Key Takeaways
- HSA Guidance
- HSA Legislation
- ACA Subsidy Vote
- White House Review of Money-Laundering Rule
- Crypto Legislation
- IRS Job Cuts Impact on States
- Carbon Capture Credit Safe Harbor
- NIL Accounts
- Trump Accounts
- DOJ Tax Division
- In the Courts
- Lager Day
HSA Guidance
New Guidance Provided on Expanded HSA Eligibility – Trevor Sikes, Tax Notes ($):
Notice 2026-5, 2026-2 IRB 1, released December 9, provides clarity on the One Big Beautiful Bill Act’s (P.L. 119-21) expansion of eligibility for HSAs, including telehealth and remote care services, bronze and catastrophic plans treated as high-deductible health plans (HDHP), and direct primary care service arrangements.
IRS Provides Guidance on Health Savings Account Expansion – Asha Glover, Law 360 ($):
Notice 2026-05 provided questions and answers to guide taxpayers through this summer's budget reconciliation bill's HSA expansion. According to the guidance, bronze or catastrophic plans that do not satisfy the minimum annual deductible requirement or maximum out-of-pocket expense requirements for high-deductible health plans will still be treated as high-deductible plans beginning in 2026.
IRS Issues Notice on GOP Law’s Health Savings Account Expansion – Erin Slowey, Bloomberg ($):
Notice 2026-5 addresses changes to telehealth and remote care services, bronze and catastrophic plans under the Affordable Care Act treated as high-deductible health plans, and direct primary care service arrangements.
HSA Legislation
Senate to Vote on GOP HSA Bill as Healthcare Credit Alternative – Cady Stanton & Katie Lobosco, Tax Notes ($):
Senate Majority Leader John Thune, R-S.D., announced that the chamber will hold two healthcare votes on December 11. One will be on a Democrat-backed plan to extend the enhanced premium credit, and the other will be on legislation written by two top Republican taxwriters that would replace the credit with a federally funded HSA.
ACA Subsidy Vote
Senate GOP Sets Doomed Vote to Replace Health Subsidies – Caitlin Reilly & Erik Wasson, Bloomberg ($):
Neither the Republican legislation announced Tuesday nor Democrats’ proposed three-year extension are expected to get the 60 votes needed for Senate passage. For some Americans, health insurance premiums will double or triple in the new year as the Covid-era tax credits expire.
G.O.P. Will Counter Democrats’ Bid to Preserve Subsidies With Their Own Plan – Carl Hulse, New York Times:
Senator John Thune, the South Dakota Republican and majority leader, said on Tuesday that Republicans would offer the legislation, written by the Republican senators Bill Cassidy of Louisiana and Mike Crapo of Idaho, as their alternative to a Democratic proposal for a three-year extension of tax credits enacted during the pandemic.
GOP moves to let Obamacare subsidies expire as Trump promises ‘money to the people’ – Meredith Lee Hill & Benjamin Guggenheim, Politico:
In a Monday interview with POLITICO, Trump refused to endorse a continuation of the expiring subsidies, even as his administration faces mounting pressure to address rising costs for Americans. He instead laid out his own vision for health care: “I want to give the money to the people, not to the insurance companies.”
White House Review of Money-Laundering Rule
White House Reviews Delay in Money-Laundering Rule for Advisers – Michael Rapoport, Bloomberg ($):
Proposed rules to implement the delay from Treasury’s Financial Crimes Enforcement Network, or FinCEN, reached the White House Office of Information and Regulatory Review on Tuesday, according to OIRA’s website.
Under the proposal, the rules, which were finalized in 2024, would take effect Jan. 1, 2028, instead of the current effective date of Jan. 1, 2026. FinCEN had proposed the delay in September.
Crypto Legislation
House Tax Writer Seeks August Enactment of Crypto Bill – Zach C. Cohen, Bloomberg ($):
…
Legislation that could clarify how the tax code should treat the trade or creation of digital assets has been a key priority for the industry that’s simultaneously pushing for rules from friendly policymakers.
Senate Republicans Threaten to Go It Alone on Crypto Bill – Zach C. Cohen & Steven T. Dennis, Bloomberg ($):
Senate Banking Committee Chair Tim Scott (R-S.C.) should schedule a mark-up on legislation creating a new market structure for digital assets next week, even if Democrats don’t agree on the bill, said Sen. Cynthia Lummis (R-Wyo.), a key negotiator.
IRS Job Cuts Impact on States
IRS Enforcement, Audit Pullback Seen Hitting State Coffers – Daniel Moore, Bloomberg ($):
States lean on data-sharing with the federal agency as it processes tax returns and roots out fraud to help inform their own activities, four state tax officials said Tuesday at New York University’s Institute on State and Local Taxation. Now, faced with a dramatic shift in IRS priorities, states are watching the filing season and upcoming audit cycles for clues on where they may have to adjust their own, said the officials from New York, New Jersey, Connecticut, and Pennsylvania.
Carbon Capture Credit Safe Harbor
Safe Harbor for Carbon Capture Credit Coming Soon – Mary Katherine Browne, Tax Notes ($):
Guidance allowing taxpayers to have their sequestration volume data verified by an independent engineer or geologist to meet the section 45Q requirement for tax year 2025 will be released by year-end, according to Kevin Salinger, Treasury deputy assistant secretary for tax policy.
NIL Accounts
Sens. Propose NIL Accounts To Help Students Grow Earnings – Tom Lotshaw, Law 360 ($). “Two U.S. senators introduced legislation Monday to allow the growing number of college student-athletes inking name, image and likeness deals with companies to create tax-advantaged investment accounts to save some of their earnings.”
Trump Accounts
Trump’s $300,000 Kid Accounts Claim Assumes 13% Annual Returns – Francesca Maglione & Josyana Joshua, Bloomberg ($):
Under the president’s One Big Beautiful Bill Act, the government will automatically seed an account with $1,000 for each child born between 2025 and 2028, as a way to set kids up for future financial success. The program got a boost last week, when billionaires Michael and Susan Dell agreed to donate $6.25 billion to the initiative for children aged 10 and under.
DOJ Tax Division
Justice Department Takes Another Step to End Tax Division – Nathan J. Richman, Tax Notes ($):
The Tax Division’s last day was November 30, but that still left a few more steps in the Justice Department’s reorganization, including updates to internal regulations and changes to the Justice Department manual.
DOJ Updates Regulations After Tax Division Elimination – Erin Schilling, Bloomberg ($):
The rule released Tuesday updates the DOJ’s organizational structure and largely amends the civil and criminal division functions, removing references that tax cases should be handled by the tax division.
In the Courts
Dog Deduction Has Neither Bark nor Bite, Judge Finds – Trevor Sikes, Tax Notes ($). “A taxpayer’s attempt to reclassify her dog as a dependent for tax purposes lacks merit and is likely to fail, a federal magistrate judge ruled.”
7th Circ. Denies Tax Evader's New Trial Over Disciplined Atty – Kat Lucero, Law 360 ($). “A man convicted of tax fraud will not get a new trial based on his lawyer's removal from the Seventh Circuit Bar two months after his conviction in an unrelated case, the appellate court ruled Tuesday, saying the discipline must relate to his own defense.”
Illinois Man’s Tax Convictions Hold Despite Disciplined Counsel – Holly Barker, Bloomberg ($). “An Illinois man lost his bid to undo tax fraud convictions after a federal appeals court said he failed to show ineffective assistance of counsel.”
Tax Court’s Conservation Easement Ruling Scrutinized on Appeal – Tristan Navera, Bloomberg ($). “The donation of a 500-acre tract of Georgia land again came under scrutiny Tuesday before a panel of federal appeals court judges, who questioned a lower court’s ruling and whether its owners assigned the proper value when taking a corresponding $14.17 million tax deduction.”
What Day is it?
Get hoppy, its National Lager Day! For you teetotalers out there, try celebrating Dewey Decimal System Day instead! Cheers!
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