4 Federal Tax Updates Businesses Should Know This Fall
Federal tax guidance can shift quickly, and not every update will apply to every business. Still, several recent Treasury and IRS developments are worth watching because they affect education, research spending, large corporate compliance, and clean fuel production.
Here are four updates business owners and finance teams should have on their radar.
1. Proposed tax-exempt rules for private schools
Treasury and the IRS have proposed regulations that would clarify when a private school can qualify for federal tax-exempt status under Section 501(c)(3).
Under the proposed rule, a private educational institution would not qualify for federal tax-exempt status if it maintains or enforces policies that discriminate based on race, color, or national or ethnic origin.
The proposal would apply across areas such as admissions, scholarships, athletics, educational policies, and other school-supported programs. It would cover private K-12 schools, colleges, universities, professional schools, and trade schools.
The rules are still proposed, so affected institutions should monitor the Federal Register proposal and review their policies before the regulations become final.
2. New procedures for research and experimental costs
Businesses with research or experimental expenditures should review Revenue Procedure 2026-32.
The guidance explains how businesses can obtain automatic IRS consent to change certain accounting methods related to research and experimental expenditures under Sections 174 and 174A.
For companies with significant research spending, this matters because the way those costs are treated can affect deductions, timing, and tax reporting. Businesses that have changed or plan to change how they account for research expenses should review the new procedures with their tax professional.
3. 2027 Compliance Assurance Process applications are open
The IRS has opened applications for the 2027 Compliance Assurance Process, or CAP.
CAP is designed for qualifying large corporate taxpayers and allows certain tax issues to be identified and addressed with the IRS before a return is filed. The goal is to give participating companies more certainty around significant tax positions.
Applications are open through October 30, 2026, with acceptance decisions expected in February 2027.
4. Updated guidance for the 45Z Clean Fuel Production Tax Credit
Businesses involved in agriculture, renewable fuels, or biofuel production should review the latest guidance on the Section 45Z Clean Fuel Production Tax Credit.
Notice 2026-53 provides the 2026 emissions rate table used to calculate the credit and includes additional guidance on areas such as manure-derived fuels and regenerative agricultural practices.
For businesses in these sectors, the updated guidance may affect how eligibility and credit amounts are determined.
Why these updates matter
These four developments apply to very different types of organizations, but the takeaway is the same: tax planning is easier when new rules are reviewed before they affect a return.
At Phoenix Accounting, we help individuals and business owners stay organized, maintain accurate financial records, and prepare for tax season with greater confidence. If you have questions about your bookkeeping, tax documents, or financial records, click here to contact us for expert support.
This article is for general informational purposes only and is not intended as tax, legal, or cybersecurity advice.