At Around the Tax World, you can find out all about what’s going on in the wonderful, worldwide world of tax. Every month, we’ll feature a few mini-articles on what’s been going on in the world when it comes to tax, and fully available for viewing even if you don’t have a subscription.
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In The Headlines
President Trump projects an end to the war in Iran in April, causing stocks to rally. Recent remarks from the president suggested that U.S. strikes on Iran could end within the next two to three weeks. Trump also indicated that troops may pull back even if the Strait of Hormuz remains closed. About 20% of all oil and liquefied natural gas passes through the strait to reach the nations. Some continue to express concern about the long-term consequences in the region, but the stock market responded with a jolt of optimism. The S&P 500 rose by 0.6%, the Nasdaq Composite by 0.9%, and the Dow Jones Industrial Average by 0.4%. Brent crude—the benchmark for crude oil prices—also fell below $100 a barrel on the same day. These shifts came as AAA reported that gas had risen to an average of $4.06 per gallon in the U.S.—a 36% jump over the past month.
Rumors hint that SpaceX has quietly filed for an IPO, which could lead to the biggest listing in history. Sources have told the press that Elon Musk’s aerospace company confidentially submitted its registration for an initial public offering. If this is confirmed, the company would likely be listed in June, beating A.I. companies OpenAI and Anthropic PBC to the punch. Even more notably, the valuation has been estimated at over $1.75 trillion, partly due to its merger with Musk’s startup xAI. The company could raise more than $50 billion in the IPO. SpaceX is responsible for the highest number of rockets in space, generating about $8 billion in profits last year by supporting satellite communications. The company is now seeking permission to launch up to 1 million satellites to function as A.I. data centers. Musk has also hinted at plans to conduct a mission to the moon and to colonize Mars.
Drugmaker Eli Lilly gets FDA approval for a new weight loss pill and continues battling Trump’s pricing policy. Lilly’s daily pill Foundayo is the second oral GLP-1 to hit the market recently. Foundayo will be offered in six doses and is expected to cost $149 per month for the lowest dose. Private insurers have yet to confirm if they will cover the drug, but Medicare may begin covering it as early as this summer. A large-scale clinical trial found that the pill helped patients lose an average of 12.4% of their weight at its highest dose. Though injections of drugs like Wegovy or Zepbound generally result in more significant weight loss, many patients still prefer to take a pill, especially if they are prone to injection site reactions. Meanwhile, Lilly is also speaking out against the White House’s “most favored nation” drug pricing policy. Though about a dozen drugmakers signed an agreement to charge similar prices for prescription drugs in the U.S., the companies have opposed the Trump administration’s recent push for Congress to turn the pricing deal into law.
What's New In The Tax World?
Did you know tax assessments have an expiration date? Here’s what to know.
Each year, taxpayers and business owners aspire to keep their tax liability low and pay their tax bills on time. But what if that doesn’t happen? If you have unpaid taxes, you need to understand the parameters of the Collection Statute Expiration Date (CSED). This refers to the end of the time period when the IRS is legally able to collect taxes. The CSED is typically ten years from the date that the tax was assessed. That seems simple enough—unless you happen to take an action that delays your CSED. Common events that can change your CSED include:
- Requesting an installment agreement: While the request is pending, the tax collection timeline is essentially on pause. If your request is rejected or you default on an existing installment agreement, the CSED is pushed back by 30 days. If you appeal a rejection or termination, the timeline is also paused until an appeal decision is made.
- Filing for bankruptcy: While your bankruptcy is pending, the collection period is paused. The CSED is then extended for an extra six months after your bankruptcy case concludes.
- Submitting an Offer in Compromise agreement: While the submission is pending, the collection period is paused until the offer is either accepted, returned, withdrawn, or rejected. If your offer is rejected, the collection period is extended for 30 days—or longer if you file an appeal.
- Requesting a collection due process hearing: The collection period is on pause from the date the IRS receives your request to the date the determination is finalized. If the case is still open and you come within 90 days of the CSED, the collection period will be extended to 90 days from the date of the determination.
- Filing an innocent spouse claim: If you file the claim, the collection period is on pause from the date you filed until the earliest of these dates:
- The date a waiver is filed
- The date the 90-day period for petitioning tax court expires (if the tax court is petitioned, the collection period is also extended by 60 days)
- The date the tax court decision becomes final
Lastly, certain tax assessments come with their own CSED, which may be different from the standard ten years. This includes tax assessments from:
- Amended returns
- A Substitute for Return filed by the IRS
- Audits
- Certain penalties
To find your CSED, go through your IRS online account or complete Form 4506-T, Request for Transcript of Tax Return.
State-By-State Updates
Alaska struggles with lost revenue from properties erroneously claiming a tax exemption. Anchorage may be losing out on $10 million in annual revenue due to a lack of oversight for property tax exemptions. In Alaska’s biggest city, about $15 billion in property value is currently tax-exempt, or 25% of the total assessed property. Religious, nonprofit, education, health, and economic development organizations can all qualify for a tax exemption depending on how they use the property in question. The problem is that once a property is approved for an exemption, they do not have to undergo an annual recertification. As a result, officials in Anchorage estimate that between $300 million to $750 million in property value may actually be “unqualified” and subject to taxes. This is based on national audit standards and studies, which show that about 2% to 5% of exempt properties may be misclassified. In response to this problem, the Anchorage Assembly recently passed a resolution initiating a comprehensive review of all tax exempt properties in the city.
In Georgia, sales taxes may go up as property taxes go down. The state Senate recently approved a measure to reduce homeowner property taxes by capping valuation increases. To enact this change, the state would create new taxing districts, which would implement a 1% sales tax to offset the lost property tax revenue. Proponents of the bill say that rising property tax rates have become unmanageable for most residents, and the writers of the bill say that properties without a homestead exemption would also see some benefit. However, opponents argue that sales taxes disproportionately affect lower-income taxpayers who spend a higher percentage of their income on the goods taxed. They also point out that renters would not benefit from the property tax cuts. The bill must still be passed by the House to reach the governor’s desk.
Washington is the latest state to add a “Millionaires’ Tax.” Governor Bob Ferguson recently signed off on a new 9.9% tax on annual income over $1 million. Assets like real estate are not subject to the tax. This means that less than 0.5% of residents will pay the tax. The additional tax revenue will go toward free meals for K-12 students, eliminating the sales tax on essential products, a tax break for small businesses, and expanded tax credits for families across the state. Essential products including baby diapers, over-the-counter drugs, and hygiene products will now be tax-free. Fewer small businesses will face the Business & Occupation (B&O) tax—some will see it reduced, and others will see it eliminated completely. The Working Families Tax Credit will be available to about 460,000 additional families, providing refunds of between $300 and $1,300. Finally, about $320 million in tax revenue will go toward affordable childcare.
West Virginia finalizes a 5% state income tax cut. Governor Patrick Morrisey recently signed off on the new tax bill, which approved just half of the 10% income tax cut that the governor recommended in his State of the State address. Lawmakers attempted to find an additional 5% in tax revenue to increase the total to 10% but did not come up with a solution before the budget had to be finalized. The 5% cut will cost about $125 million in annual revenue starting in 2026. Morrisey promoted the tax cut as a way to encourage families to stay and newcomers to relocate to West Virginia. However, opponents of the tax cut argued that the state’s wealthiest taxpayers would benefit the most, while middle-income families would only reclaim $1 per week. The governor also signed into law a bill that aligns the state’s tax code with the “One Big Beautiful Bill” Act, which includes an expanded Child and Dependent Care Credit, higher contribution limits for Dependent Care Flexible Spending Accounts, full bonus depreciation for businesses, and immediate deductions for domestic research and experimental (R&E) expenditures.
Tax Planning Tips
Are your investments tax-advantaged—and if not, what needs to change?
Making smart investments is not just about identifying the right options for your portfolio. Savvy tax planning is necessary to make sure a big chunk of that income is not lost to taxes. A key step is to invest in employer benefits like 401(k) plans. In 2026, employees can contribute up to $24,500 of their annual income to 401(k) or 403(b) accounts. This allows account holders to defer paying taxes on that money until retirement.
If you have a high deductible health plan, you may be eligible for a health savings account (HSA), which allows you to save money for future medical expenses. As long as the money is used on qualified medical expenses, you do not have to pay taxes on it. If you do not qualify for an HSA, consider opening a flexible spending account (FSA), which also provides tax-free reimbursements. FSA funds must be used up within the calendar year, but recurring medical expenses like prescription glasses or contact lenses, over-the-counter medications, and vision and dental care all qualify. FSAs are also available for dependent care.
Lastly, consider where your investments are sitting. Stock exchange-traded funds and municipal bonds are tax-efficient and should go into a taxable account. Tax-inefficient investments could instead be held in a Roth IRA, which is taxed upfront but then grows tax-free. If an investment is declining in value, consider selling it in a year when you have higher capital gains, so you can claim a loss and offset those capital gains taxes.
Tax scams ramp up as the filing deadline draws near
A tax collector in the Miami-Dade area recently flagged a widely-circulating scam: fake texts telling taxpayers that they have unpaid traffic citations. Claiming to be from the Florida Department of Highway Safety and Motor Vehicles, the text message includes a link to make a payment or resolve the violation—a quick way for scammers to steal your personal information. Much like the IRS and other government agencies, motor vehicle departments do not communicate via text message. Messages like this should be reported as spam.
This is unfortunately not the only scam affecting taxpayers this year. Fake IRS emails claiming that you owe a tax debt have become common and even more convincing through the use of A.I. Other new scams include fake videos of government officials promoting fake tax benefits, fake phone calls from IRS officials who are actually A.I. generated, and even fake information in Google’s A.I. overview. Scammers are often looking to steal personal data and even tax refunds. When it comes to tax-related advice and communications, go to a trusted government website to confirm information instead of relying on general Google searches, social media, or unexpected communications you receive.
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Kwong v. United States: A Pandemic-Era Decision That Could Reshape Tax Deadlines, Penalties, and Refund Opportunities
The 2025 court decision, Kwong v. United States, is quietly gaining traction among tax professionals for exactly these reasons. Its implications could be far-reaching, potentially opening the door to refund claims, penalty abatements, and revived tax deadlines that many assumed were long closed. But there’s a catch: the opportunity to act may be time-sensitive, and the window to preserve claims could begin closing in just a few short weeks. Here’s what the court actually decided and why it matters now.
Untapped State Benefits for Veterans: Planning Opportunities for Advisors and Families
Two veteran clients with seemingly similar financial profiles can end up with very different outcomes, simply based on where they live and how informed they are. Much of that difference comes down to smaller, state-specific benefits that tend to sit just outside the typical planning checklist. But when layered alongside federal veteran benefits, they can reshape major decisions like where to buy a home or settle long-term. For advisors working with military families, recognizing how these state benefits show up in real life can go a long way in helping veteran clients feel seen, understood and better supported in the decisions ahead.
What The Heck Is A Cash Balance Plan?
One of my obsessions is about what we can do for somebody who has high earnings and not much else. When I review multiple collections of year-end tax tips, there is not much for HENRY (high earnings not rich yet) other than a couple of Captain Obvious things like maximizing 401(k) contributions. Henry doesn’t have losses to harvest and is not about to set up a private foundation or a donor advised fund. Charity begins at home. So I got excited when I saw ads about cash balance plans. Was this the great white whale that I have been seeking that is a good answer for Henry? Or is it some sort of scam? As we will see it turns out to be neither, but it is probably something you should consider for some high earners.
