Intelligence

The U.S. Treasury Department and IRS have proposed sweeping regulations that would eliminate tax-exempt status for private schools engaging in any form of racial discrimination, including race-conscious admissions and scholarship programs previously permitted under safe harbor provisions. These proposed rules would affect approximately 18,000 private educational institutions and 750,000 students...

Nikki Dobay and Glenn Newman explore New York City's controversial pied-à-terre tax, examining its rushed implementation, administrative challenges, and potential constitutional vulnerabilities. The discussion reveals how this new surcharge on high-value non-primary residences may face legal challenges while setting a precedent for similar taxes nationwide.

The Financial Accounting Standards Board issued Accounting Standards Update 2026-03, Fair Value Measurement (Topic 820): Investment Companies with Equity Securities Subject to Contractual Sale Restrictions, on September 9, 2026. While the update is aimed at investment company accounting, it could benefit estate planners and valuation professionals who regularly defend marketability discounts on closely held and restricted stock.

The Department of the Treasury and IRS have proposed regulations that would eliminate tax-exempt status for private schools maintaining race-based policies in admissions, scholarships, or programs—regardless of remedial or diversity objectives. The rule would affect approximately 18,000 tax-exempt schools, 750,000 students, and outstanding tax-exempt bonds, fundamentally reshaping how educational institutions approach diversity initiatives and donor-restricted scholarships.

The Treasury Department and IRS issued final regulations implementing the new deduction for qualified passenger vehicle loan interest (QPVLI), a temporary benefit created by the One, Big, Beautiful Bill Act (OBBBA) that allows individuals to deduct up to $10,000 of interest paid on certain auto loans, even if they do not itemize deductions. The final rules largely adopt the proposed regulations issued in January 2026 but include clarifications in response to public comments received by the Treasury Department.

The IRS and Treasury Department issued significant guidance in late August 2026 on Trump Accounts, CFC income calculations, and conservation easement enforcement, while federal appellate courts delivered pivotal rulings on the limited partner exception to self-employment tax and the Anti-Injunction Act's scope. These developments reshape tax compliance strategies for individuals, corporations, and partnerships navigating charitable deductions, international income allocation, and procedural challenges.