OneSource Accounting & Tax

10/15/2026

Premium Tax Credit Repayment Cap Eliminated

Clients who underestimated their 2026 income could face a larger tax bill than expected. The IRS and Treasury Department have released proposed regulations that update the premium tax credit (PTC) rules under §36B to reflect changes made by the One Big Beautiful Bill Act (OBBBA). The biggest change: starting with 2026 returns, the repayment caps in former §36B(f)(2)(B) no longer apply, so taxpayers must pay back every dollar of excess advance PTC (APTC).

10/15/2026

Social Security Benefits Rise 3.6% for 2027

The Social Security Administration (SSA) announced a 3.6% cost of living adjustment (COLA) for 2027. Nearly 72 million Social Security beneficiaries, including those receiving retirement, survivors and disability, will see the increase starting in January. The average retirement benefits will increase by $75 per month. Those who sign up for paperless notices by Nov. 18 can view their COLA notice in their my Social Security account in late November.

10/13/2026

Oct. 15 Deadline for Extended Returns and FBARs

Thursday, Oct. 15, is the last day to file extended 2025 individual returns under §6081. The extensions don’t apply to payments, so applicable failure-to-pay penalties under §6651 and interest under §6601 continue to accrue on unpaid balances.

Oct. 15 is also the automatic extended due date for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), required under 31 U.S.C. §5314. Clients whose foreign accounts topped $10,000 in aggregate at any point in 2025 must file electronically with FinCEN, separate from their income tax return.

10/13/2026

Health Insurance Rebate Checks Raise Questions
about two new payments

$ 500 rebate check for eligible HealthCare.gov enrollees who paid full price for 2026 coverage
$ 90 rebate for certain Medicare Part B enrollees. The precise federal tax treatment of these rebates remains uncertain until the IRS provides guidance.

Two code sections are relevant to the deduction treatment; §213 governs itemized deductions for unreimbursed medical expenses, while §162(l) governs the separate self-employed health insurance deduction.

Because either payment could affect the 2026 health insurance premium deduction, you should preserve all related documentation and avoid taking a definitive reporting position until the payment terms and IRS guidance are clear.

Welcome to the Health Insurance Marketplace®. Official government website.

10/02/2026

Treasury to Automatically Open Trump Accounts

Treasury’s temporary regulations provide for automatic creation of Trump Accounts for eligible children under age 18 with valid Social Security numbers if an initial Trump Account has not otherwise been established, as provided in §530A. Treasury cannot elect the related one-time $1,000 pilot program contribution under §6434, so parents or other authorized individuals of eligible U.S. citizen children born in 2025 through 2028 must separately elect it on Form 4547, Trump Account Election(s). The pilot contribution can be deposited into the auto account even if no one has claimed it yet. Families should still claim the auto account to confirm their authority, access account information and roll the balance into a claimed initial Trump Account.

The Treasury and the IRS are accepting comments on the proposed regulations, including whether beneficiaries should be permitted to disclaim automatically created accounts.

09/30/2026

Senate Passes Taxpayer Assistance and Service Act

The U.S. Senate today passed the bipartisan Taxpayer Assistance and Service (TAS) Act by unanimous consent, marking an important step toward significant reforms affecting taxpayers, tax professionals and IRS operations.

The legislation includes more than 60 provisions designed to strengthen taxpayer rights, improve IRS service and modernize tax administration. The Senate Finance Committee previously advanced the legislation with strong bipartisan support in a 26-1 vote.

The bill now moves to the U.S. House of Representatives for consideration

09/24/2026

New Per Diem Rates Take Effect Oct. 1

Businesses that reimburse employees’ travel have new numbers to work with starting next week. In Notice 2026-60, the IRS released the special per diem rates for travel from Oct. 1, 2026, through Sept. 30, 2027.

Under the high-low substantiation method, the daily rate climbs to $329 for high-cost localities and $230 for everywhere else in the continental United States, up from $319 and $225, respectively. The meals portion remains at $86 and $74, and transportation industry workers keep their $80 domestic and $86 overseas meal and incidental expense (M&IE) rates. Tucson, Arizona; San Mateo, California; Albuquerque, New Mexico; and Cody, Wyoming join the high-cost list, while Panama City, Florida, drops off.

09/24/2026

Key Changes to Draft 2026 Forms 1040 and 1040-X

The IRS has released 2026 draft versions of Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, Form 1040-NR and Form 1040-SS, along with Form 1040-X, Amended U.S. Individual Income Tax Return. For the first time, the Form 1040 series asks whether each filer is a U.S. citizen, U.S. national or an alien lawfully authorized to work in the U.S. at the time of filing.

The Form 1040 draft also adds Line 12f for the nonitemizer charitable deduction under §170(p), letting standard deduction filers deduct up to $1,000 ($2,000 for joint filers) in cash gifts to qualifying charities, excluding donor-advised funds (DAFs). Form 1040-X includes a matching Line 2b. Draft forms cannot be filed and may change before the IRS issues the final versions.

03/03/2026

Employee tips for 2025

Because Forms W-2 issued for 2025 will not separately list cash tips, the IRS will allow taxpayers to meet the reporting requirement if the tips are properly reflected in Box 7 on the W-2 or reported through the employee’s Form 4137. The notice outlines three acceptable methods for calculating total qualified tips:

Use the amount in Box 7 representing Social Security tips
Use all tip amounts reported on Forms 4070, Employee’s Report of Tips to Employer, or other employer- required monthly tip reports
Use amounts reported in Box 14 if provided by the employer
Use voluntary employer disclosures in Box 14 or a supplemental statement if provided
Note: Form 4070 is no longer downloadable from the IRS website. It had historically been included in Publication 1244, Employee’s Daily Record of Tips and Report to Employer, which has been made obsolete and is no longer available.

In addition, any amount the employee reports as unreported tips on Form 4137 may be included in the total.

Taxpayer’s responsibility

A key responsibility remains with the taxpayer. Employees must still determine whether their occupation was one that customarily and regularly received tips before 2025. They can use the list which was included in the September 2025 regulations for reference. Taxpayers may rely on this list until final regulations are issued.

Employers may voluntarily supply occupation information in Box 14, but they are not required to do so for 2025.

The statute normally prohibits the deduction if the tips are tied to an SSTB. The Treasury Department acknowledges that most employers have never evaluated whether their business is a specified service activity for this purpose. Accordingly, until final regulations are issued and effective, the IRS will treat an occupation that appears on the proposed list as eligible, without requiring the employer to determine its specified service status. This enforcement relief applies to both employees and non-employees.