Plain-language notes on U.S. tax deadlines, IRS letters, cross-border reporting and running a small business, written by the CPAs who handle these questions every day.
Under IRS Notice 2026-40, gain deferred through a Qualified Opportunity Fund investment made on or before December 31, 2026 is included in income on December 31, 2026 and reported on 2026 returns with Form 8997, even if the investor has not sold. Starting January 1, 2027, OBBBA's permanent QOZ 2.0 rules bring a rolling 5-year deferral, a 10% basis increase (30% for rural funds) and newly designated zones, while proposed QOF reporting rules (REG-116506-25) face a November 5, 2026 hearing.
Treasury finished Trump Account auto-enrollment on October 1, 2026, so eligible children with an SSN now have an account that a parent must claim and activate in the official app before family or employer money can go in. U.S.-citizen children born 2025 through 2028 still need a separate Form 4547 election for the $1,000 seed, and T.D. 10056 (IRB 2026-44, October 26, 2026) sets the rules.
On October 16, 2026 (IR-2026-123), the IRS said it has begun automatic refunds to more than 50,000 adoptive families because, for tax year 2025 only, 2020–2024 adoption credit carryforwards can count toward the refundable credit of up to $5,000 per child. Most families need not amend, but should check the IRS notice, correct the 2026 carryforward and consider Form 843 for any estimated tax penalty.
On October 14, 2026, Treasury and the IRS proposed regulations (REG-101576-26) implementing OBBBA's premium tax credit changes: for tax years beginning after December 31, 2025, excess advance PTC must be repaid in full with no cap, and from 2027 family members who are lawfully present but not "eligible aliens" are excluded from the PTC computation. Update your Marketplace income estimate now, confirm each family member's status category before 2027 coverage, and note that comments are due November 30, 2026.
IRS Notice 2026-58, published in IRB 2026-42 on October 13, 2026, obsoletes 71 older rulings, procedures, notices and announcements—including the Form 1099-K transition notices made moot by OBBBA §70432 and capitalization rulings now covered by final regulations. It adds no new filing duty for most taxpayers, but templates, memos and checklists citing obsolete guidance should be updated.
The July 4, 2025 OBBBA changed or extended many federal tax rules instead of leaving the TCJA framework to expire as previously scheduled. Details require verification.
§70105 keeps §199A for 2026+, widens phase-in to $75k/$150k, and adds a conditional $400 minimum—thresholds per RP 2025-32. YCL compliance map (to be verified items flagged).
Tips/OT/car interest/senior deductions are after AGI federally; NCDOR Q14: they do not reduce NC taxable income. Standard deduction and SALT also diverge. Compliance planning.
RP 2024-40 listed TY 2025 $15,000 / $30,000; post-OBBB IR-2025-103 lists $15,750 / $31,500. NC standard deduction does not auto-follow. Compliance planning.
California generally does not conform to the 2025 OBBBA. Residents and businesses should track separate state adjustments for SALT, 529, QSBS, research costs, bonus depreciation, and K-1 items.
Draft IRC §899 (“revenge tax”) was removed from the final OBBBA and never enacted. Foreign investors are not hit by that proposal’s escalating rates or Super BEAT. Chinese shareholders with U.S. holdings should still plan under existing withholding, FIRPTA, and filing rules.
OBBBA §70104: CTC up to $2,200 per qualifying child (2025), with ACTC up to about $1,700 refundable. Child and at least one MFJ spouse need work-authorized SSNs. ITIN-only children may get $500 ODC instead. Federal credit ≠ automatic NC cut.
OBBBA §70120: federal SALT cap $40,000 for 2025 ($40,400 for 2026), with 30% MAGI phasedown to a $10,000 floor; reverts in 2030. Still requires itemizing. NC mortgage interest + real estate tax remain combined-capped at $20,000 (NCDOR Q16).
OBBBA §70203: for 2025–2028, deduct up to $10,000 of qualified passenger-vehicle loan interest on a new, U.S.–finally-assembled personal vehicle financed after 2024. MAGI phase-out applies. NCDOR: does not reduce NC taxable income.
OBBBA enhanced senior deduction: up to $6,000 per person age 65+ for 2025–2028 ($12,000 if both spouses qualify), on top of the traditional age extra SD. 6% MAGI phase-out; NCDOR: does not reduce NC taxable income.
OBBBA §225: for 2025–2028, deduct the FLSA overtime *premium* only—up to $12,500 ($25,000 MFJ), with MAGI phase-out. Not the full OT check. NCDOR: does not reduce NC taxable income.
OBBBA (P.L. 119-21) added §224: deduct up to $25,000 of qualified tips for 2025–2028, with MAGI phase-out. NCDOR states the deduction does not reduce NC taxable income. Cary/RTP tipped workers should plan records and Schedule 1-A carefully.
OBBBA (P.L. 119-21) permanently restores 100% bonus depreciation under §168(k) for qualified property acquired after January 19, 2025. Cary/RTP small businesses should confirm contract and placed-in-service dates before year-end CapEx—and note temporary §168(n) qualified production property.
