The recent Tax Court decision in Mirch v. Commissioner, T.C. Memo. 2025-128, offers a stark reminder to tax professionals regarding the rigorous substantiation standards required for Real Estate Professional Status (REPS) and material participation, as well as the nuances of collection due process (CDP) procedural defenses. The case involves petitioners who were both attorneys, one of whom possessed an LL.M. in taxation and was a Certified Public Accountant. Despite this professional background, the Court upheld the sustaining of a Notice of Federal Tax Lien (NFTL) and rejected the petitioners’ underlying tax positions due to insufficient evidence and aggressive interpretations of passive activity loss rules.

The California Office of Tax Appeals (OTA) recently issued an opinion in In the Matter of the Appeal of Diet Standards LLC (OTA Case No. 230613542), decided on October 7, 2025. This case serves as a critical reminder to tax practitioners regarding the scope of "doing business" in California, particularly concerning out-of-state entities utilizing the Fulfillment by Amazon (FBA) program. The OTA affirmed the Franchise Tax Board’s (FTB) position that physical presence via inventory, regardless of value, satisfies the statutory definition of doing business under Revenue and Taxation Code (R&TC) section 23101(a), independent of the bright-line economic nexus thresholds found in section 23101(b).

The enactment of the One, Big, Beautiful Bill Act (OBBBA), Pub. L. 119-21, on July 4, 2025, introduced significant amendments to Section 223 of the Internal Revenue Code intended to expand the availability of Health Savings Accounts (HSAs). Prior to this legislation, strict definitions regarding High Deductible Health Plans (HDHPs) and disqualifying coverage often prevented taxpayers from utilizing HSAs despite having high out-of-pocket medical costs. The IRS has issued Notice 2026-5 to provide technical guidance on these statutory changes, specifically addressing the permanent expansion of telehealth safe harbors, the inclusion of certain Bronze and Catastrophic plans as HDHPs, and the treatment of Direct Primary Care Service Arrangements (DPCSAs).

Summary of the Final Rule The United States Postal Service (USPS) has adopted a final rule (FR Doc. 2025-20740) adding Section 608.11, "Postmarks and Postal Possession," to the Domestic Mail Manual (DMM). The rule formally defines postmarks and identifies the types of markings that qualify as such. Its primary purpose is to improve public understanding that while a postmark confirms the USPS possessed a mailpiece on the date inscribed, that date does not necessarily align with the date the USPS first accepted possession of the item. The rule clarifies that the USPS does not postmark all mail in the ordinary course of operations and that the absence of a postmark does not imply the USPS did not accept custody.

In the recent decision of Temnorod v. Commissioner, T.C. Memo. 2025-127, the United States Tax Court addressed the tax treatment of payments made by an acquiring entity to settle the liabilities of a related party in bankruptcy. The case serves as a critical reminder to tax professionals regarding the hierarchy of the Internal Revenue Code (the Code)—specifically, that capitalization requirements under section 263 generally supersede deduction provisions under section 162.

In the recent decision of Alioto v. Commissioner, T.C. Memo. 2025-125, the United States Tax Court addressed the consequences of a taxpayer failing to respect the separate existence of his closely held corporation. The Court ruled in favor of the Commissioner regarding deficiencies stemming from unreported wage income, constructive dividends, and capital gains, while simultaneously disallowing personal deductions for corporate business expenses. For tax professionals, this case serves as a stark reminder of the rigorous substantiation requirements for accountable plans and the application of the "duty of consistency" in preventing taxpayers from taking contrary positions to those of their controlled entities.

The Internal Revenue Service has released a draft version of Form 4547, Trump Account Election(s), scheduled for release in December 2025. This form facilitates the election to establish a "Trump Account"—statutorily defined as a type of traditional individual retirement account (IRA) subject to distinct regulatory modifications during a designated "growth period". For tax professionals preparing for the 2025 tax season and beyond, understanding the specific elections, contribution limits, and filing procedures associated with this new instrument is essential.

The Department of the Treasury and the Internal Revenue Service (IRS) have issued Notice 2025-68 to provide preliminary guidance on Section 70204 of the "One, Big, Beautiful Bill Act" (OBBBA), Public Law 119-21. This legislation introduces Section 530A, establishing "Trump accounts," and Section 6434, creating a pilot program for government contributions. The provisions generally apply to taxable years beginning after December 31, 2025.

For tax professionals, this Notice outlines a bifurcated retirement vehicle that operates under unique strictures during a beneficiary’s minority (the "growth period") before converting to standard Traditional IRA rules upon the beneficiary attaining age 18.

The U.S. Tax Court, in Lake Jordan Holdings, LLC v. Commissioner, T.C. Memo. 2025-123, delivered a thorough rejection of an egregious valuation claimed for a syndicated conservation easement, underscoring the necessity of grounding valuations in objective market realities rather than speculative assumptions. This memorandum opinion details the continuation of the "depressingly long line" of cash grabs disguised as charitable contributions. Although the Court ultimately found the basic requirements for claiming a charitable contribution deduction were met, the value claimed was deemed excessive, leading to the imposition of a 40% gross valuation misstatement penalty.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) announced their intent to issue forthcoming proposed regulations to implement the new individual tax credit provision codified as § 25F of the Internal Revenue Code (Code). This section was added by § 70411 of Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA).

Notice 2025-70 requests comments regarding issues arising under § 25F, emphasizing those issues related to the annual certification by a State and Scholarship Granting Organization (SGO) requirements, where prompt guidance is needed. The Secretary is directed by § 25F(h) to issue regulations or other guidance deemed necessary to carry out the purposes of § 25F, including guidance for enforcement and recordkeeping/information reporting.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2025-72 to announce their intent to issue forthcoming proposed regulations addressing two key areas impacted by recent legislation. Specifically, the notice details plans for proposed regulations under Section 70352 of Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA), which repealed Section 898(c)(2) of the Internal Revenue Code (Code). The OBBBA directed the Treasury Department and the IRS to issue guidance on allocating foreign taxes for foreign corporations affected by this repeal (the forthcoming proposed Section 898 regulations). Additionally, the notice addresses forthcoming proposed regulations under Section 987 that will modify the election concerning the recognition of pretransition Section 987 gain or loss ratably over the transition period pursuant to §1.987-10(e)(5)(ii)(A).

This article examines the decision of the United States Court of Federal Claims in Quinones v. United States, No. 24-810 (Fed. Cl. Nov. 21, 2025), focusing on the government’s successful recovery of an erroneously issued tax refund based on fraudulent reporting practices. The memorandum order and opinion issued by Judge Tapp provides crucial clarity regarding the application of the erroneous refund recovery standard and the weight accorded to fraudulent taxpayer representations under the self-assessment system.

This supplemental memorandum opinion addresses a taxpayer’s motion for reconsideration regarding the application and validity of Treasury Regulations governing the deduction of losses from activities not engaged in for profit, specifically in the wake of the Supreme Court’s ruling in Loper Bright Enterprises v. Raimondo, 144 S. Ct. 2244 (2024). This analysis focuses on whether Tecomate Industries, LLC (TI), a partnership, engaged in its farming activity with the requisite profit motive under Internal Revenue Code (I.R.C.) § 183.

On November 21, 2025, the Department of the Treasury and the Internal Revenue Service (IRS) jointly issued Notice 2025-69, providing crucial guidance for individual taxpayers eligible to claim new federal income tax deductions for qualified tips and qualified overtime compensation for the 2025 tax year. These new provisions were introduced by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly referred to as the One, Big, Beautiful Bill Act (OBBBA).

The OBBBA added new Code Section 224, granting an income tax deduction for "qualified tips," and new Code Section 225, granting an income tax deduction for "qualified overtime compensation". Both deductions are available for tax years beginning after December 31, 2024, and ending before January 1, 2029. The IRS is currently updating income tax forms and instructions to facilitate the claiming of these deductions during the filing season.

The Treasury Department and the IRS have finalized regulations (TD 10037) providing definitive guidance on the application of the stock repurchase excise tax, enacted under section 10201 of the Inflation Reduction Act of 2022 (IRA). These final regulations, which amend 26 CFR parts 1 and 58, are effective on November 24, 2025. They affect domestic publicly traded corporations and their specified affiliates for repurchases made after December 31, 2022. This technical guidance is issued pursuant to the express delegations of authority found in sections 1275(d), 4501(f), and 7805(a) of the Code.

The enactment of section 139L of the Internal Revenue Code (Code) by Public Law 119-21, 139 Stat. 72 (July 4, 2025), known as the One, Big, Beautiful Bill Act (OBBBA), created a new partial exclusion from gross income for certain interest received by qualified lenders. Notice 2025-71 has been issued by the Treasury Department and the Internal Revenue Service (IRS) to provide crucial interim guidance on the application of this provision. This article outlines the statutory requirements, details the administrative positions provided in the Notice, and clarifies the reliance standards for tax professionals advising qualified lenders.

This article examines the decision in United States of America v. Tuncay Saydam, Case No. 22-cv-07371-DMR, issued by the United States District Court for the Northern District of California. The case centers on the application of the Excessive Fines Clause of the Eighth Amendment to willful civil penalties imposed for failure to file Reports of Foreign Bank and Financial Accounts (FBARs).

This article examines the decision in Tom Prescott v. Commissioner of Internal Revenue, T.C. Memo. 2025-121 (2025), focusing on the technical requirements for establishing a mandatory whistleblower award under Internal Revenue Code (I.R.C.) section 7623(b) and the corresponding Treasury Regulations. The case hinges on whether the information provided by the petitioner "substantially contributed" to the resulting administrative action and collection of proceeds, especially in the context of multiple independent whistleblower claims.

This article examines the recent Tax Court Memorandum decision in John DiTullio v. Commissioner of Internal Revenue, T.C. Memo. 2025-120, concerning the critical requirement under pre-Tax Cuts and Jobs Act (TCJA) law that alimony payments terminate upon the death of the payee spouse to qualify for a deduction under Section 215(a). This case highlights the necessity of explicit termination provisions, especially where state law regarding maintenance obligations is deemed ambiguous.

On November 14, 2025, the Centers for Medicare & Medicaid Services (CMS) released the finalized amounts for premiums, deductibles, and coinsurance under the Medicare Part A and Part B programs for the 2026 calendar year, concurrently announcing the Medicare Part D income-related monthly adjustment amounts (IRMAA). This technical brief reviews the statutory context and the specific figures relevant to client planning for 2026, focusing particularly on the impact of modified adjusted gross income (MAGI) thresholds on Part B and Part D premiums.