Minnesota Issues Chart Showing Impacts of OBBBA on Minnesota Income Taxes

The Minnesota Department of Revenue recently released a chart that provides important information for taxpayers navigating the discrepancies between Minnesota tax law and federal tax changes under the One Big Beautiful Bill Act (OBBBA). Since Minnesota hasn’t fully conformed to the changes made by Congress in OBBBA, taxpayers may need to adjust their state tax returns. The chart outlines the federal tax provisions impacted, including deductions, credits, charitable contributions, and business expensing, specifying which Minnesota tax forms (M1, M2, M3, M4, M8) are affected. The chart covers a range of tax years from 2022 to 2027.

Taxpayers will need to determine if the federal changes in OBBBA influence their taxable income and adjust accordingly on their Minnesota return. If a federal provision does affect their income, they should follow the guidelines in the chart to ensure they report the correct amount. The Department’s chart serves as a useful tool to help identify areas of nonconformity between federal and state tax rules, so taxpayers can make the necessary adjustments for tax accuracy.

For more information: https://bit.ly/3ZBi1sJ 

 

IRS Expands Simple Payment Plans to Include Business Taxpayers

The IRS has expanded its Simple Payment Plan program to include business taxpayers, offering a more streamlined way for businesses to set up long-term payment arrangements if they can’t pay their full tax liability at once. Effective December 3, 2025, this update eliminates the need for a collection information statement or lien determination, making it easier for businesses to qualify. For businesses with trust fund taxes, the maximum threshold for total assessed tax, penalties, and interest is $25,000. For businesses without trust fund taxes and out-of-business sole proprietorships, the threshold is $50,000.

This change consolidates previous installment agreement types into one program, simplifying the process. To apply for a Simple Payment Plan, businesses or their representatives can call the IRS at (800) 829-4933 or visit their local Taxpayer Assistance Center. This update is likely to benefit many businesses that were previously struggling to navigate the installment agreement process or faced barriers due to more stringent qualifications.

 

Department of Education Proposes New Student Loan Rules and Definitions

The Department of Education (DOE) has issued proposed rules to implement provisions from the One Big Beautiful Bill Act (OBBBA), which includes significant changes to federal student loan limits for graduate and professional students. Starting on July 1, 2026, new, lower loan limits will apply for graduate students, while a higher loan limit category will be introduced for “professional students.”

Under the new rules, “professional students”—those pursuing degrees required for licensure and practice in fields such as medicine, law, and other similar fields—will be able to borrow up to $50,000 annually, with a total aggregate borrowing limit of $200,000. In contrast, graduate students will be capped at $20,500 annually and $100,000 in total borrowing for their entire education.

A key aspect of this change is the DOE’s decision to exclude business degrees, such as a Master of Business Administration (MBA), from the professional student category. Since these degrees are not generally required for licensure or professional entry, MBA students (along with those pursuing other advanced business or accounting degrees) will be subject to the lower loan limits for graduate students. This change could have a significant financial impact on graduate students pursuing business-related degrees with limiting their borrowing capacity.

 

TIGTA Finds IRS Lags on Paperless Processing Goals

A recent report from the Treasury Inspector General for Tax Administration (TIGTA) highlights significant delays and challenges with the IRS’s efforts to meet paperless processing goals. Despite ambitious plans, the IRS has not met its initial target to fully digitize specific tax forms (Form 940, Form 941, and Form 1040) by the 2025 filing season. By May 2025, only 5% of the 9.8 million paper forms received had been scanned. Even after halting development of an in-house system, the IRS pivoted to a new initiative, the Zero Paper Initiative (ZPI), aimed at achieving this goal for the 2026 filing season. However, progress has continued to fall short, with only 7% of 5.7 million forms scanned by early August 2025.

TIGTA’s report also raises concerns about the IRS’s ability to meet a federal mandate requiring the digitization of all historical tax records by December 2030. To avoid missing the mandate, TIGTA recommends prioritizing the scanning of historical documents and addressing the ongoing delays. This situation underscores the difficulty federal agencies face in modernizing their infrastructure, particularly with large-scale document management and digitization, which are essential for improving efficiency and compliance with future regulatory requirements.