In the blogs: Harsh reminders

States’ adoption of OBBBA; replacing cigarette and property taxes; dirty water; and other highlights from our favorite tax bloggers.

The new abnormal

Armanino (https://www.armanino.com/articles/): Americans face an economic whirlwind in 2025. Here are some of the latest strategies to help them cope, starting with a breakdown of the OBBBA versus the Tax Cuts and Jobs Act.
Don’t Mess with Taxes (http://dontmesswithtaxes.typepad.com/): The IRS, as part of its phased implementation of the OBBBA provisions, won’t be making any immediate revisions to certain information returns or withholding tables in connection with tax changes for 2025. But those new laws include increases in the standard deduction amounts, exemptions for tipped and overtime income, and the senior bonus for filers 65 and older. (These will, coincidentally, mean higher refunds in a midterm year.)
Taxable Talk (http://www.taxabletalk.com/): Though certain tip and overtime income isn’t subject to tax under OBBBA, how can a tax pro know the total of tips and overtime? Or that the taxpayer worked in an industry where tipping is “normal?”
Wiss (https://wiss.com/insights/read/): Most state legislatures adjourned before OBBBA’s enactment, meaning that crucial decisions around state conformity and decoupling will be delayed until the 2026 sessions. Too bad for businesses trying to navigate new federal provisions while anticipating how their states will respond.
Dean Dorton (https://deandorton.com/insights/): How OBBBA impacts college endowment taxes.
The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/): Misleading aspects of OBBBA continue with overtime and the no-tax on Social Security.
Withum (https://www.withum.com/resources/): The IRS, as usual, hopes to avoid major disruptions for the coming season. To that end, employers and payroll administrators should begin tracking qualified tips and overtime pay immediately and expect upcoming guidance.
Institute on Taxation and Economic Policy (https://itep.org/category/blog/): How one state’s tax reforms advance racial and economic equity and another’s path to income tax elimination hinders them.
Taxpayer Advocate (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): The road ahead for pending tax administration legislation? Long.

Harsh reminders

Global Taxes (https://www.globaltaxes.com/blog.php): Expats — and not a few other Americans — have probably never been quite as keen on leaving the U.S. What about the taxes?
Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): As housing prices in most states hit record highs and property tax increases become a political hot (if not radioactive) potato, what tax becomes the primary option for addressing revenue shortfalls for cuts?
The Tax Times (https://www.thetaxtimes.com): When taxpayers fall behind on their federal taxes, they often hope for alternatives to harsh collection tactics. A recent Tax Court case involving an Iowa couple is a strong reminder: The IRS will expect real cooperation before granting relief.
The Sales Tax People (https://sales.tax/expert-articles/): Affiliate marketing is a way for clients to grow online sales, but clients working with bloggers, influencers or referral websites that promote products in exchange for a commission could unwittingly trigger affiliate nexus. What they should know.
Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): Recent affirmations in PICCIRC LLC and Pimlico LLC v. Commissioner provide critical insights into how courts scrutinize structured transactions and apply anti-abuse doctrines.
Tax Foundation (https://taxfoundation.org/blog): If cigarettes are addictive, so are cigarette taxes as a source of revenue to jurisdictions. Maintaining this revenue is a complex formula.
TaxConnex (https://www.taxconnex.com/blog-): Could your client’s business survive a sales tax audit?
AICPA & CIMA Insights (https://www.aicpa-cima.com/blog): Audits recently turned up fraud in the Virginia Department of Health and a water department in a town of 600 in Arkansas.