information reporting requirements for car loan interest received in 2025 under the OBBB. Under this guidance, the…
-
IRS Updates Automatic Accounting Method Changes
Overview On May 13, 2025, the IRS released Revenue Procedure 2025-23, updating the framework under which taxpayers can request automatic consent for changing their method of accounting. This new guidance modifies and expands upon the prior procedures in Rev. Proc. 2015-13 and the list of automatic changes under Rev. Proc. 2024-23. The updates are especially…