Startup Tax News and Updates
Practitioners ask for more guidance on the domestic R&D election
In a February 2026 letter to Treasury and the IRS, the AICPA asked for clarification of the Section 174A(c) election under Revenue Procedure 2025-28. The requests include whether the election is a method of accounting or a yearly election, and whether it can be made project by project. No final answer has been confirmed on this site, so check for updated guidance before making the election. Read the coverage. See our Section 174A guide.
IRS has released tax year 2026 inflation adjustments
The IRS has published its annual inflation adjustments for tax year 2026, reflecting changes made by the 2025 federal budget law commonly called the One Big Beautiful Bill Act. Founders should check how the adjusted figures affect their planning, including the inflation-adjusted QSBS limits that apply after 2026. Visit the IRS newsroom. Secondary coverage: TSCPA summary.
Internal Revenue Bulletin 2026-36 released
The IRS has released Internal Revenue Bulletin 2026-36, which publishes official tax guidance. Some items may affect startups, including research and equity compensation positions. Read the bulletin itself for any item relevant to your company. Coverage of the release.
What to watch next
- 83(b) timing: Any new restricted stock grant needs an election within 30 days. See founder taxes.
- QSBS tracking: Record the gross asset figure at each stock issuance. See QSBS.
News items are general information and are not tax advice. Verify all figures and deadlines on irs.gov and consult a qualified CPA before acting. We add items only after verification and mark the date of each update.