This week’s tax advisor weekly news roundup includes: a podcast on scaling modern tax advisory firms amid growing automation and the decline of compliance-only models, new state tax changes taking effect July 1 including Washington’s new 35% top estate tax rate and various excise tax adjustments, and questions around how states may tax the record-setting $3.87 billion in online sports betting activity from early 2025. We also cover the AICPA’s latest recommendations to the Senate Finance Committee on SALT deductibility for passthroughs, excess business loss carryforwards, and personal casualty loss limits. Finally, the National Taxpayer Advocate warns that despite a smooth 2025 filing season, the 2026 season is at risk due to IRS staffing cuts, with headcount expected to fall from 102,000 to under 76,000.
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Figuring Out: Scaling Modern Tax Advisory Firms | Podcast #EP39
David Snider for MYCPE ONE
In this episode, Saul sits down with David Snider, our Founder and CEO, a seasoned advisor and forward-thinking tax strategist, for a candid conversation about the state of the tax industry. As automation accelerates and client expectations evolve, firms that remain focused solely on compliance are being left behind. What does it really take to build a future-ready tax firm? David shares decades of experience, practical insights, and a touch of humor to explore how firms can adapt and lead in a rapidly changing environment.
State Tax Changes Taking Effect July 1, 2025
Summer has arrived, and states are beginning to implement policy changes that were enacted during this year’s legislative session (or that have delayed effective dates or are being phased in over time). Generally, most state individual and corporate income tax changes take effect on January 1, the beginning of the calendar year, for consistency through the tax year. However, some important tax policy changes take effect on July 1, which is the beginning of the fiscal year for all states except Alabama, Michigan, New York, and Texas. Among the state tax changes that most commonly take effect on July 1 are excise and sales tax changes, though states made notable changes elsewhere as well, such as Washington’s implementation of a new estate tax rate schedule with a top rate of 35 percent.
Is Your State Coming For Your Online Sports Bets?
Kate Schubel for Kiplinger
Many have been glued to their television screens watching the World Series and the National Basketball Association (NBA) finals. But if you’re placing bets on your favorite teams, watch out. Your state might be coming for those winnings. Online sports betting has grown in recent years, with the American Gaming Association reporting a record-breaking $3.87 billion in the first few months of 2025 alone. However, with the rise of sports betting comes the unfortunate potentiality of higher taxes on gambling wins and losses.
AICPA proposes changes to Senate bill that would help most US businesses
Martha Waggoner for Journal of Accountancy
The AICPA submitted a letter with comments Monday on the Senate Finance Committee reconciliation bill, recommending three changes it said would put most U.S. businesses and many family-owned businesses, known as passthrough entities (PTEs), on more even tax footing when compared with corporations. Retain full deductibility of state and local taxes (SALT) for all passthrough entities; Allow excess business loss carryforwards to offset business and nonbusiness income; and Repeal the personal casualty loss limitation.
IRS staffing, budget cuts threaten 2026 filing season, taxpayer advocate says
Martha Waggoner for The Tax Adviser
The IRS had “one of the most successful filing seasons in recent history” in 2025, but the 2026 season is at risk because of job losses and funding cuts, the National Taxpayer Advocate (NTA) said Wednesday in a midyear report to Congress. The IRS processed about 138 million of the nearly 141 million individual income tax returns that it received in the 2025 filing season. Over 95% were filed electronically, and about 62% resulted in refunds. As of June, the IRS workforce had decreased by over 25% to fewer than 76,000 from the 102,000 employees at the agency at the start of the filing season, NTA Erin Collins said in the Fiscal Year 2026 Objectives Report to Congress. The figure takes into account employees who accepted an early resignation offer but remain on the rolls through Sept. 30, the report said.
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