Tax pros, slow down before sharing this as a current tax law change.

The IRS issued proposed regulations under REG 119882 25. These rules are not final and should not be applied to returns today.

If finalized, taxpayers would need to be a U.S. citizen, U.S. national, or qualified alien under PRWORA to receive the refundable portion of these credits:

✅ Earned Income Tax Credit

✅ Child Tax Credit

✅ American Opportunity Tax Credit

✅ Adoption Tax Credit

The refundable portion means the credit amount that exceeds the taxpayer’s income tax liability and creates a refund.

A taxpayer who is not eligible for that refunded portion could still use the allowable nonrefundable portion to reduce their tax liability. Federal income tax withheld from wages is also separate from this restriction.

Other important details:

1. Qualified status would be determined on the date the taxpayer first files a return claiming the credit.

2. This could be an original, late, or amended return.

3. On a joint return, only one spouse would need to meet the citizenship, nationality, or qualified alien requirement.

4. Tax residency and immigration status are not the same test.

5. Taxpayers would self certify their qualifying status under penalty of perjury.

If finalized, the rules would apply to tax years ending on or after the date the final regulations are published.

For now, do not deny credits, change your intake process, or create your own immigration status test based on this proposal. Monitor the final regulations, updated tax forms, software changes, and IRS instructions.

Proposed does not mean effective.

Official guidance: IRS announcement and REG 119882 25 proposed regulations.

Tax pros, we need to ask more questions when influencers claim “marketing expenses.”

In Sami v. Commissioner, T.C. Memo. 2026-69, a taxpayer spent nearly $100,000 on celebrity meetings, award show tickets, sporting experiences, memorabilia, and other events. He took pictures and videos at the events and posted them on social media.

He argued that the attention increased his views, followers, and future earning potential.

The Tax Court still disallowed the expenses.

Why?

1. The experiences were primarily personal, even if the posts later benefited his platform.

2. He earned no social media income during the tax years involved.

3. Many expenses lacked receipts, descriptions, or proof connecting the purchase to specific business content.

4. He originally reported the expenses as charitable contributions, then later reclassified them as marketing.

5. Some expenses may have been startup costs instead of current business expenses.

The lesson is not that every influencer expense is nondeductible. The lesson is that posting a personal purchase online does not automatically turn it into a business expense.

Before claiming influencer expenses, verify:

✅ What was purchased?

✅ What was the primary business purpose?

✅ How did it connect to the income producing activity?

✅ Is there a receipt, contract, campaign plan, post, or analytics report?

✅ Was the business already operating, or was the taxpayer still building it?

Tax software will accept the number. Your job is to determine whether the deduction can actually be defended.

Case reference: Sami v. Commissioner, T.C. Memo. 2026-69

Effective August 14, 2026, FinCEN permanently removed the Beneficial Ownership Information reporting requirement for U.S. companies and U.S. persons.

Here is what changed:

✅ U.S. companies no longer need to submit BOI reports.

✅ U.S. companies do not need to update or correct previously submitted BOI reports.

✅ U.S. persons with FinCEN IDs are no longer required to update or correct their information.

✅ FinCEN announced that previously reported information belonging to U.S. persons will be deleted from its BOI database.

Certain foreign companies formed outside the United States and registered to conduct business here may still have reporting responsibilities.

Important reminder: This change only applies to BOI reporting with FinCEN. It does not eliminate state annual reports, business renewals, tax filings, licensing requirements, or information a financial institution may request.

Tax professionals, update your business formation checklists, client notices, service packages, and training materials. U.S. business owners should not be told they are still required to file a BOI report.

Official guidance: FinCEN announcement and Federal Register final rule.