The tax and regulatory environment continues to evolve rapidly, with significant developments on both federal and state fronts. To keep you ahead of these developments, we present the August 2026 edition of the Grant Thornton Bharat's Monthly US Tax Bulletin.
This edition provides a concise summary of recent key developments in federal and state taxes.
Key highlights:
Federal taxes
- Treasury released proposed regulations outlining transition rules following the repeal of the IRC §898(c)(2) one-month deferral election and addressing foreign tax credit disallowances under IRC §960(d)(4).
- FinCEN finalised rules exempting US companies and US persons from Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act and requiring the deletion of previously-reported BOI relating to US persons.
- The IRS and Security Summit partners cautioned of growing phishing and cyber threats and emphasised enhanced security practices to protect taxpayer data.
- The Treasury Department and the IRS issued guidance on the enhanced paid family and medical leave tax credit, providing clarification on employer eligibility and credit computation requirements.
- The IRS granted Form 990 (Return of Organization Exempt From Income Tax) filing relief for certain foreign Fédération Internationale de Football Association (FIFA) member associations participating in the FIFA World Cup 2026.
- The IRS expanded the Business Tax Account platform by adding new digital services and making the platform available to more businesses and organisations.
- H.R. 9172 proposes extending wash sale and constructive sale restrictions to digital assets, including cryptocurrencies.
State taxes
- New Jersey proposed a temporary USD 1 million cap on the use of Net Operating Losses (NOLs) for Corporation Business Tax (CBT) purposes, preserving the future utilisation of disallowed NOLs through an extended carryforward period.
- Delaware enacted House Bill 400, increasing various corporate filing fees and annual entity taxes, including the annual tax for partnerships and LLCs.
- Alabama enacted SB 221 (Act 2026-587), excluding separately stated credit card processing fees from taxable sales and use tax calculations for electronic payments.
- Nevada has proposed amendments to its Voluntary Disclosure Program that would broaden eligibility, require taxpayer identification and formalise compliance timelines and procedures.
- New Hampshire enacted HB 155-FN, increasing Business Enterprise Tax (BET) filing thresholds and establishing a revenue-based framework for future reductions in the BET rate.
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