The IRS and other federal agencies have proposed new rules that could expand employers' ability to provide fertility benefits to employees as early as plan years starting Jan. 1, 2027. If finalized, the rules would create a new category of "limited excepted benefits" for fertility care, allowing services such as in vitro fertilization, fertility medications, and infertility diagnosis and treatment to be offered outside many Affordable Care Act requirements, if certain conditions are met.
Plans could include a lifetime benefit cap of up to $120,000 per participant (adjusted for inflation). Premiums could be paid with pre-tax dollars, potentially reducing employer and employee tax liabilities.
When related business entities operate across state or national borders, they must follow transfer pricing rules. These rules require intercompany prices for goods, services or intellectual property to be comparable to prices that unrelated parties would use in arm's-length transactions. Taxing authorities may scrutinize pricing that shifts profits to lower-tax jurisdictions. Noncompliance can lead to back taxes, interest and penalties.
If your business already operates with related entities across borders, or is planning to do so, choose appropriate pricing methods, create or update transfer pricing policies, and maintain supporting documentation. Contact your Porte Brown tax advisor for more information.
The IRS released updated FAQs on Section 127 educational assistance programs, covering eligibility, tax treatment and recent legislative updates. Employees may exclude from their income up to $5,250 (adjusted for inflation after 2026) in combined benefits annually. Excess amounts are taxable, and no carry forward is allowed. Plans must be written, cover only employees and meet nondiscrimination rules.
Eligible expenses include tuition, fees, books, supplies, equipment, and interest or principal on qualified student loans. Meals, lodging and transportation do not qualify. Employers and employees should review these rules to ensure compliance and maximize benefits. Have questions? Your tax advisor can help.
Importers awaiting tariff refunds should ensure their banking information is up to date, because some payments are on hold pending account verification. Approximately $35.5 billion in refunds is currently being issued to importers who filed for refunds after the U.S. Supreme Court ruled certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal.
A May 12, 2026, court filing states that payments processed through the new online government portal at cbp.gov will include interest on duties paid. To date, nearly 87,000 declarations have been validated, and over 8.3 million entries have been reprocessed to remove IEEPA duties.
In May 2026, the IRS reinstated a previously discarded policy that allows taxpayers to request private letter rulings (PLRs) from the IRS, but only for "significant issues" arising in corporate transactions. In the past, the IRS would, when requested, review entire proposed transactions. This could be time consuming and costly. Now, the agency will issue PLRs only on specific legal questions without ruling on the entire transaction.
A business, for example, might ask whether asset transfers following a reorganization would jeopardize its deal's tax-free treatment. PLRs can help business owners make better decisions about transaction planning and structuring. To learn more, contact your tax advisor.
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