Illinois Service Occupation Tax Changes for Servicepersons and Marketplace Facilitators

The Illinois Department of Revenue has issued guidance detailing changes to the Service Occupation Tax effective January 1, 2026. The bulletin clarifies that the 200-transaction threshold will be removed for out-of-state servicepersons and marketplace facilitators, and introduces destination-based sourcing for certain sales of service. These changes are outlined in Public Act 104-0006.

Motor Fuel Use Tax Rate Change

The Illinois Department of Revenue has announced changes to the Motor Fuel Use Tax rates, effective January 1, 2026, through June 30, 2026. These updated rates apply to all International Fuel Tax Agreement (IFTA) licensees operating in Illinois.

Illinois Film Production Withholding Tax Changes

The Illinois Department of Revenue has issued guidance clarifying changes to film production withholding income tax requirements. Beginning December 12, 2025, both production companies and loan-out companies have specific responsibilities for withholding, reporting, and remitting Illinois income tax on compensation for services performed in the state.

Illinois Income Tax Changes and Scam Alert

The Illinois Department of Revenue (IDOR) issued a bulletin (FY 2026-15) detailing changes to 2025 Illinois Income Tax forms and schedules for individuals and businesses, and 2026 withholding tax forms. The bulletin also includes a scam alert regarding fraudulent communications impersonating IDOR.

Illinois Tax Filings Affected by USPS Postmark Changes

The Illinois Department of Revenue (IDOR) issued a notice regarding changes to United States Postal Service (USPS) postmarks that could impact the timely filing of Illinois tax returns and payments in 2026. Taxpayers are advised to file and pay electronically or mail returns earlier to avoid late penalties.

IRS Grants Ruling on Substitute Mortality Tables for Pension Plans

The IRS has granted a ruling allowing a taxpayer to use substitute mortality tables for pension plan computations under section 430 of the Internal Revenue Code. This approval is effective for up to 3 plan years beginning with the 2026 plan year.

IRS denies tax exemption for IRC Section 501(c)(6) organization

IRS denies tax exemption for IRC Section 501(c)(6) organization

IRS Internal Revenue Bulletin 2026-07

The IRS published Internal Revenue Bulletin 2026-07, featuring guidance on disciplinary sanctions for tax practitioners, disclosure requirements for reducing tax understatements, and amendments related to SECURE 2.0 Act provisions for retirement plans. This bulletin includes updates to revenue procedures and notices affecting tax return preparers and retirement account administration.

IRS Proposed Regulations on Clean Fuel Production Credit

The IRS has issued proposed regulations concerning the Section 45Z Clean Fuel Production Credit, which applies to clean transportation fuel produced domestically after December 31, 2024. These regulations address eligibility, emissions rates, and claim filing for domestic fuel producers and credit claimants.

IRS Interest Rates for April 1, 2026

The IRS has announced the interest rates for tax underpayments and overpayments for the calendar quarter beginning April 1, 2026. These rates include specific percentages for general underpayments, overpayments, large corporate underpayments, and a reduced rate for corporate overpayments exceeding $10,000.