In the blogs: Heading into fall

Reducing K-1 penalties; another use for property taxes; 183 isn’t always added up the same; and other highlights from our favorite tax bloggers.

Numbers games

• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Fav headline of the week: “Who can make a billion-dollar mistake and not lose their jobs? Congressional tax writers.”
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): And another: “Court frowns on professional’s use of randomly generated Social Security numbers.”
• Tax Vox (https://www.taxpolicycenter.org/taxvox): Surging home values have amplified calls to cut or even abolish the property tax. Because property taxes rise with home values, homeowners may fear being squeezed by larger tax bills: The median bill rose about 30% between 2019 and 2024. Yet property taxes have not run amok. The real challenge is finding practical ways to protect residents without undermining the fiscal bedrock of local governments.

Still talkin’ about it

• Sikich (https://www.sikich.com/insights/): The IRS has released Rev. Proc. 2025-28, which provides guidance on elections for research expenditures under Sec. 70302 of the One Big Beautiful Bill Act. This procedure updates the process for changing accounting methods with the IRS and, importantly, addresses how taxpayers can retroactively apply the OBBBA’s Sec. 174A provisions for eligible small taxpayers.   
• Dean Dorton (https://deandorton.com/insights/): For businesses in research-intensive industries, one of the most favorable OBBBA changes is the partial restoration of immediate expensing for R&E costs. Since 2022, the Tax Cuts and Jobs Act required R&E expenses to be capitalized and amortized over five to 15 years. The OBBBA restores the ability to immediately deduct domestic R&E expenditures for tax years beginning after Dec. 31, 2025.
• Berkowitz Pollack Grant (https://www.bpbcpa.com/articles-press-releases/): What the OBBBA tries to do to tax exempts.
• Tax Foundation (https://taxfoundation.org/blog): The OBBBA provision limiting deduction of gambling losses might cause individuals to owe taxes on imaginary income, incentivizing gamblers succeeding on thin margins to exit the U.S. or try their luck in illicit markets. 
• Taxable Talk (http://www.taxabletalk.com/): You and your clients may have seen a list of occupations that are eligible for the OBBBA’s “No Tax on Tips” provision. Perhaps your client’s occupation is on that and they’re thinking, “Wonderful! My taxable income is going down!” Maybe that’ll be the case and maybe it won’t.

Heading into fall

Think first

• Mauled Again (https://mauledagain.blogspot.com/): “Can Tax Reductions Encourage People to Do What They Don’t Want to Do?” Well, let’s look at books and Denmark.
• CLA (https://www.claconnect.com/en/resources?pageNum=0): Why the UK should lower or abolish, not raise, its VAT registration threshold.
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): This blog will sunset on Sept. 30. All thanks and good wishes to the blogger from a grateful profession.
• Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): An indispensable guide for any client thinking about moving into e-commerce.
• TaxConnex (https://www.taxconnex.com/blog-): Not a few e-commerce clients now deal via the growing platform Shop. How does Shop’s app handle sales and is it a marketplace facilitator?
• Virginia – U.S. Tax Talk (https://us-tax.org/about-this-us-tax-blog/): The famous “183-day” is a benchmark tax test somewhat blindly relied upon by overseas-born residents who spend significant time in the U.S. But it has other equally important requirements that are always examined in time.
• Global Taxes (https://www.globaltaxes.com/blog.php): Before jumping on the bandwagon of leaving the country, expats should mull a lot of tax considerations.
•  EideBailly (https://www.eidebailly.com/taxblog): Corporate tax and finance practitioners often use the term “Permanent Establishment” and “Transfer Pricing” in the same breath. What’s the connection?
• Taxnotes (https://www.taxnotes.com/procedurally-taxing): In Moxon Corp. v. Commissioner,  the Tax Court held that the IRS’s failure to send a notice of deficiency to a partner’s last known address voided the notice, resulting in an abatement of the tax assessed based on the notice. Despite the failure to send the notice to the petitioner’s last known address, the failed notice did not affect the assessment for the related penalty. Now the taxpayer has a valid assessment of the penalty against it, even though it has no liability for the tax giving rise to the penalty.
• Withum (https://www.withum.com/resources/): Corporate taxpayers are encouraged to prepare for the Florida Strong Families Tax Credit Program, which opens for applications Jan. 2 each year. This program provides a dollar-for-dollar credit against select Florida taxes for contributions to approved charitable organizations.