Tax Update for Clients on Minnesota 2025 Income and Business Tax Returns
The 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 2025 Minnesota income tax returns may be required to file an amended return to ensure their Minnesota taxable income is calculated correctly.
Individual taxpayers who filed Schedule M1NC (Federal Adjustments) with their 2025 Form M1 should review their return and will need to file an amended return. Likewise, most businesses, estates, and trusts that filed a 2025 nonconformity schedule with their Minnesota income tax return should also amend their return. An exception applies if the only nonconformity adjustment reported was the exclusion of interest on loans secured by rural or agricultural real property (H.R. 1, Section 70435).
We encourage you to contact us if you have any questions. Otherwise, we will reach out to you if we believe that this change effects your return and amending is in your best interest to remain in compliance with the latest Minnesota tax law changes.
Federal Judge Blocks Minnesota’s Prediction Markets Ban
A federal judge has temporarily blocked enforcement of Minnesota’s new law that would have made the state the first in the nation to prohibit online prediction markets, including platforms such as Kalshi and Polymarket. The court issued a preliminary injunction after finding that federal law likely preempts the state’s ban, allowing these federally regulated platforms to continue operating in Minnesota while the legal challenge proceeds. The ruling centers on whether the event contracts offered by these platforms fall under the exclusive regulatory authority of the U.S. Commodity Futures Trading Commission (CFTC).
The decision is an important reminder that the regulatory framework surrounding prediction markets continues to evolve. While Minnesota maintains that these platforms constitute gambling subject to state regulation, the court concluded that many of the contracts offered may instead qualify as federally regulated financial derivatives. The litigation remains ongoing, and future court rulings could further define the respective roles of federal and state regulators. Businesses and individuals participating in prediction markets should continue monitoring developments, as the legal landscape may change as the case moves forward.
Tax Tip: Protect Your Identity with an IRS Identity Protection PIN (IP PIN)
The Internal Revenue Service (IRS) is encouraging taxpayers to obtain a free Identity Protection Personal Identification Number (IP PIN) to help safeguard against tax-related identity theft. An IP PIN is a unique six-digit number that serves as an additional layer of identity verification when filing a federal tax return, helping prevent criminals from filing fraudulent returns using your Social Security number or Individual Taxpayer Identification Number (ITIN). The IRS issues a new IP PIN each year, and taxpayers who choose to participate must include the current year’s PIN on all federal tax returns they file, including amended and prior-year returns.
The fastest way to request an IP PIN is through your online IRS Individual Account after completing the IRS identity verification process. Taxpayers who are unable to verify their identity online may qualify to apply using Form 15227 or complete the process in person at an IRS Taxpayer Assistance Center. The IRS also reminds taxpayers that it will never contact you by phone, email, text message, or social media to request your IP PIN. If you have questions about whether an IP PIN is right for you or need assistance with identity protection and tax filing, please contact us for questions.
Social Security Update: New Online Tools for Claims
The Social Security Administration (SSA) has introduced several enhancements to its my Social Security online portal, expanding self-service options for individuals with disability claims and appeals. Claimants can now securely complete and submit several important adjudication forms online, including those for reporting recent medical treatment, medication information, and work history. In addition, a new Claim Status Tracker provides real-time updates for disability claims pending at the Hearings and Appeals levels, giving users greater visibility into the progress of their cases.
The SSA has also enhanced the portal’s Message Center, allowing claimants to securely access proffer letters and numerous other hearing-related notices electronically for faster communication and easier case management. While these new digital tools are designed to improve efficiency and convenience, the SSA has confirmed that paper notices will continue to be mailed to claimants and their appointed representatives. Individuals with pending disability claims are encouraged to take advantage of these online features to stay informed throughout the appeals process.
IRS Update: Collection Financial Standards Revised for 2026
The Internal Revenue Service (IRS) has updated its 2026 Collection Financial Standards, which are used to evaluate a taxpayer’s ability to pay outstanding federal tax liabilities through installment agreements, offers in compromise, and other collection alternatives. Effective for financial analyses conducted on or after June 29, 2026, the IRS has adopted the Personal Consumption Expenditures (PCE) index as the basis for calculating these standards, replacing the Consumer Price Index (CPI). The IRS believes the PCE index provides a more accurate reflection of consumer spending patterns and will be used to adjust allowable living expense amounts going forward.
The Collection Financial Standards continue to include both national and local expense categories. National standards cover items such as food, clothing, and out-of-pocket health care expenses, which generally do not require taxpayers to document their actual costs. Local standards apply to housing, utilities, and transportation expenses and are generally limited to the lesser of the taxpayer’s actual expenses or the IRS’s published standard for their geographic area. Taxpayers with outstanding IRS balances should be aware that these updated standards may affect payment negotiations and eligibility for certain collection alternatives. If you have questions about resolving an IRS tax debt, our office is available to help evaluate your options.
Grant Thornton Announces Acquisition of CBIZ
The accounting profession continues to experience significant consolidation as firms expand their service offerings and geographic reach. Grant Thornton Advisors recently announced an agreement to acquire CBIZ in a $5 billion cash transaction, creating the fifth-largest provider of professional, tax, and advisory services in the United States. The combined organization is expected to generate nearly $7.5 billion in annual revenue and operate in more than 20 countries and territories, further strengthening its ability to serve clients ranging from middle-market businesses to global organizations.
This transaction reflects a broader trend within the accounting industry, with firms pursuing strategic mergers and acquisitions to enhance technology, broaden expertise, and meet the evolving needs of clients. Similar combinations in recent years, including Baker Tilly and Moss Adams, as well as CBIZ’s acquisition of Marcum, demonstrate the continued momentum toward consolidation. While these industry developments do not directly affect tax compliance or filing requirements, they underscore the changing landscape of professional services and the increasing emphasis on delivering comprehensive advisory solutions to businesses of all sizes.
