IRS Tweaks Income Taxes: Zzz, Nothing to See Here.
Published Date: 8/21/2026
Rule
Summary
No summary available.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Dollar-QBU: Section 987 vs. Section 988 Rules
If a qualified business unit (QBU) uses the U.S. dollar as its functional currency (a "dollar QBU"), section 987 generally does not apply to that QBU and a controlled foreign corporation (CFC) that owns the dollar QBU must apply section 988 to items reflected on the QBU's books. A CFC owner may elect to apply section 987 to a dollar QBU instead, and for items treated as effectively connected income the rules specify whether gain or loss is measured in the owner's functional currency or the U.S. dollar.
Election and Mark-to-Market Rules, With Limits
The rule specifies several elections (for a CFC to apply section 987 to a dollar QBU; to use a foreign-currency mark-to-market method; to translate all items at a yearly average rate; and an annual deemed termination election) and sets conditions. Special limits include that a QBU-by-QBU deemed-termination election is allowed when the QBU's recognized section 987 loss under the election would be $1,000,000 or less, and fresh start or other taxpayers may only make certain elections if the controlled group aggregate section 987 loss does not exceed $5,000,000.
Temporary Applicability and Expiration Dates
This reinstated temporary rule section applies to certain taxable years beginning on or after December 7, 2016, with other provisions applying to taxable years beginning one year after the first day of the first taxable year following December 7, 2016, and the section's applicability expires on December 6, 2019. The CFR correction reinstates Sec. 1.987-1T as revised in the April 1, 2026 edition of Title 26.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-11140, Federal Independent Dispute Resolution Operations
Starting soon, health plans and insurers must share clearer info when they pay or deny surprise medical bills. They’ll use special codes to explain these decisions, especially when dealing with folks they don’t have contracts with. This helps patients and providers understand bills better and speeds up fixing disputes, with no extra costs for most people.
2025-18278, Occupations That Customarily and Regularly Received Tips; Definition of Qualified Tips
If you earn tips at work, these new rules show which jobs count as tip-earning and explain what counts as 'qualified tips' for tax deductions. The changes apply to tips received up to December 31, 2024, helping workers and employers know exactly what tips can lower their taxes. Get ready to keep better track of your tips and maybe save some money when tax time rolls around!
2025-02251, Administrative Requirements for an Election To Exclude Applicable Unincorporated Organizations From the Application of Subchapter K; Hearing Cancellation
If you run an unincorporated organization, new rules are coming to help you skip some tricky partnership tax laws. These changes explain how to make that election properly, so you don’t get caught in confusing tax stuff. No extra fees or deadlines yet, but keep an eye out for updates to stay ahead!
2026-17123, Guidance on Eligible Investments for Trump Accounts
This document contains proposed regulations relating to Trump accounts. The proposed regulations would provide guidance regarding eligible investments, which are the only assets in which Trump account funds may be invested before the first day of the calendar year in which the account beneficiary attains age 18. The proposed regulations would affect account beneficiaries and trustees of Trump accounts.
2026-17133, Privacy Act of 1974; Matching Program
Pursuant to section 552a(e)(12) of the Privacy Act of 1974, as amended, and the Office of Management and Budget (OMB) Circular No. A- 108, Federal Agency Responsibilities for Review, Reporting, and Publication under the Privacy Act, notice is hereby given of the conduct of the Internal Revenue Service (IRS) Disclosure of Information to Federal, State and Local Agencies (DIFSLA) Computer Matching Program. The Louisiana Department of Health is modifying the Computer Matching Agreement to amend the programs administered, and the Louisiana Department of Children and Families will no longer participate in the DIFSLA Program.
2026-16985, Application of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to the Refunded Portion of Certain Federal Refundable Tax Credits
Starting soon, certain tax credits like the child tax credit and earned income credit will have new rules for who can get the refunded part. If you’re not a 'qualified alien' under a 1996 law, you won’t be able to claim these refunds anymore. This change mainly affects some immigrants and kicks in after public feedback and hearings this fall, so keep an eye on deadlines if you’re impacted!
Previous / Next Documents
Previous: 2026-17148, Fisheries of the Northeastern United States; Mackerel, Squid, and Butterfish; 2026 Illex Squid Quota Harvested
NMFS is closing the directed Illex squid fishery in Federal waters based on a projection that 96 percent of the 2026 domestic annual harvest (DAH) will be harvested. This closure is effective 0001 hour (hr) local time on August 23, 2026, through 2400 hr local time on December 31, 2026. This action is necessary to comply with the regulations implementing the Mackerel, Squid, and Butterfish Fishery Management Plan (FMP), and is intended to prevent the 2026 Illex squid annual catch limit from being exceeded.
Next: 2026-17155, Agency Information Collection Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Procedures for Submissions by Certain Steel and Aluminum Producers Committing to New U.S. Steel or Aluminum Production To Obtain Tariff Adjustments Under Proclamation 10984