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:

• 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:

• 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:

• 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:

• Relief from Ineffective S Corporation and QSub Elections
• Procedural and Jurisdictional Limits in Challenging IRS Guidance
• Medicaid Gross Receipts, Cohan Estimations, and Professional Reliance
• Standards and Deceit in Supervised Release
• Transitional Guidance on Qualified Opportunity Zones

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:

• Application of New Section 68 to Trusts and Estates
• Assessing the Risks of Hindsight in Late § 475(f)(1) Elections
• The Eradication of the 5% Safe Harbor (Clean Energy)
• Limits of § 2036(a) and Tax-Motivated Transfers
• Section 183 Hobby Losses & Penalties
• New Section 25F Education Freedom Tax Credit

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