Preparing for a New Reality

Federal tax law never changes quietly. Each new statute, sunset, or adjustment sends ripples through planning, compliance, technology, client expectations, and even the emotional landscape of tax practice. The theme of this issue—federal tax law update—reflects that reality. Our contributors tackle not only what Congress wrote, but what those words will mean for practitioners and taxpayers in the years ahead.

This year’s headline development, the One Big Beautiful Bill Act (OBBBA), shows how quickly “ordinary” tax concepts can shift. For example, as Kyle Harris, EA, explains, millions of taxpayers who never itemize will suddenly become eligible to deduct personal auto loan interest. At first glance, this seems straightforward. But as every enrolled agent (EA) knows, a new deduction brings new definitions, new exclusions, new phaseouts, and a new round of planning questions.

At the same time, Patrick Dimmitt, EA, walks us through the Internal Revenue Service’s (IRS) recent guidance on correcting wage disallowance errors for employee retention credit (ERC) claims. The ERC continues to generate downstream reporting issues even as the program winds down, a reminder that tax law rarely ends neatly when Congress says it does. James Peacock reinforces this point in his analysis of the §179D termination: the deduction may sunset in 2026, but the projects, certifications, and placed-in-service timelines will echo into the coming decades.

Of course, federal tax updates are not just about what expires. Sometimes they expand, and dramatically so. Thomas Gorczynski highlights significant new opportunities created by the OBBBA that open health savings account (HSA) eligibility to millions of additional taxpayers and broaden what qualifies as reimbursable medical care. These provisions will influence planning for years to come, particularly as health care costs continue to rise.

And not every update comes from the statute book. Some come from the realities of client behavior. Cari Barnes and her coauthors examine how tax practitioners perceived the Tax Cuts and Jobs Act through the lens of tax misperception theory. Their findings are striking: even technical experts were not immune to the same partisan framing and psychological shortcuts that affected taxpayers. As the next wave of reforms approaches, this research offers crucial insight into one of our profession’s most overlooked tasks: helping taxpayers understand not just what changed, but why it changed.

And while we are educating taxpayers, we must also educate ourselves about how we position our expertise. Harris Kamal, EA, challenges us to price like specialists, not commodities. Updated tax law brings new complexity, and with that complexity comes new opportunities to confidently communicate our value as federally licensed tax professionals.

Together, these articles reflect the core truth of tax practice: federal tax law is never static, and neither are the demands placed on the professionals who interpret it.

Looking ahead, our next issue will focus on corporate and international taxation, areas undergoing significant change and in urgent need of practitioner-driven analysis. If you have experience, insight, or a unique angle in these domains, we invite you to contribute. Strong articles begin with real-world questions, especially the ones your clients are asking right now.

The tax landscape is shifting quickly. Let’s help each other stay ahead of it.