Monthly US Tax Bulletin - May 2026

Key highlights:

Federal taxes

• Selective Rulings Revived for Corporate Transactions: The IRS has reinstated limited “significant-issue” Private Letter Rulings, restoring targeted guidance for complex restructurings and enhancing certainty in high-value corporate transactions.
• OECD advances Global Minimum Tax implementation toolkit: The OECD’s new toolkit provides jurisdictions with a structured roadmap to implement Pillar Two rules, promoting consistency and reducing compliance complexity for multinational enterprises.
• Employee Retention Credit (ERC) disputes get procedural relief: The IRS introduces a deadline extension mechanism for ERC claim disputes, safeguarding taxpayer rights and easing administrative pressures during ongoing reviews.
• IRS expands digital access to more entities: The expansion of the Business Tax Account to partnerships, exempt organisations, and government bodies reflects the continued IRS focus on digital transformation and streamlined compliance.
• Form 1099 threshold revision signals reporting relief: Proposed regulations to increase the Form 1099 reporting threshold and align related provisions aim to reduce compliance burden while modernising outdated reporting requirements.

State taxes

• Ohio aligns with federal changes while retaining key adjustments: Ohio updates its IRC conformity date while continuing selective decoupling, balancing alignment with federal law and preservation of state-specific tax adjustments.
• Maryland reinforces depreciation decoupling framework: Maryland expands its departure from federal accelerated depreciation, standardising cost recovery rules, and deferring tax benefits to protect state revenues.
• Alabama clarifies local adoption of tax exemptions: Alabama formalises that state-level exemptions do not automatically flow to local jurisdictions, strengthening procedural clarity and local autonomy in sales tax administration.
• Oregon modernises corporate tax rules and extends PTE regime: Oregon refines its conformity with federal international tax concepts while extending its pass-through entity (PTE) tax election, ensuring continued SALT cap relief for PTEs.
• Indiana tightens Net Operating Loss (NOL) utilisation and maintains federal decoupling: Indiana advances a more restrictive, state-specific tax base by refining NOL rules, limiting federal conformity, and increasing adjustments for international and depreciation provisions.

Monthly US Tax Bulletin - May 2026

The May 2026 edition of the Grant Thornton Bharat Monthly US Tax Bulletin provides a concise summary of recent key developments in federal and state taxes in the US.

Download

Learn more about how our US Tax services can help you

Visit the page