Overwhelmed by the constant stream of regulatory updates that may affect your business? With everything always in flux, you’re under pressure to stay compliant. Access the latest key updates in one place, so you can navigate change effectively and keep up with regulations that impact your industry.
May 19, 2026If you deferred capital gains through a Qualified Opportunity Fund (QOF) under the original 2017 Opportunity Zone program, you must recognize and pay tax on those deferred gains by December 31, 2026, even if your investment has not produced cash returns.
Under current rules, the amount of gain recognized is the lesser of your original deferred gain or the investment’s fair market value (FMV) on the measurement date.* Accordingly, if your OZ investments have lost value or remain in development and haven’t fully realized their potential, a valuation of your QOF interests may help reduce your tax liability.
With the Opportunity Zones (OZ) program set to reset in 2027, now is the time to review your investments and understand how current values could affect what you owe.
Don’t wait until the last minute to figure out your QOF tax liability. Getting a clear picture of your investment’s FMV now gives you time you need to prepare for the 2026 deadline. Reach out to our tax and valuation advisors to see what steps you need to take.
*For investments in QOF partnerships and S-corporations, the regulations modify this rule such that the gain recognized on December 31, 2026, is the lesser of the remaining deferred gain or the gain that would be recognized on a fully taxable disposition at FMV. Accordingly, prior distributions and income/loss allocations from the QOF may need to be taken into account.On April 23, 2026, the U.S. Department of the Treasury announced proposed plans to revise IRS Form 990. The changes are designed to bring more transparency to how tax-exempt organizations handle public funds. If your organization receives government money through grants or contracts or manages fiscal sponsorships, your reporting requirements may soon change.
Proposed changes include:
This announcement is just beginning of a proposed process. Any updates to Form 990 will be subject to a public comment process before any changes are finalized. Additionally, the Treasury said it will consider administrative feasibility, proportionality and reporting burden as it develops the changes.
As part of a federal initiative to modernize government payments, the IRS is transitioning away from paper checks for trusts and estates.
While mailing a check is no longer preferred, it is still acceptable for now. According to an IRS fact sheet on Executive Order 14247: Modernizing Payments to and From America’s Bank Account that was updated on January 27, 2026, trustees and third parties that transact with the IRS can still make check payments.
However, the IRS strongly encourages all trusts and estates to make estimated tax payments, income tax payments, penalties and any other payments electronically.
You can’t use Direct Pay to pay trust payments, but you have multiple electronic options, including the Electronic Federal Tax Payment System (EFTPS), an ACH debit when you file your taxes electronically, a wire transfer from your financial institution or a debit/credit card payment (fees may apply).
We recommend enrolling in EFTPS as soon as possible, as this process requires a mailed PIN and can take several weeks to complete. Reach out to our tax planning experts for assistance in making this transition.
Recent court rulings have created uncertainty around how limited partners’ income is taxed for self-employment purposes. The big question is whether partners have to prove “passive investor” status.
Some courts, including the U.S. Fifth Circuit Court of Appeals, have challenged the current IRS take on this issue, allowing LPs in Texas, Louisiana and Mississippi to claim exemptions based on state law classification.
Since the courts haven’t reached a consensus on how to treat this issue, it’s important to review your partnership agreements and structures, especially if you are both an investor and operator. Check with your tax advisor to assess potential risks and avoid penalties and interest.
The IRS has issued Revenue Procedure 2026-08, introducing modernized and clearer rules for organizations seeking or maintaining group exemption. These updates streamline oversight responsibilities, reduce outdated burdens and provide greater flexibility for diverse organizational structures.
Additionally, the group exemption program has officially reopened after a pause in accepting applications that began on June 17, 2020.
A transition period runs through January 22, 2027. After that date, even preexisting subordinate organizations must comply with the updated affiliation, supervision and control standards, though they are exempt from the new uniform purpose statement requirement.
While the changes are more about clarity than transformation, we’re here to make sure you’re ahead of the curve and confident in your compliance.
We’ve dissected the update and are pleased to share that most of our clients are already in a strong position to address the changes. Though most will not need to take immediate action, this is a great opportunity to revisit your current approach and ensure you’re aligned with best practices.
We’re here to navigate these changes and prepare for what’s next. Connect with our experts to get help
The Department of Defense (DoD) has finalized its Cybersecurity Compliance Maturity Model (CMMC) 2.0 and has begun implementing the framework for contractors and subcontractors listed in the Defense Industrial Base (DIB). This includes manufacturers and distributors who handle controlled unclassified information (CUI).
If you believe you may be impacted by this new requirement, reach out to the Armanino Cybersecurity & Data Privacy team to understand how the CMMC assessments and audits apply to your organization.
The IRS recently announced a major change that will affect all U.S. taxpayers.
In response to Executive Order 14247: Modernizing Payments to and From America’s Bank Account, the IRS is moving to electronic payments and refunds for most taxpayers.
Starting soon, individuals, businesses, estates, trusts and expats will need to make tax payments and receive refunds electronically. While the paper payment and refund phase-out was to start on September 30, 2025, the IRS has delayed this change until further notice. They will provide updated guidance in time for the 2026 tax season.
If you currently receive refunds or make payments via paper check, you will need to transition to one of the new approved electronic methods (deadline to be determined). Reach out to your Armanino tax advisors to guide you.
After months of debate and revisions, the One Big Beautiful Bill (OBBB), H.R.1 — a sweeping tax package originally introduced to extend provisions of the Tax Cuts and Jobs Act (TCJA) — has been signed into law. While many of the early proposals raised concern within the nonprofit community, several of the most contentious provisions were ultimately removed or softened in the final version passed by the Senate (51-50 vote) and signed by President Trump on July 3, 2025.
Below is a summary of the key provisions that will directly impact nonprofit organizations, as well as those that were excluded from the final legislation.
OBBB includes both incentives and limitations for charitable giving:
Section 162(m)(7) of the Internal Revenue Code has been updated to expand the definition of “covered employee” for purposes of the 21% excise tax on executive compensation at tax-exempt organizations:
Many of the green energy tax credits introduced under the Inflation Reduction Act will be phased out. While the final bill includes a more gradual timeline than proposed by the Senate Finance Committee, these incentives will sunset earlier than environmental groups had hoped.
Several controversial proposals that raised red flags across the nonprofit sector were excluded from the final version of the OBBB:
These removals represent a significant win for the nonprofit sector, especially for organizations concerned about administrative burden and mission disruption.
The final passage of the One Big Beautiful Bill brings important changes to tax planning, fundraising strategy, and compliance for tax-exempt organizations. While the final version is less punitive than the original House proposal, it still introduces higher taxes for large educational endowments, limits on corporate giving, and broader compensation reporting requirements. There may also be impact felt from other aspects of the OBBB such as cuts to Medicaid that are expected to stress State budgets in ways that could result in cuts such as other areas to fill in the gaps. Nonprofit organizations that receive state and local funding various nonprofit organizations may end up seeing the impact of the broader cuts.
Nonprofit leaders and finance teams should:
Stay up-to-date—explore our Nonprofit Resource Center now for the latest news and tools.
The House passed the “One Big Beautiful Bill” and has sent the legislation to the president’s desk, consistent with his July 4 deadline. This legislation delivers on many of the promises President Trump made on the campaign trail, such as treatment of overtime pay, tip income and the creation of “Trump accounts.”
Here’s a breakdown of new or changed provisions, with more detailed analysis to follow.
The law reshapes several incentives introduced under the Inflation Reduction Act (IRA):
Our tax experts are ready to help you prepare for these changes. We can help you:
The House Ways and Means Committee released new tax legislation this week that could significantly impact pass-through entities, particularly in the professional services sector. If enacted, this proposal could keep partnerships and S corporations from deducting state and local taxes (SALT) at the entity level, including those historically allowed, such as franchise taxes and UBIT.
What Could ChangeThis change could significantly increase the tax burden on professional services firm owners and diminish the advantages of pass-through structures. If enacted, it would undo a key workaround many states and businesses have relied upon since the Tax Cuts and Jobs Act (TCJA).
What’s NextWhile not yet law, it’s important to understand how this change might reshape entity-level tax planning and impact your after-tax income. For a deeper dive, watch our webinar recap on The Big, Beautiful Bill & the Future of Professional Services.
Reach out to your Armanino tax advisor with questions or to discuss proactive strategies.
The House Ways and Means Committee released a draft of The One, Big, Beautiful Bill (OBBB) as part of the extension of the Tax Cuts and Jobs Act (TCJA), which has many provisions set to expire. This bill, drafted as part of the tax reconciliation package, includes several provisions that could have a major impact on the nonprofit sector.
Below is an updated summary of these key provisions and their potential effects on nonprofit organizations. Please note that provisions related to royalty income and tax-exempt status of terrorist-supporting organizations were removed from the final bill that advanced to the House floor for a vote.
Once the House Ways and Means committee approves provisions within the bill, it is expected to move to the House floor for a vote, potentially as soon as the week of May 19, 2025.
Nonprofits will then face new tax liabilities and compliance requirements, so it is crucial to review these updates and assess their potential impact on your operations and financial planning.
Our nonprofit experts are here to support you through these transitions and provide any additional information or assistance you may need.
On January 27, 2025, the U.S. Office of Management and Budget (OMB) issued a memorandum (OMB M-25-13) proposing a temporary pause on federal grants, loans and other financial assistance programs tied to foreign aid, DEI initiatives, undocumented immigrants, abortion and Green New Deal environmental programs.
How Nonprofits Can Prepare for a Federal Funding Freeze
While the funding freeze is currently on hold until February 3, uncertainty lingers. Here are three things you can do right now to prepare:
Don’t Walk This Path Alone
The federal funding review isn’t over, and its implications may grow. Now’s the time to act. Reach out to our nonprofit advisors who can help you prepare for potential funding delays, cuts or shifts. Stay informed with regulatory updates that may affect your mission.
The IRS and the California Franchise Tax Board (FTB) are extending 2024 tax filing and payment deadlines until October 15, 2025, and offering disaster loss relief options for Los Angeles fire and windstorm victims.
Note: You must have owned the property as of January 1 of the calendar year following the disaster, and estimated damages must be at least $10,000. You may also qualify for property tax relief for the upcoming fiscal tax year.
January 6, 2025
The Department of Health and Human Services (HHS) has proposed significant changes to HIPAA regulations for the first time in over a decade, aiming to enhance cybersecurity protocols for electronic health data. The proposed updates would eliminate the distinction between “required” and “addressable” specifications, making all cybersecurity measures mandatory. Key requirements include multi-factor authentication, data encryption and detailed documentation of data management practices.
While many healthcare cybersecurity leaders support these changes as a step toward stronger industry-wide data protection, concerns persist about the financial and operational impact on smaller providers. With the comment period open until March 7, 2025, healthcare organizations are encouraged to assess their current security measures and prepare for potential adjustments to meet these new standards.
The US Court of Appeals for the 5th Circuit issued a stay on the temporary injunction of the Beneficial Ownership Information filing requirements under the Corporate Transparency Act. This means that the CTA and its BOI registration obligations with FinCEN are now reinstated while the Departments of Treasury and Justice continue to argue for the constitutionality of the statute.
The registration deadline for entities that existed on January 1, 2024, as well as newly formed entities with registration deadlines through December 23, 2024, has been postponed to January 13, 2025.
The beneficial ownership registration requirements for entities and small businesses under the federal Corporate Transparency Act (CTA) became effective on January 1, 2024.
This week, a federal district court issued a temporary order prohibiting the enforcement of the CTA’s beneficial ownership information (BOI) reporting rule, citing it as unconstitutional.
This nationwide temporary injunction means that reporting companies are not required to comply with the CTA’s January 1, 2025, BOI reporting deadline for entities that existed on January 1, 2024, at this time. Additionally, newly formed entities, which were subject to a 90-day filing deadline under CTA, are also not required to comply at this time.
The widespread impact of Hurricane Milton in Florida has triggered IRS disaster relief efforts, meaning you will have more time to file your returns and pay taxes if you are in an affected area.
For individual and business taxpayers in one of the 51 affected counties in Florida, you now have until May 1, 2025, to file your federal individual and business tax returns and make tax payments.
The IRS is also providing penalty relief for businesses that make payroll and excise tax deposits. Each state has specific relief periods; visit the IRS’ Around the Nation page for detailed information.
The widespread impact of Hurricane Helene in the Southeast and August storms in Connecticut and New York have triggered IRS disaster relief efforts, meaning you will have more time to file your returns and pay taxes if you are located in an affected area.
For individual and business taxpayers in Alabama, Georgia, North Carolina, South Carolina, and some parts of Tennessee, Virginia and Florida, you now have until May 1, 2025, to file your federal individual tax and business tax returns and make tax payments.
For individual and business taxpayers in Suffolk County (New York) and Fairfield, Litchfield and New Haven counties (Connecticut) affected by the August 18 storms, mudslides and flooding, you now have until February 3, 2025, to file your federal individual and business tax returns and make tax payments.
The IRS is also providing penalty relief for businesses that make payroll and excise tax deposits. Each state has specific relief periods; visit the IRS’ Around the Nation page for detailed information.
The IRS has opened a second Employee Retention Credit (ERC) Voluntary Disclosure Program for a limited time and is allowing businesses that received ERC refunds for 2021 tax periods and are not currently under investigation to return a portion of the refunds and avoid penalties.
Due to the COVID-19 pandemic emergency, the Internal Revenue Service (IRS) postponed the three-year window for 2020 unfiled returns. The IRS recently announced there is an astounding $1 billion in unclaimed refunds still available for taxpayers who have not filed their 2020 tax returns. The deadline for filing 2020 returns is May 17, 2024.
The IRS’s ERC Voluntary Disclosure Program (VDP), which allowed employers who received invalid ERC claim refunds to repay a percentage of the Employer Retention Credit (ERC), ended on March 22. The IRS said it may reopen the VDP at a future date. However, the end of the program did not end IRS ERC claim reviews and audits.
If you are an employer who has not yet received your ERC refund and you determine that one or more of your quarters were invalid claims, you can still withdraw your refund claim without penalty.
Although the Securities and Exchange Commission (SEC) has been providing investors with financially material information about the environmental risks faced by public companies since the 1970s, a heightened awareness of accelerating climate risk in recent years has prompted the agency to provide its first official guidance on the topic in more than a decade. In March 2024 the agency adopted new rules for climate reporting.
The new rules require publicly traded companies to not only measure and report their annual greenhouse gas emissions but also to identify and describe their climate plans. The largest companies will likely have to begin reporting their climate risk data in 2025 and provide emissions data in the following year with the phase in of a “limited assurance audit” in 2029.
The Internal Revenue Service is rolling out a landmark non-filer initiative aimed at high-income taxpayers who haven’t filed their federal individual income tax returns since 2017. The IRS is mailing more than 125,000 CP-59 Notices (letters noting failure to file a tax return) to taxpayers with income of at least $400,000 in any year, starting with 2017. The mailings include more than 25,000 notices to taxpayers with more than $1 million in income and more than 100,000 notices to those with incomes of $400,000 to $1 million.
Taxpayers receiving notices should act swiftly to stop further accrued interest and penalties for non-filing. Penalties begin at 5% of the tax owed each month and can top out at 25% of the entire tax owed. Not responding will result in additional notices from the IRS and more severe enforcement procedures, including liens, audits and criminal prosecution.
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