Issue Number: 2026-02
Inside This Issue
Guidance available on additional first year depreciation deduction
The IRS issued guidance on first year depreciation deduction under the One, Big, Beautiful Bill. This deduction applies to taxpayers with eligible depreciable property acquired after January 19, 2025.
There’s also guidance on:
- Certain qualified sound recording productions property that may be eligible for deduction.
- Interim guidance for taxpayers who generally rely on existing first year depreciation deduction regulations.
- Rules on depreciable property that may be eligible for first-year depreciation deduction and the amount of allowable deduction.
For more about tax provisions under the OBBB, see One, Big, Beautiful Bill Provisions on IRS.gov.
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IRS Advisory Council issues annual public report
The IRS Advisory Council issued its annual report with recommendations to the IRS on a range of new and continuing issues in tax administration. It includes recommendations on 29 issues addressing topics related to IRS operations, taxpayer service, compliance and administrative issues.
For more information on key issues addressed in the report, check out the news release.
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Revisions to Qualified Opportunity Zones in rural areas enhance tax incentives
IRS guidance on Qualified Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill clarifies the definition of “rural area” and the application of the substantial improvement threshold for certain improvements to property located in a QOZ comprised entirely of a rural area.
- A rural area is any area other than a city or town with a population greater than 50,000, and any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000.
- The substantial improvement threshold for required additions to the basis for property in these QOZs was reduced from 100% to 50%.
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Online tools and resources available for 2026 tax filing season
The IRS reminds business and individual taxpayers of new tax law provisions of the One, Big, Beautiful Bill could impact federal taxes, credits and deductions. Taxpayers should take steps now to prepare for filing taxes:
Taxpayers who do not have a bank account are encouraged to open one so they can receive refunds by direct deposit.
More information on how to prepare can be found in IRS Tax Tip, Next steps to Get Ready for 2026 tax filing season.
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Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:
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