Tax

IRS Proposed Rule on Excise Tax Remittance Transfers - Comment Deadline June 12

The IRS has published a proposed rule on excise tax remittance transfers for public comment. The comment deadline is June 12. Taxpayers affected by excise tax remittance requirements should review the proposal and submit comments by the deadline.

Proposed Excise Tax Regulations Under IRC Section 4475 for Remittance Transfers

The IRS proposes regulations under Internal Revenue Code section 4475 to implement a 1 percent excise tax on certain remittance transfers occurring after December 31, 2025. The proposed rules would revise 26 CFR part 40 (Excise Tax Procedural Regulations) and add provisions to 26 CFR part 49 (Facilities and Services Excise Tax Regulations), providing definitions, collection procedures, and rules for determining qualifying payment instruments.

Definition of Qualified Tips for Income Tax Deduction Under Section 224

The IRS has issued final regulations implementing Section 224 of the Internal Revenue Code (added by the One, Big, Beautiful Bill Act of July 4, 2025) to define "qualified tips" for an income tax deduction. The rule identifies occupations that customarily and regularly received tips on or before December 31, 2024, and establishes requirements for the deduction. These regulations affect individuals who receive tips as part of their occupation and are effective June 12, 2026.

American Compass Tariff Claims Break Down Under Scrutiny

The Tax Foundation published an analysis examining American Compass's 'Tariff Tally' evaluation of economic developments since the imposition of Trump's global tariff policy. The analysis finds that American Compass's theoretical framework contains flawed and inconsistent connections between tariffs, prices, manufacturing output, capital investment, and job creation. The research contends that American Compass presents a selective and asymmetric interpretation of economic data, crediting tariffs when indicators are positive while attributing poor results to other factors or timing.

Foreign Insurance Companies Asset Percentages, Investment Yields 2026

Rev. Proc. 2026-19 provides updated domestic asset/liability percentages and domestic investment yields for foreign insurance companies to compute minimum effectively connected net investment income under IRC § 842(b) for taxable years beginning after December 31, 2024. Foreign life insurance companies use 128.2% and 2.1%; foreign property and liability insurance companies use 202.4% and 2.2%.

April 2026 Weighted Average Interest Rates, Yield Curves, and Segment Rates

The IRS published Notice 2026-26 providing the April 2026 segment rates used for single-employer and multiemployer pension plan funding calculations under IRC Sections 430 and 431. The document includes the March 2026 spot segment rates (first: 4.24%, second: 5.35%, third: 6.25%), the 24-month average segment rates for April 2026 (adjusted: first 4.75%, second 5.25-5.27%, third 5.84%), and the corporate bond yield curve for March 2026.

Submit Evidence for Child Benefit via Online Form

HMRC has published guidance for Child Benefit applicants on how to submit requested evidence via an online form. Applicants who receive a letter requesting evidence must submit it within 14 days of receiving the letter. If evidence is not provided within this timeframe, HMRC will make a decision based on existing information. Applicants will receive a response letter within 15 working days confirming eligibility.

Countries Improve Tax Systems Through National Reforms: Key Findings from 2025 Index

Tax Foundation analysis examines the 10-year trajectory of the International Tax Competitiveness Index (2016-2025), identifying Greece (+12), the United States (+10), and Hungary, Canada, and Mexico (+5 each) as the largest overall improvers. The paper argues that national legislative reforms—lower tax penalties on new investment, simpler rate structures, broader consumption taxes, and cleaner cross-border rules—delivered more reliable improvements than multilateral approaches such as the OECD BEPS project and Two-Pillar Solution.

Proposed Regulations on New 1% Remittance Transfer Tax Under One, Big, Beautiful Bill

The Department of the Treasury and IRS have issued proposed regulations clarifying the application of the new 1% excise tax on remittance transfers under the One, Big, Beautiful Bill. The tax, effective January 1, 2026, applies to cash, money orders, cashier's checks, and similar physical instruments sent from the US to foreign recipients. Remittance transfer providers are required to collect the tax from senders, make semimonthly deposits, and file quarterly returns on Form 720.

Final Regulations List 70+ Occupations for Tip Deduction Under No Tax on Tips Provision

The Department of the Treasury and IRS issued final regulations implementing the 'No Tax on Tips' provision from the One, Big, Beautiful Bill. The regulations provide a list of more than 70 occupations where workers customarily receive tips and define 'qualified tips' that eligible taxpayers may claim as a deduction. The final regulations expand the occupation list to include visual artists, floral designers, and gas pump attendants.

Cancel Economic Crime Levy Registration After Insolvency

HMRC published guidance enabling insolvency practitioners to cancel Economic Crime Levy registrations for entities that have become insolvent. The guidance applies to trustees in bankruptcy, liquidators, and administrators. The online process requires specific entity details, and HMRC states it will process forms within 28 working days.

Economic Crime Levy Insolvency Process for Insolvency Practitioners

HMRC has published Insolvency Practitioner Bulletin 1 (2026) establishing a new digital process for submitting Economic Crime Levy returns and deregistering entities when businesses become insolvent. The bulletin provides guidance specifically for insolvency practitioners on complying with Economic Crime Levy obligations through HMRC's online services. The guidance was published on 10 April 2026.

Economic Crime Levy Insolvency Guidance for Practitioners

HMRC published guidance for insolvency practitioners on procedures when an entity liable for the Economic Crime Levy becomes insolvent. The guidance directs practitioners to follow specific reporting procedures to HMRC and provides a link to detailed instructions on GOV.UK. This affects insolvency practitioners handling cases involving entities registered for the Economic Crime Levy.

Set Up a Limited Company Step by Step Guide

HMRC published a step-by-step guide on gov.uk explaining how to set up a limited company in the UK. The 10-step guide covers choosing a company type, appointing directors and shareholders or guarantors, identifying People with Significant Control (PSC), preparing formation documents, and registering with Companies House. The guidance is informational and does not create new legal obligations.

Ready, Steady, File! HMRC Newsletter Edition 4

HMRC has published the fourth and final edition of its 'Ready, Steady, File!' newsletter for participants of the Making Tax Digital for Income Tax 2025 testing programme. The newsletter provides updates on latest news, resources, and milestones in the beta testing journey. This edition marks the conclusion of the testing programme newsletter series.

Michigan 24% Wholesale Marijuana Tax Effective January 2026

The Michigan Department of Treasury announces a new 24% wholesale tax on recreational marijuana sales and transfers effective January 1, 2026. The tax applies to the wholesale price of marijuana sold or transferred in Michigan's adult-use market. Revenue from the tax will be deposited into the neighborhood road fund for infrastructure improvements. Treasury has published formal guidance to help cannabis businesses understand compliance requirements.

Recreational Marijuana Taxes Across US States, 2026

The Tax Foundation published its 2026 analysis of recreational marijuana excise tax rates across US states that have legalized cannabis. The report catalogs state-by-state tax structures including weight-based taxes (e.g., Alaska's $50/oz. mature flowers), ad valorem taxes (e.g., Arizona's 16% on retail sales), and THC-content-based taxes (e.g., Connecticut's $0.00625 per mg THC in plants). Tax structures vary significantly, with some states using hybrid approaches combining multiple tax bases.

Maine Millionaire Tax Would Harm Small Business Competitiveness

The Tax Foundation published analysis of Maine's proposed 9.15 percent top income tax rate on earnings above $1 million, which would raise $74 million annually from approximately 2,631 filers. The analysis warns that the two percentage point surtax on high earners would primarily affect pass-through small business owners, as 70 percent of Maine filers with over $1 million in adjusted gross income report pass-through business income.

Revenue Ruling 2026-8: SIFL Aircraft Valuation Formula; Announcement 2026-8: APMA Program Report

The IRS published Rev. Rul. 2026-8 setting forth the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge for the first half of 2026 for valuing non-commercial flights on employer-provided aircraft under 26 CFR 1.61-21(g). The IRS also published Announcement 2026-8, its twenty-seventh annual report on the Advance Pricing and Mutual Agreement (APMA) Program covering calendar year 2025 activities.

Form 8609 Instructions Updated for Tax-Exempt Bond Projects

The IRS has issued updated instructions for Form 8609 (Low-Income Housing Credit) reflecting changes made by the One Big Beautiful Bill Act for tax-exempt bond financed projects after 2025. The updates modify the thresholds for when no housing credit allocation is required when buildings are financed with tax-exempt bonds subject to volume cap under section 146. Specifically, a 50% aggregate basis threshold remains, while a new 25% threshold is added for bonds issued after 2025 meeting additional conditions (at least 5% of aggregate basis financed, building placed in service after 2025). For projects meeting these criteria, filers must leave Line 1a blank on Form 8609.

Excise Tax on Remittance Transfers

The IRS and Treasury Department have published a proposed rule (REG-114499-25) to implement an excise tax on remittance transfers under 26 CFR 40 and 26 CFR 49. The rule defines remittance transfers, establishes tax rates, and outlines reporting requirements for providers of remittance transfer services. Comments are being accepted through June 12, 2026.

Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips (T.D. 10044)

The IRS published final regulations (T.D. 10044) under 26 CFR Part 1 defining "qualified tips" for purposes of the FICA tip tax. The regulations establish which occupations customarily and regularly receive tips and the requirements for tips to qualify under the Internal Revenue Code. These rules affect employers in tip-receiving industries who must withhold and pay FICA taxes on qualified tip income.

Gas Use Tax Holiday, April 8 – May 8, 2026

Indiana DOR announces 30-day suspension of Gas Use Tax collection from April 8 through May 8, 2026, pursuant to Governor Mike Braun's energy emergency executive order. The suspension applies only to Gas Use Tax; Federal Gas Tax and Indiana Excise Tax remain in effect. Distributors must stop collecting Gas Use Tax from retailers and report exempt sales on GT-103 filings; retailers who were charged the tax during the suspension period must work with distributors to reconcile.

Vermont Issues $100M Tax Refunds, $800 Average

The Vermont Department of Taxes announced it has issued over $100 million in personal income tax refunds to date, with an average refund of $800 (up $36 from last year). The department is encouraging approximately 40,000 non-filing Vermonters who may be eligible for refundable tax credits such as the Vermont Earned Income Tax Credit or Vermont Child Tax Credit to file before the April 15 deadline.

State Controller Cohen Available for Tax Day Media Interviews

The California Franchise Tax Board announced that State Controller Malia M. Cohen will be available for live and taped media interviews on Tax Day, April 15, 2026, from 7 AM to 9 AM at FTB headquarters in Sacramento. The availability aims to provide last-minute tax filing tips and information about California tax credits and scam prevention to media outlets and, through them, California taxpayers.

Draft Regulations: Carbon Border Adjustment Mechanism Emissions and Verification

HMRC has published draft secondary legislation for the UK Carbon Border Adjustment Mechanism (CBAM), covering emissions monitoring and verification requirements. The consultation seeks feedback on embodied emissions provisions, monitoring standards, and verification procedures for UK importers of aluminium, cement, fertilisers, hydrogen, and iron and steel goods from 1 January 2027. Responses are due by 21 May 2026.

HMRC February 2026 Performance Update

HMRC published its February 2026 performance update for fiscal year 2025-2026, reporting on performance against strategic objectives including tax collection, customer service delivery, and compliance outcomes. The report includes detailed performance data spreadsheets and metric definitions.

Carbon Border Adjustment Mechanism CBAM Communications Resources Pack

HMRC published communications resources for trade associations and industry bodies to cascade CBAM information to businesses importing goods from five specified sectors: aluminium, cement, fertiliser, hydrogen, and iron and steel. The materials include sample emails, social media messaging, and leaflets available in English and Welsh. CBAM comes into effect on 1 January 2027 and affects UK importers of covered goods from these sectors.

Governor Green Authorizes Tax Filing Deadline Extension to July 20 for Kona Low Victims

Hawaii Governor Josh Green authorized the Department of Taxation to extend the state income tax filing and payment deadline from April 20, 2026, to July 20, 2026, for taxpayers impacted by the Kona Low storms. Affected residents and businesses may request waiver of late file and late payment penalties and interest by submitting Form L-115.

How to Report Other Expenses on the Updated Form 8825

IRS issued guidance on reporting other expenses on the updated Form 8825 for tax year 2025. Partnerships and S corporations not required to file Schedule M-3 must now use Form 8825 line 17 for expenses previously reported on line 15. Schedule M-3 filers must attach Schedule A (Form 8825) and report totals on line 17, with additional expenses on line 30 of Schedule A.

Form 8886 mailing address updated to Ogden UT

The IRS updated the mailing address in the Instructions for Form 8886 (Reportable Transaction Disclosure Statement). The address on page 3 under 'When and How To File' is now Internal Revenue Service, 1973 Rulon White Blvd., OTSA Mail Stop 4915, Ogden, UT 84201. This change affects taxpayers filing paper Form 8886 disclosures who must use the new Ogden address for submissions.

Gas tax holidays are counterproductive, research shows

Gas tax holidays are counterproductive, research shows

Smaller corporate tax bills reflect proper investment treatment, not new loopholes

Tax Foundation op-ed explains that smaller corporate tax bills under the One Big Beautiful Bill Act (OBBBA) reflect proper investment treatment through permanent 100% bonus depreciation and R&D expensing, not new tax loopholes. The analysis argues these provisions correct a major flaw in the tax code by allowing businesses to deduct investment costs immediately.

Georgia March Net Tax Revenues $2.62B, Up 4.8%

Georgia DOR reports March 2026 net tax collections of $2.62 billion, up $120.4 million (4.8%) from March 2025. Individual income tax rose $3.3 million (0.3%) and corporate income tax increased $44.9 million (13.7%). Sales and use tax net collections grew $71.5 million (10.3%). Year-to-date collections through Q3 reached $24.5 billion, up $463.6 million (1.9%) from the prior year.

Completing CT600P for Creative Industries Tax Reliefs

HMRC published guidance on completing CT600P supplementary pages for creative industry tax reliefs, effective 8 April 2026. The guidance covers Audio-Visual Expenditure Credit (AVEC), Film Tax Relief, High-End Television Tax Relief, Children's Television Tax Relief, Animation Tax Relief, Video Games Expenditure Credit, Video Games Tax Relief, Theatre Tax Relief, Orchestra Tax Relief, and Museums and Galleries Exhibition Tax Relief. Companies claiming these reliefs must complete the CT600P form with specific expenditure and credit calculations.

Compliance Checks: Anti-avoidance Information Notices — CC/FS88

HMRC published factsheet CC/FS88 explaining anti-avoidance information notices used in compliance checks. The guidance clarifies taxpayers' obligations when HMRC issues formal information notices under anti-avoidance provisions. Factsheets reflect HMRC's position at time of writing and are for guidance purposes only.

Claim Unused Allowance for Agricultural or Business Property Relief (IHT437)

HMRC has published form IHT437 (effective 8 April 2026) enabling executors and personal representatives to claim and transfer unused 100% agricultural or business property relief allowances from a deceased spouse or civil partner to the current estate. The form must be submitted alongside form IHT400 for inheritance tax purposes.

Chief of Staff Rianna Matthews-Brown departing April 30

Comptroller Brooke Lierman announced Chief of Staff Rianna Matthews-Brown will depart the Office of the Comptroller of Maryland on April 30, 2026. During her tenure, Matthews-Brown helped secure $1.5 million in EITC outreach funding, established the Office of the Taxpayer Advocate in 2025, and led the agency's first statewide EITC awareness campaign.

Kane County Motor Fuel Tax increase effective July 1st

The Illinois Department of Revenue announces that Kane County has increased its County Motor Fuel Tax rate from 5 cents to 8 cents per gallon, effective July 1, 2026. The tax applies to all retail motor fuel sales within Kane County under authority of the County Motor Fuel Tax Law (55 ILCS 5/5-1035.1). Fuel distributors and retailers must update systems to reflect the 3-cent per gallon increase for sales on or after July 1, 2026.

Kane County Motor Fuel Tax Rate Increase Effective July 2026

Illinois Department of Revenue bulletin announcing Kane County's increase in County Motor Fuel Tax from 5 cents to 8 cents per gallon, effective July 1, 2026. All registered retailers selling motor fuel in Kane County must collect the new rate on retail sales made on or after this date.

Missouri Sales Tax Holiday April 19-25, Energy Star Appliances Exempt

Missouri DOR announces the 2026 Show Me Green Sales Tax Holiday from April 19-25. State sales tax will be waived on the first $1,500 of qualifying ENERGY STAR certified appliances including clothes washers, dryers, dishwashers, air conditioners, and refrigerators. All Missouri cities, counties, and districts participate in this annual event.

Simplified Municipal Telecommunications Tax Rate Changes Effective July 1, 2026

The Illinois Department of Revenue announces that effective July 1, 2026, select municipalities will impose a Simplified Municipal Telecommunications Tax. The combined rate consists of the State Telecommunications Excise Tax rate of 8.65 percent plus the local Simplified Municipal Telecommunications Tax rate of up to 6.00 percent outside Chicago.

IDOR Urges Taxpayers to Act Ahead of April 15 Filing Deadline

The Illinois Department of Revenue issued a press release on April 7, 2026, reminding taxpayers to file their 2025 state individual income tax returns by the April 15 deadline. IDOR encouraged early filing to avoid last-minute issues, particularly for those filing by mail. The release also included a scam alert warning about fraudulent text messages and websites impersonating the department.

Long-Term Care Premiums Paid Statement - Information Collection Comment Request

The IRS published a notice seeking public comments on a new information collection request for Form 1099-LPS (Long-Term Care Premiums Paid Statement). The form will be used by issuers of certified long-term care insurance policies to report contract information under IRC sections 401(a)(39)(E) and 6050Z. The notice requests comments on burden estimates, utility, and ways to minimize paperwork burden. Comments are due by June 8, 2026.

EU VAT Gap €773.5B, Quadruple EU Budget

The Tax Foundation published analysis finding that the EU's VAT actionable policy gap—the additional revenue that could be collected by eliminating reduced rates and certain exemptions—reached €773.5 billion in 2024. This represents six times the compliance gap and is quadruple the EU's annual budget. The analysis breaks down how 27.1% of potential VAT revenue is lost through reduced rates (12 percentage points) and exemptions (15 percentage points).

OBBBA makes investment expensing permanent, boosting economic growth

The Tax Foundation analyzed the One Big Beautiful Bill Act's expansion of investment expensing provisions, including permanent bonus depreciation for equipment, permanent Section 179 small business expensing, and a new temporary Section 168(n) for manufacturing structures. The analysis found these provisions reduce the after-tax cost of investment by approximately 3.8% for corporations subject to the 21% tax rate.

North Carolina Tax Filing Deadline April 15

The North Carolina Department of Revenue issued a press release on April 7, 2026, reminding taxpayers that state individual income tax returns are due by April 15, 2026. The notice advises taxpayers to file electronically or by mail with proper postmark, pay any taxes owed by the deadline, and consider requesting an extension if unable to file on time.

Tax Commissioner Reminds Taxpayers to File Ahead of April 15 Deadline

North Dakota Tax Commissioner Brian Kroshus reminds individual income taxpayers to file by April 15 deadline or apply for extension via IRS Form 4868. As of April 6, over 282,000 of the expected 480,000 returns have been processed, with over 97% filed electronically. Taxpayers unable to file by the deadline should make estimated payments to avoid interest charges.

Housing Cost Amount Limitations for Foreign Earned Income Exclusion 2026

The IRS issued Notice 2026-25 providing adjusted limitations on housing expenses for qualified individuals claiming the foreign earned income exclusion under IRC Section 911 for tax year 2026. The notice updates location-specific housing cost limitations for expatriates, replacing the general $39,870 limitation with city-by-city amounts based on relative housing costs. For example, limitations range from $40,600 (Estonia Tallinn) to $114,300 (Australia Sydney) depending on location. The base housing amount for 2026 is $21,264.

Revenue Procedure 2026-14 - Qualified Opportunity Zone Nominations Procedure

The IRS issued Revenue Procedure 2026-14 to provide guidance to State CEOs on the procedural requirements for nominating population census tracts as Qualified Opportunity Zones (QOZs) for designation effective January 1, 2027. The guidance implements amendments made by Section 70421 of the One, Big, Beautiful Bill Act (OBBBA) to IRC Sections 1400Z-1 and 1400Z-2. Nominating authorities must follow the prescribed process to designate low-income community census tracts as QOZs.