This week, we highlight Representative Jeff Van Drew’s suggestion that House Republicans may approve a significant increase to the SALT deduction cap from $10,000 to $30,000, AICPA’s support for a Senate bill establishing uniform 30-day nonresident state income tax rules (excluding professional athletes and entertainers), and AICPA recommendations to make IRS regulations on generation-skipping transfer exemptions more accessible and less costly. We also cover concerning data showing financial illiteracy cost Americans over $243 billion in 2024, and news that President Trump has signed legislation blocking an IRS cryptocurrency reporting rule previously scheduled to take effect in 2026.
As the post-deadline calm settles in, we hope you’re enjoying a well-deserved break before diving into extension season and tax planning!
Did you miss last week’s edition? You can find it here.
House Republican sees SALT limit rising to $30K
From Accounting Today
Representative Jeff Van Drew said he thinks House Republicans will end up approving a $30,000 cap on the state and local tax deduction, a significant boost to the valuable and politically important write-off. Van Drew’s suggestion touches on what will be one of the most politically sensitive discussions in Congress as Republicans negotiate President Donald Trump’s tax-cut agenda, which will almost certainly include an increase to the current $10,000 SALT cap.
Uniform nonresident state income tax, withholding rules get AICPA support
From the Journal of Accountancy
Whether you’re a digital nomad or someone who’s worked outside your home state for just one day, you might be aware that states can tax income that out-of-state workers earn within their borders. A Senate bill to limit the ability for states and localities to tax transient out-of-state employees, which the AICPA described as “critically important,” was filed Thursday by Senate Majority Leader John Thune, R-S.D., and Sen. Catherine Cortez Masto, D-Nev. Employees and employers now must deal with different state income tax payment, withholding, and reporting requirements in almost every state that vary based on length of stay, income earned, or both. The bill excludes professional athletes, professional entertainers, certain film workers, and certain public figures from the 30-day standard.
IRS can make it easier to leave assets to younger generations, AICPA says
From The Tax Adviser
The AICPA submitted a letter to the IRS in which it recommended two changes to final regulations regarding the generation-skipping transfer (GST) exemption and certain elections to make it easier and less expensive for taxpayers to leave assets to younger generations. Even though the regulations are meant as “a safety net for missed GST elections,” the IRS can still improve them because their “high cost and complexity make the private letter ruling approach impractical for many taxpayers,” Eileen Sherr, CPA, CGMA, director–Tax Policy & Advocacy for the AICPA, said in a news release.
Tax and Financial Illiteracy Are Costing Americans
From the Tax Foundation
Paperwork is hardly anyone’s favorite activity, and it’s common for people to feel uncomfortable with math. Every year, though, millions of Americans face a task that requires both: filing taxes. But insufficient tax and financial knowledge can lead to serious consequences for taxpayers. Most often this means failing to claim benefits that could reduce their tax liability or claiming benefits they aren’t eligible for, which could lead to an unexpected audit. According to the National Financial Educators Council, financial illiteracy cost Americans more than $243 billion in 2024 alone—roughly $1,015 per person. Taxes play a key, yet often overlooked, role in financial literacy. In fact, the IRS Taxpayer Advocate declared tax literacy to be its top issue of the year in a 2024 report to Congress.
Trump Signs Bill Blocking IRS Crypto Tax Reporting Rule Biden Supported
From CPA Practice Advisor
President Donald Trump signed legislation to block an IRS rule that would have forced some cryptocurrency brokers to provide tax information on transactions conducted on their platforms. The IRS reporting rule—not yet in force—was due to take effect in 2026, but it had already sparked furious opposition from the crypto industry. The regulation required certain decentralized exchanges to report their customers’ gross sales of digital assets to the IRS.
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