United States: Tax

The IRS has finalized its list of occupations eligible for the income tax deduction on qualified tips under the "One Big Beautiful Bill Act," making only minor modifications from its preliminary guidance. Employers must now prepare to report employee occupation codes and cash tip amounts on 2026 Form W-2s, while navigating new rules that distinguish between qualifying and non-qualifying tips based on job duties and payment circumstances.

The Internal Revenue Service has introduced a streamlined process allowing taxpayers to extend the statutory two-year deadline for resolving disallowed Employee Retention Credit claims. This new option, utilizing Form 907, aims to prevent taxpayers from losing their right to administrative review or refund litigation as critical deadlines approach.

Understanding foreign tax credits is essential for taxpayers with international income. This analysis examines the qualification criteria for creditable foreign taxes, the basket system that limits cross-crediting across income categories, and the procedural requirements for claiming these credits on U.S. tax returns.