Advertise on podcast: Federal Tax Update Podcast

This week we look at: Congress passes H.R. 9496, creating new IRC §7511 relief for hostages and wrongful detainees. Rev. Proc. 2026-20 gives investment trusts holding digital assets a safe harbor for staking. California OTA rejects FTB's hot asset theory for nonresident partnership interest sales. Rev. Rul. 2026-18 publishes the SIFL rates for second-half 2026 employer aircraft flights. Tax Court sustains bank-deposits income, denies Cohan estimates, and abates penalty in Rahman. Proposed regs implement OBBBA changes to the Section 36B premium tax credit and APTC rules. T.D. 10059 finalizes the back-end basis adjustment rule for intragroup Section 357(c) liabilities. IRS postpones deadlines to February 2027 for Hurricane Isaias victims in Alabama and Florida. Court of Federal Claims denies ERC for a staffing agency in Southern Arizona Health Services. T.D. 10060 lets the IRS contract for card payment fees, recouped through a reimbursement fee.

This week we look at: Informal claim and COVID-19 disaster relief save an untimely-looking IRA refund suit in Singh. IRS recasts "Section 351 conversion" ETF transactions as taxable exchanges in Rev. Rul. 2026-20. Proposed regs implement a four-year installment election for farmland sales to young farmers. A corporate Offer-in-Compromise caps an officer's Trust Fund Recovery Penalty liability in Amodio. Treasury completes automatic enrollment in Trump Accounts under new Section 530A regulations. Sevillo Fine Foods: three independent grounds doom an ERC claim based on port congestion delays. Tax Court holds Form 872-T cannot terminate a fixed-date Form 872 extension in Fine v. Commissioner. New IRS notice extends tax deadlines to September 2027 for Israel conflict-affected taxpayers. Congress sends the National Taxpayer Advocate independent legal counsel in H.R. 997. New regulations build the infrastructure for the $1,700 Section 25F scholarship tax credit.

This week we look at: Tax Court Applies Equitable Tolling to BBA Partnership Petition Deadlines -- Kings Road Property District Court Voids VIBIR's Net Investment Income Tax Assessment -- Perkins IRS Notice 2026-55 Seeks Comments on Opportunity Zone Rules for Housing Developers Hurricane Michael Casualty and Charitable Deductions Fail for Lack of Substantiation -- Williams Treasury Raises the Estate Tax Closing Letter User Fee to $76 -- TD 10055 Tax Court Finds Proper Mailing Despite a Defective Form 3877 -- Lindsey Unsubstantiated Insider Loan Triggers 225-Percent Excise Tax Exposure -- Jagannath

This week we look at: Tax Court Warns of AI Drafting Pitfalls in a CDP Lien Withdrawal Case -- Moore Altering the Perjury Jurat Dooms a Refund Suit -- Johnson v. IRS IRS Extends the Involuntary Conversion Period for Drought-Hit Livestock Sales H.R. 9500 Would Restore and Expand Personal Casualty and Theft Loss Relief Second Circuit Rejects Form Over Function for SECA Tax -- Soroban Capital Partners H.R. 5334 Expands the Educator Expense Deduction to Early Childhood Teachers

This week we look at: Final Regulations Restore the Car Loan Interest Deduction Under T.D. 10054 Fourth Circuit Affirms $2.9M Willful FBAR Penalty -- United States v. Rund Tax Court Clarifies BBA Extension Mechanics -- Katanga Properties Treasury Proposes Sweeping QOF Certification and Reporting Regulations Proposed Regs Allocate Foreign Source Deductions Under Sections 250 and 904 Unrestricted $16.5M Art Deal Funds Are Taxable Income -- Tunkl v. Commissioner

This week we look at: Federal Circuit Bars Treaty FTCs Against the NIIT -- Bruyea and Christensen Financial Disability Tolling and Third-Party Authorization -- Goldman v. United States OIC Public-Policy Rejections Upheld -- Filipowski v. Commissioner Substantiation and Alter-Ego Doctrine -- Hank Risan v. Commissioner Codifying Racial Nondiscrimination for Private Schools -- Proposed Section 1.501(c)(3)-2 IRS's Certified-Mailing Burden of Proof -- Wales v. Commissioner Automatic Accounting Method Changes for R&E and Construction -- Rev. Proc. 2026-32

This week we look at: Zero-Return Form 1065 Filings and the Beard Test (IRS CCA 202634014) Full Payment Rule & Presumption of Correctness -- Pellegrino v. United States Pro Rata Share Determinations Under OBBBA -- Proposed Regulations (REG-115646-25) Treaty Exclusivity for Pooled Investments -- South Saskatchewan Community Foundation v. U.S.

This week we look at: Form 1041-A Relief for Passthrough Charitable Deductions (REG-109082-25) Vested Development Rights & Easement Valuation — Malibu Valley Land v. Commissioner First Circuit Bars Equitable Tolling of Section 6213(a) — Kyick Holdings v. Commissioner PRWORA Immigration Restrictions on Refundable Credits (REG-119882-25) Single-Employer DB Pension Funding Proposed Regulations (REG-107855-25) Excluded Property Sales Income Under Section 250 (REG-117130-25) Section 163(j) Business Interest Limitation Update — Fact Sheet FS-2026-14 Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366) IRS Ends Uniform Easement Settlement Initiative, Creates Office of Conservation Easements Trump Account Eligible Investment Rules — Proposed Regulations (RIN 1545-BS14)

This week we look at: Unpacking the Saver's Match: Technical Guidance and Operational Frameworks Under Notice 2026-48 Harmonizing Section 3406 Backup Withholding with Section 6050W De Minimis Reporting Thresholds The High Bar for Equitable Tolling in Tax Practice: The Eighth Circuit's Final Ruling in Boechler, P.C. Employer Contributions to Trump Accounts and Nondiscrimination Rules under REG-101355-26 The Perpetual Burden of Carryover Substantiation: AMT Credits and Recordkeeping in Beacom v. Commissioner Equitable Tolling of Tax Court Filing Deadlines: Maniktala v. Commissioner (8th Cir.) Standardizing Retirement Plan Rollovers and Trustee-to-Trustee Transfers under SECURE 2.0: Notice 2026-49 Unmasking the $70 Million Dubai Fraud: Section 165 Theft Loss Deductions in Deutsch v. Commissioner Treasury Proposes Substantive Section 987 Relief for Controlled Foreign Corporations (REG-103844-26) Rehearing Reversal: The Fifth Circuit's Management Test for the Limited Partner Exception (K Alain, L.L.L.P.) The Crucial Role of Highest and Best Use in Conservation Easement Valuations: Evans v. Commissioner

This week we look at: Transitioning Foreign Tax Allocations and Implementing the Ten Percent Credit Disallowance Under Section 960(d)(4) Trustee-to-Trustee Transfers of Inherited IRAs Through an Estate: Technical Analysis of PLR 202631001 Federal Courts Lack APA Jurisdiction Over Foreign Gift Penalty Disputes: The Adequate Alternative Remedy Barrier Sourcing Executive Termination Payments: Analyzing the Bifurcated Sourcing of Severance and RSUs in the Appeal of Otting The Permanent Section 45S Paid Family and Medical Leave Credit: Analyzing the Statutory Wage Method Mechanics and the New Premium Method Under Notice 2026-28 The Tax Court Open Door: Why the BBA Partnership Petition Deadline Is Not Jurisdictional Commingled Funds, Unsubstantiated Deductions, and the Binding Form of Transactions: A Technical Tax Analysis of Reed v. Commissioner The Safe Harbor That Wasn't: Deconstructing the Anti-Abuse Rule in SIH Partners LLLP v. Commissioner The Evolution of Qualified Overtime Compensation Deductions: Analyzing IRS Fact Sheet FS-2026-13 and Its Practical Implications

This week we look at: IRS Reinstates Tax Deferral on Variable Annuity Term Certain Options: Reconsideration and Reversal in PLR 202630002 Understanding the ERC Pleading Standard: Federal Claims Court Deferral in I Health and Life Insurance Services Predecessor Losses, the Lonely Parent Rule, and the Limits of Economic Reality: Analysis of HBM Holdings Co. v. Commissioner Double Books and Disguised Payees: Corporate Personal Expenses and the Civil Fraud Penalty in Prezioso v. Commissioner

This week we look at: Valuation of Remainder Interest Gifts Upon Trust Termination: State Law and Net Gift Adjustments in Lewis v. Commissioner Revenue Procedure 2026-26: Technical Overview of 2027 Indexing Adjustments for Premium Tax Credits and Affordability Standards Limitations of Interest Abatement Claims Under I.R.C. § 6404(e)(1) in the Context of ERC-Driven Amendments Section 6015(c) Relief and the Substantiation Trap: An Analysis of Anderson v. Commissioner Navigating the AICPA's New Tax Services Independence Standards: A Guide for Practitioners

This week we look at: Partnership Recourse Rules: Conditional DROs will not establish EROL under § 1.752-2. Mileage Rate Adjustment: Business standard mileage rate rises to 76 cents on July 1, 2026. Business Tax Account: Modernized self-service portal expands features but requires active annual maintenance. Litigation Legal Fees: FCRA settlements are taxable gross income without above-the-line deduction. Corporate Reorganizations: Tax Court invalidates regulation limiting 100% DRD in post-Loper Bright era. ERC Litigation Realities: Exhaustion loophole rejected; notice pleading standards approved in refund suits. Conservation Easements: Valuation must be grounded in immediate local market demand, not speculation.

This week we look at: Transitioning from First Time Abate (FTA) to Automatic Exemption from Penalty (AEP) Strict Enforcement of Tax Refund Statutes of Limitations Employee Retention Credit (ERC) Refund Claims & Pleading Standards Pandemic-Era Persistence of New York's Convenience of the Employer Rule Invalidity of Treasury Regulation Section 1.951A-2(c)(5) Non-Shareholder Capital Contributions vs. Compensation Final Section 1035 Exchange & Corporate Reorganization Regulations Reclassification of Abusive CRAT Structures as Listed Transactions The National Taxpayer Advocate's Perspective on AEP

This week we look at: Section 7508A(d) and Interest on Pre-COVID-19 Disaster Tax Deficiencies The Soroban Capital Partners SECA Tax Controversy Pleading Requirements for the Employee Retention Credit (Tapestry Senior Housing) ERC Causation and the Essential Business Hurdle (RAAM Construction) The Section 530A Transfer Tax Safe Harbor (Rev. Proc. 2026-25) Penalty Supervisory Approval Verification in CDP (Besicorp Group) Retroactive ERC Deadlines & Constitutional Challenges