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Federal Tax Updates

Timely analysis of federal tax law changes, guidance, and developments affecting practitioners.

Self-Employed Health Insurance Deduction: Understanding the Eligibility Trap in IRC § 162(l)

Self-Employed Health Insurance Deduction: Understanding the Eligibility Trap in IRC § 162(l)

Can a self-employed taxpayer claim the self-employed health insurance deduction if they are eligible for coverage through the employer of a spouse but choose a different plan? The answer often surprises clients. The first article in our two-part series explains how IRC §162(l) determines eligibility for the deduction and offers practical guidance for explaining this commonly misunderstood rule.
USDA Final Rule Implements Significant Payment Limit and Eligibility Changes

USDA Final Rule Implements Significant Payment Limit and Eligibility Changes

The USDA’s Commodity Credit Corporation has issued a highly anticipated final rule. Published and effective June 2, 2026, the rule incorporates the payment-limit and eligibility modifications enacted under the One Big Beautiful Bill Act (OBBBA) into the federal regulations at 7 CFR Part 1400.
Prior §163(j)(7) Elections May Now Be Costing Clients Money

Prior §163(j)(7) Elections May Now Be Costing Clients Money

Recent tax law changes eliminated much of the benefit of electing out of the §163(j) business interest deduction limitation. IRS guidance now provides a limited opportunity for eligible businesses to revoke prior elections, but the window closes October 15, 2026.
Potential COVID-Era Refund Claims: Why July 10 is on Practitioners’ Radar

Potential COVID-Era Refund Claims: Why July 10 is on Practitioners’ Radar

The Tax Court decision in Kwong v. United States has sparked interest in potential COVID-era refund claims. Although the case is being appealed, some practitioners are filing protective refund claims before the July 10 deadline to preserve possible refund opportunities. This article explains why the deadline matters and what practitioners may want to review now.
IRS Provides Blanket Underpayment Penalty Relief for Qualifying Farmers Filing 2025 Returns

IRS Provides Blanket Underpayment Penalty Relief for Qualifying Farmers Filing 2025 Returns

The IRS is providing underpayment penalty relief for qualifying farmers and fishermen filing 2025 returns. This article explains who qualifies, how the relief works, and what to do if a penalty was already assessed.
IRS Provides More Overtime Deduction Guidance

IRS Provides More Overtime Deduction Guidance

The IRS has released additional guidance clarifying how the qualified overtime compensation deduction works. This post explains what counts as qualified overtime, how FLSA coverage affects eligibility, applicable deduction limits, and reporting requirements for employers and taxpayers for 2025 and 2026.