From retiree tax breaks to IRS staffing freefall and a looming tariff deadline, this week’s tax headlines reflect a fast-changing landscape for advisors and their clients.
This week’s Tax Advisor Weekly brings together six important updates shaping the tax landscape for advisors, firms, and clients. We explore Trump’s newly announced 25% tariff on India, the long-awaited increase to the slot win tax reporting threshold, and the IRS’s escalating staffing crisis—with more than 25,000 employees exiting this year alone.
Plus, we cover the IRS’s decision to expand non-English tax services, a behind-the-scenes look at how Commissioner Billy Long plans to implement the OB3 Act, and the implications of a new senior tax deduction, especially for foreign retirees navigating U.S. Social Security complexities.
1. Trump’s August 1 Tariff Deadline Puts India—and Advisors—on Alert
Yahoo Finance
Trump says India will face 25% tariffs
The Trump administration is holding firm on an August 1 deadline to impose a 25% tariff on select Indian goods, raising alarm across global markets. As part of a broader push to reassert U.S. trade leverage, Trump signaled this is just the first step in reshaping bilateral agreements.
For tax professionals, this is more than a foreign policy issue—it’s a cross-border tax exposure concern. Clients involved in import/export or global sourcing may need support navigating transfer pricing adjustments, VAT recovery strategies, or FX-related tax impacts.
2. Slot Win Reporting Threshold Increases to $2,000 in OB3
James Powel for USA Today
Trump tax bill raises slot machine win threshold
In a long-requested change from the gaming industry, the One Big Beautiful Bill (OB3) raises the threshold for mandatory casino slot win reporting from $1,200 to $2,000 starting in 2026, with inflation indexing kicking in the following year.
Why it matters: Taxpayers won’t receive a WG-2 form—or trigger machine lock-up—unless their win crosses the new threshold. This could ease operational burdens on casinos and simplify tax tracking for casual gamblers. Still, advisors should remind clients: gambling income remains taxable, and good documentation is critical.
3. IRS Workforce Drops by 25,000+ – More Cuts Likely
Kelly Phillips Erb for Forbes
IRS faces mass exodus, watchdog confirms
Between January and May 2025, the IRS lost more than 25,000 employees to early resignations, deferred exit programs, and voluntary separations—and government sources warn the number could rise further by year-end.
The result? Fewer audits, slower response times, and pressure on the agency to digitize faster. Tax firms should prepare clients for potential refund delays in 2026 and use this moment to reinforce the importance of accurate, timely filing.
4. IRS Multilingual Services at Risk Under New Trump Order
Jacob Bogage for Washington Post
IRS considers eliminating non-English language tax services
Multilingual tax support—a lifeline for millions of taxpayers—may soon disappear. According to internal communications obtained by The Washington Post, the IRS is preparing to phase out non-English language services in response to President Trump’s March 1 executive order declaring English the official language of the United States.
The directive, backed by Attorney General Pam Bondi, requires federal agencies to eliminate “unnecessary multilingual offerings” and redirect funds toward English-language acquisition. The IRS may be required to halt free interpreter services, multilingual form translations, and support across its website, notices, and social channels.
While implementation details remain unclear, the potential rollback marks a stark reversal from efforts in prior years to improve tax accessibility for Limited English Proficiency (LEP) communities. The IRS had recently renewed its interpreter contract—but only for a few months—and the future of that service is uncertain beyond 2025.
5. IRS Commissioner Billy Long Lays Out OB3 Implementation Roadmap
Michael Cohn for Accounting Today
IRS planning implementation of Trump tax bill
IRS Commissioner Billy Long is setting a clear, staged timeline for implementing the OB3 Act. Highlights include:
- 2026: Digitized W-4 rollout
- 2026–2027: Streamlined small business tax credit processing
- 2027: Enhanced refund timelines for low/moderate income filers
The IRS also plans to issue new guidance this fall around pass-through deduction expansions, adjusted depreciation rules, and real estate cost recovery. Advisors should track IRS releases closely and prepare client education materials early.
6. New Senior Deduction Adds Relief—But Not for Everyone
Virginia La Torre Jeker, J.D., for Forbes
New senior tax deduction and challenges for foreign retirees
Starting in 2026, seniors 65 and older can claim a new $3,000 tax deduction under OB3—a targeted win for retirees facing rising healthcare costs. But it gets tricky for foreign retirees receiving U.S. Social Security.
Tax treaties, residency status, and dual-filing complexities may limit eligibility or create mismatched obligations. Tax advisors working with international retirees should carefully review totalization agreements and apply country-specific guidance before claiming the deduction.
Your Takeaway This Week
No matter if you’re tracking implementation of the OB3 Act, preparing clients for a changing IRS, or translating policy shifts into client action, this week’s news offers both complexity and opportunity.
Need help making sense of what’s changed—and what’s coming next?
Talk to Harness today to explore how we support modern tax firms with expertise, technology, and solutions that scale.
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