Tax Update for Clients on Minnesota 2025 Income and Business Tax ReturnsThe Minnesota Department of Revenue has released the final 2025 individual and business income tax forms, incorporating retroactive federal conformity provisions and Minnesota tax law changes enacted on May 27, 2026. As a result of these updates, certain taxpayers who have already filed their [...]

IRS Increases Standard Mileage Rates Effective July 1, 2026The IRS has announced an increase to the optional standard mileage rates for the second half of 2026 in response to rising fuel costs. Effective July 1, 2026, the standard mileage rate for business use of a vehicle increases to 76 cents per mile, while the rate [...]

IRS Introduces Automatic Penalty Relief Beginning in Summer 2026The IRS is replacing its long-standing First Time Abate (FTA) penalty relief program with a new Automatic Exemption from Penalty (AEP) beginning in Summer 2026. Under the new program, eligible taxpayers who have maintained a strong history of tax compliance will no longer need to request relief [...]

Trump Accounts Available Starting July 4th Effective July 4, 2026, families may begin opening Trump Accounts, a new type of child-focused, IRA-style savings account established under IRC Section 530A. These accounts are designed to encourage long-term savings by allowing investment earnings to grow on a tax-deferred basis during the child's early years. In general, a [...]

A Deep Dive into the Details and Benefits of Minnesota’s PFML ProgramAs we near the halfway point of 2026, let’s take a deep dive into one of Minnesota’s newest state programs, which is the Paid Family and Medical Leave (PFML) program that began in January 2026. For regular employers, the total premium rate is 0.88% [...]

Minnesota Issues Updated Guidance to One-Time Increase to 2025 Homestead Credit RefundsThe Minnesota Department of Revenue has issued updated guidance regarding a one-time increase of nearly 15% to the 2025 Homestead Credit Refund, following tax legislation signed into law by Governor Tim Walz in May. Homeowners who have already filed their 2025 refund claims do [...]

Minnesota Issues Preliminary Guidance on 2025 Homestead Credit Refund ChangesThe Minnesota Department of Revenue has announced preliminary guidance regarding recent legislative changes affecting the 2025 Homestead Credit Refund. A tax bill signed into law by Governor Tim Walz includes a one-time increase of nearly 15% to eligible Homestead Credit Refunds for 2025. The Department is [...]

Minnesota’s New Tax Bill and Extension of PTE Officially Signed into LawMinnesota Governor Tim Walz signed HF 2438, the state’s omnibus tax bill, into law on May 27, 2026. One of the key provisions for business owners is the inclusion of an extension of Minnesota’s pass-through entity (PTE) tax election, which had been the subject [...]

Minnesota Extends Pass-Through Entity Tax Through 2027: Key Developments from the 2026 Tax BillIn the final hours of Minnesota’s 2026 legislative session, lawmakers approved a comprehensive tax bill that includes several significant tax provisions affecting businesses and individual taxpayers throughout the state. The legislation passed with broad bipartisan support, clearing the House by a vote [...]

Minnesota Tax Court Recharacterizes Shareholder Advances as Taxable DistributionsIn a recent decision, the Minnesota Tax Court ruled that advances made by a closely held S corporation to one of its shareholder-owners constituted taxable shareholder distributions rather than bona fide loans.Although the court acknowledged several formal characteristics typically associated with debt—including the existence of promissory notes, [...]