There were so many highlights—from speaking about the One Big Beautiful Bill Act to sharing details about my volunteer income tax assistance experience (VITA) in Alaska and other pro bono opportunities like the Chester County Mobile Home Assessment Project to co-hosting a fun tax trivia game (newsletter readers would have been at a clear advantage in that one).

The biggest thrill, of course, was meeting so many tax professionals (including current and former IRS employees), taxpayers, and readers. I’m often asked where I can get my inspiration for my articles, and that’s the answer—it’s you. Whether you’re a tax professional getting a fingerprinting notice or a taxpayer struggling to understand a collection notice, you’re likely not the only one on the receiving end of that issue. 

And as the IRS shrinks (more on that in a moment), it will be up to us as a community to make sure not only that we share more information with each other, but that we share the best, timeliest, most accurate information possible. That’s what I try to do each week. It’s not lost on me that you have a lot of choices, and that your time is valuable. It means a lot to me that you choose to click through our newsletter. Thank you.

Now, let’s get into it.

Increasingly, companies have been asking (or demanding) that employees return to the office, claiming that it fosters a stronger company culture and enhances productivity. To woo employees back, or to make sure they’re not angry/hangry when ordered back, companies have been expanding perks such as on-site gyms, childcare facilities, and, of course, free food and beverages.

Beginning January 1, the food part will be more expensive for employers, meaning more of them could revert to B.Y.O.S. (Bring Your Own Snacks). Congressional Republicans, who extended so many other tax breaks (and added some new ones) in the One Big Beautiful Bill Act (OBBBA) President Donald Trump signed on July 4th, decided they would allow a current deduction for employers who provide meals and snacks to expire—except that is, for certain employees, such as those working in restaurants and in Alaskan fishing vessels and fish processing facilities. (No, we’re not making it up. The fishy part was one of the concessions Alaska Senator Lisa Murkowski extracted from her Republican colleagues for her crucial support.)

Another perk at work—but one that’s not going anywhere—is a retirement account. The rules surrounding retirement accounts? That’s another story since they are constantly changing. Retirement account owners above a certain age are required to take annual distributions from their accounts, known as required minimum distributions (RMDs). Failure to take the full distribution can incur a penalty. But there’s some good news: the penalty was recently reduced. Thanks to a recent law, the penalty is now only 25% of the amount that should have been distributed but wasn’t, instead of the longstanding 50%. In addition, the penalty can be reduced to 10% if the mistake is corrected in a timely manner, and the penalty can be avoided completely by convincing the IRS to waive it because you had a reasonable cause for missing the RMD.

As you can tell, RMDs from IRAs and 401(k)s can become a major tax burden during retirement—but you may be able to turn the tables and change RMDs from burdens into opportunities. But it takes planning. There are strategies to optimize your RMDs, including taking your RMD as a qualified charitable distribution, which would reduce taxable income. The QCD is usually the best way for those older than age 70½ to make charitable gifts. You can find more strategies (for traditional retirement accounts, not Roth accounts) here.

Speaking of retirement, Forbes has posted its list of the Best Places To Retire Abroad In 2025. The list of top 24 countries from Albania to Thailand, includes 96 recommended spots, based on costs, amenities, health care, language, crime, climate risk, and whether U.S. retirees are welcome. (Did your favorite spots make the list? Let me know!)

If you’re not sure about making a move, check out the Forbes guide to planning a foreign retirement, with real-life examples, including Baltimore-reared Larry Swift, who, at age 59, relocated with a partner to Thessaloniki, the second largest city in Greece, 300 miles north of Athens. The rent on his large three-bedroom apartment is almost $4,000 a month, but he has a view of the Aegean Sea, was able to get rid of his car, and finds the overall cost of living manageable. Plus, he says, “The food is great.”

Of course, you don’t have to move abroad to save on taxes. Just ask In-N-Out CEO Lynsi Snyder, who is relocating to Tennessee and taking a brand-new In-N-Out corporate office with her. According to Fortune, Snyder broadly references the business environment that In-N-Out faced in California as tricky to navigate. On the flip side, Forbes ranks Tennessee as the 7th most business-friendly state in the U.S. Here’s a look at three key tax benefits of In-N-Out’s move to Tennessee.

Fun fact: I’ve never been to an In-N-Out. We didn’t have one in my hometown, and I believe I’m legally required to only frequent Wawa while in Pennsylvania. I’m always fascinated by the kinds of goods and services that we frequent—loyalty can take you pretty far. A 2024 survey found that 80% consumer communities (like students, teachers, or the military) identify more strongly with their community than they do with their age group, political affiliation, or where they live. I get that. My tax community—that’s you—is where I’m most comfortable.

Our goal at Forbes is to continue building that community, and we have a few plans in motion to make that happen. Keep an eye out in future editions of the newsletter—we’ll share those details as soon as we’re able. 

Enjoy your weekend,

Kelly

I’m really interested in the people who are complaining about gambling limits in the new tax law. I didn’t even know that you could deduct your losses at all! How does that work?

Casual gamblers—those who aren't in the trade or business of gambling—must report and pay taxes on any winnings. Winnings include those from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.

Under current law, you can also deduct your gambling losses, but only if you itemize your deductions on Schedule A. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Importantly, you must keep a record of your winnings and losses. Here’s an example. Let’s assume you have winnings of $50,000 and losses of $50,000. You can deduct all of your losses.

(Professional gamblers—those who consider gambling to be their trade or business—report their gambling activity on Schedule C. Professional gamblers have the benefit of deducting ordinary and necessary business expenses in addition to losses. Any net income is subject to self-employment taxes.)

Under the One Big Beautiful Bill Act, beginning in 2026, you can deduct only up to 90% of the amount of your losses during the taxable year (you can still deduct your related business expenses if you were a professional gambler). Here’s an example: Let’s assume you have winnings of $50,000 and losses of $50,000. You can only deduct $45,000 in losses (90% of $50,000). That means you are paying tax on $5,000 of income even though you broke even at the slots/table/casino. 

You can see why high-dollar gamblers in particular, are incensed: this has the potential to add thousands (or more) to their tax bill. As noted in a previous newsletter, members of Congress are already walking the provision back. Rep. Troy Nehls (R-Texas), who voted yes on OBBBA, is cosponsoring legislation to reverse the provision.

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➤ Small Business/Self-Employed (SB/SE) helps small business and self-employed taxpayers understand and meet their tax obligations. SB/SE reported a 35% reduction.

➤ The Human Capital Office (HCO) supports IRS employees with Human Resource topics. HCO reported a 28% reduction.

➤ Information Technology (IT) supports IRS employees by delivering IT services and solutions. IT reported a 25% reduction.

➤ Tax Exempt & Government Entities (TE/GE) helps taxpayers with pension plans, exempt organizations, and government entities comply with tax laws. TE/GE reported a 25% reduction.

➤ Taxpayer Services (TS) helps taxpayers understand and comply with tax laws. TS reported a 20% reduction.

➤ Large Business and International (LB&I) helps corporations and partnerships with assets greater than $10 million to comply with tax laws, including emerging international issues. LB&I reported a 19% reduction.

Every state and the District of Columbia and Puerto Rico have been impacted by the reductions.

GILTI is part of the international tax system. Before the enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), many U.S. shareholders with interests in controlled foreign corporations (“CFCs”) could defer income tax on the CFC’s non-passive or “active” trade or business income. A CFC is a foreign corporation registered and operating in a jurisdiction different from that of its controlling owners. In the U.S., this means a company where at least half of its shareholders are U.S. shareholders, based on voting power or the total value of the company (other rules may apply).

Before the TCJA, instead of paying income tax on the CFC’s business income each year, U.S. shareholders paid income tax only when the funds earned from the CFC’s business were repatriated to them in the form of a dividend. The TCJA modified the deferral rules, requiring U.S. shareholders to report most active business income of a CFC as a GILTI inclusion, even if the funds were never repatriated to the U.S. (If this sounds familiar, it’s related to the repatriation tax provisions raised in a recent Supreme Court case, Moore v. U.S.)

OBBBA makes several important revisions to the GILTI framework. As an initial matter, it eliminates the GILTI inclusion reduction for a net deemed tangible income return (NDTIR). Because foreign corporations no longer receive an NDTIR for eligible depreciable assets, U.S. shareholders may see an increase in Net CFC Tested Income and as a result, an increase in tax.

OBBBA also permits U.S. corporate shareholders (or individual shareholders with a Code section 962 election) to claim a deemed foreign tax credit with respect to the Net CFC Tested Income amounts—these shareholders may claim an increased 90% of the foreign taxes allocable to the income.

You’re likely getting the sense that the U.S. tax rules associated with CFCs are complex and nuanced. That’s certainly true. If you have an interest in a CFC, be sure to consult with your tax advisor to find out how these changes might impact you.