The court sustained penalties under Secs. 6662(b)(6) and (i), finding that the transaction lacked economic substance under Sec. 7701(o) and that the taxpayer did not adequately disclose it.
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Tax
Tax Court upholds rejection of taxpayer’s proposed OIC and installment agreement
In a Collection Due Process case, the Tax Court held that IRS Appeals did not abuse its discretion in rejecting an offer in compromise and installment agreement that fell short of the taxpayer’s reasonable collection potential.
Not-for-profit pay faces broader tax risk
Because of the expanded excise tax on excess compensation, applicable tax-exempt organizations may need to rethink the structure of leaders’ and key employees’ pay packages.
Turning member insights into policy
From IRS notices to AI attestation, AICPA advocacy relies on member experience to push for practical policy solutions that serve CPAs, taxpayers, and businesses.
Sales tax doesn’t have to be this hard
AI now assists with product classification to tax categories, certificate capture and validation, address cleansing, monitoring statute and rule changes, anomaly detection, notice triage, and forecasting nexus risk, which reduces manual effort and cycle time while improving consistency.
Why AI needs to show its work
Understanding where an answer comes from ensures you’re ready when a partner, a client, or an examiner asks how you made a judgment call.
AI changes how accountants work, not what they do
Three years after tax professionals attended the AICPA National Tax Conference’s first session on generative AI, a speaker from the 2023 conference and a speaker at this year’s conference say the technology is changing how accountants work, not replacing them. They also say AI’s growing role in practice requires safeguards, oversight, and experienced professionals.
“Ghost preparers” tied to $179 million in potentially fraudulent refunds
A TIGTA report linked ghost preparers to $179 million in refund claims over two years. Its findings come as legislators consider the Taxpayer Assistance and Service Act, which would expand IRS oversight of paid tax return preparers.
AICPA: Trump account regulations make 2026 rollout difficult
Proposed regulations governing employer contributions to Trump accounts are “administratively burdensome” and make a 2026 rollout potentially difficult, the AICPA said. A letter to the IRS and Treasury asked for employers to be given more time and for the programs to be easier to administer.
Final regulations clear path for direct IRS card payments
The IRS on Friday issued final regulations implementing Taxpayer First Act provisions that would allow taxpayers to make credit and debit card tax payments directly to the IRS rather than through third-party payment processors. The final regulations adopt, without change, proposed regulations issued in July 2024.
IRS urged by national taxpayer advocate to pause Kwong claims denials
National Taxpayer Advocate Erin Collins urged the IRS to halt denials of claims tied to ongoing Kwong litigation, arguing that taxpayers could lose rights or pursue unnecessary litigation while courts continue to consider the case. The IRS has received more than 275,000 refund and abatement claims related to Kwong, she said.
IRS proposes regulations implementing premium tax credit changes
The IRS and Treasury proposed regulations implementing Sec. 36B premium tax credit changes enacted in H.R. 1, including new eligibility and verification requirements, reporting changes, and rules governing repayment of excess advance premium tax credits.
IRS grants Hurricane Isaias tax relief in Alabama, Florida
Taxpayers in parts of Alabama and Florida that sustained damage from Hurricane Isaias have until February to file various federal tax returns and make tax payments under disaster relief announced Wednesday by the IRS. The IRS said it will automatically identify taxpayers in the covered disaster areas and apply the relief.
Social Security wage base and COLA announced for 2027
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027 and increased the Social Security wage base to $192,300. The annual update also includes changes to retirement earnings limits and other indexed Social Security amounts that affect taxpayers and employers.
AICPA recommends IRS clarification of Form 8050
The AICPA asked the IRS to clarify that Form 8050, used to provide direct deposit information for tax refunds, will not be included in exempt organizations’ publicly available tax return filings. An AICPA letter said the change would reduce the risk of inadvertently disclosing sensitive banking information.
AICPA reminds states of disaster-relief process with filing deadline near
The AICPA is reminding states about the correct procedure to use to request disaster tax relief following Hurricane Isaias’ landfall just days before the Oct. 15 filing deadline.
Accounting’s future: Embrace change and build on trust
The 110th chair of the AICPA joins the JofA podcast for a conversation on Rise2040, the future of the profession, and why trust and adaptability will continue to be essential for finance leaders.
Treasury, IRS propose regulations for education tax credit
Treasury and the IRS proposed regulations for the education freedom tax credit, a new federal credit under Sec. 25F for contributions to organizations that provide scholarships to eligible elementary and secondary schools.
Senate approves taxpayer-focused reforms backed by AICPA
The Senate unanimously approved the Taxpayer Assistance and Service Act, a bipartisan package of 65 tax administration reforms backed by the AICPA. The measure now moves to the House.
Line items
IRS raises standard mileage rates for remainder of 2026 … IRS designates certain CRAT arrangements as listed transactions … Eligible taxpayers to get automatic IRS penalty relief … IRS offers gift tax safe harbor for contributions to Trump accounts … IRS outlines AI risks, Circular 230 duties for tax practitioners … Advocate: IRS had strong filing season for online taxpayers, weaker one for others
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