Well Seasoned: Q1 2026 SALT Insights
AI Summary: This collection of state and local tax insights highlights key Q1 2026 developments impacting businesses, including new USPS mailing rules, Michigan’s refundable R&D tax credit, increased enforcement of Montana LLC vehicle registrations, and state conformity challenges following federal tax changes. These updates emphasize the need for proactive planning, multistate awareness, and timely action to manage risk and maintain compliance.
Staying ahead of state and local tax developments requires more than monitoring headlines. It demands a clear understanding of how evolving rules impact compliance, risk, and planning opportunities. These insights highlight key considerations to help businesses navigate complexity, reduce exposure, and make more informed tax decisions.
When Federal Isn’t Final: Navigating State Tax Chaos After OBBB
State conformity to recent federal tax changes under the One Big Beautiful Bill (OBBB) varies widely, creating complexity and potential discrepancies in taxable income across jurisdictions. Businesses should closely monitor state-specific developments and model impacts to avoid underpayments and compliance challenges.
Dropped Off Doesn’t Mean Filed: How the New USPS Rule Could Affect Your Tax Deadlines
A recent USPS rule change is reshaping how “timely mailing” is defined, potentially invalidating long-relied-upon assumptions for tax filings and payments. Businesses should reassess mailing practices and filing timelines to reduce the risk of late penalties and ensure compliance.
Michigan Reintroduces a Refundable R&D Tax Credit: Key Deadlines
Michigan has reinstated a refundable R&D tax credit, creating new opportunities for businesses to recover costs associated with innovation. However, strict deadlines and evolving guidance make it essential for taxpayers to act quickly and evaluate eligibility.
The “Montana Loophole” Under Fire: What Vehicle Owners Need To Know
States are intensifying enforcement against Montana LLC vehicle registration structures, using data analytics and interagency coordination to identify noncompliance. Taxpayers may face significant exposure, including back taxes, penalties, and interest, and should consider proactive steps to mitigate risk.
KSM’s tax professionals follow tax legislation across the country. If you have questions about how these or other legislative actions might affect your business, please contact your KSM advisor or fill out the form below.
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