Week in Tax — July 3, 2026: IRS Resolves Gift Tax Question on Trump Account Contributions
Five items from a holiday-shortened week in federal tax — June 24 through July 3, 2026.
Welcome to the first issue of Week in Tax. The biggest practitioner news this week: the IRS closed a gift-tax filing question that’s been sitting open since Trump Accounts launched, and quietly reorganized the office that oversees PTINs and EA discipline.
1. IRS Eliminates Gift Tax Filing Requirement for Most Trump Account Contributions
Treasury and the IRS issued Revenue Procedure 2026-25 on June 29, creating a safe harbor that treats qualifying Trump Account contributions as completed gifts eligible for the annual exclusion — not gifts of a future interest, which had been the open question since Section 530A accounts launched. If a donor’s only taxable gifts in a year are cash contributions to Trump Accounts under the $19,000 per-beneficiary annual exclusion, no Form 709 is required. With nearly six million Trump Account elections already filed, this removes a real compliance burden for grandparents and other donors making contributions on behalf of minors.
What this means for you: Pull your client list for anyone who funded a Trump Account in 2026 expecting to file Form 709 — tell them this week that they likely don’t need to, provided they meet the four safe-harbor conditions in Section 4.02 of the revenue procedure.
Source: Rev. Proc. 2026-25; IR-2026-80, June 29, 2026
2. IRS Merges Return Preparer Office and OPR Into New Tax Professional Management Office
Effective June 28, the IRS folded the Return Preparer Office (PTINs, AFSP, CE providers) and the Office of Professional Responsibility (EA/CPA/attorney discipline under Circular 230) into a single Tax Professional Management Office, led by Chris Pleffner. The IRS says the missions of RPO and OPR remain intact and will continue operating independently within the new structure — this is an organizational merger, not a policy change to credentialing or discipline standards.
What this means for you: No action needed yet, but watch for changes to where PTIN renewal, CE provider approval, or OPR complaint correspondence gets routed — a structural merger like this often means new mailing addresses or portal logins within the next few months.
Source: IRS Statement on TPMO, June 28, 2026
3. IRS Updates Collection Financial Standards — Effective Now for Every Open OIC and Installment Agreement
The IRS released its 2026 Allowable Living Expense standards on June 29, effective immediately for all financial analyses conducted on or after that date. National Standards for a one-person household rose to $867/month (food, housekeeping, apparel, personal care, and miscellaneous combined), with corresponding increases to local housing/utilities and transportation figures. These standards drive every Offer in Compromise Reasonable Collection Potential calculation, Currently Not Collectible determination, and installment agreement payment amount.
What this means for you: Any OIC, CNC request, or installment agreement proposal you’re preparing or have pending needs to be recalculated against the June 29, 2026 standards before submission — using stale 2025 figures on a Form 433-A or 433-F filed now risks rejection or a miscalculated ability-to-pay figure.
Source: IRS Collection Financial Standards, effective June 29, 2026
4. IRS Issues Transitional Guidance on Qualified Opportunity Zones Under OBBBA
The IRS released Notice 2026-40, providing transitional guidance on Qualified Opportunity Zones as the program shifts from its original fixed-sunset structure to the permanent, rolling-designation framework created by OBBBA Section 70421. The notice confirms that gain deferred under the original OZ program must be recognized on December 31, 2026 and cannot be re-deferred into a new fund, while also creating transition relief — including a working capital safe harbor — for existing Qualified Opportunity Funds and QOZ businesses operating in zones designated before the new law.
What this means for you: If any client holds a pre-OBBBA QOF investment, the December 31, 2026 mandatory gain recognition date needs to be on their radar now, not in November — and any client running a QOZ business who wants to keep acquiring property in a previously designated zone after 2026 needs a written working capital plan adopted by December 31, 2026.
Source: Notice 2026-40 (IRB 2026-28, July 6, 2026)
5. ⚠ PRACTITIONER WATCH: Form 5500 Deadline for Calendar-Year Retirement Plans
Form 5500 for calendar-year retirement plans is due July 31, 2026. This deadline catches small-firm clients off guard every year because it falls outside the usual April/September/October filing rhythm — and unlike individual returns, there’s no automatic extension. A separate Form 5558 must be filed by July 31 to push the deadline to October 15.
What this means for you: If any client maintains a calendar-year 401(k), profit-sharing, or other ERISA retirement plan, confirm now whether the Form 5500 is being handled in-house, by a TPA, or needs your attention — and if more time is needed, file Form 5558 before July 31, not after.
Source: ERISA Title I; IRS Form 5500 instructions
Next Tuesday, July 7: A deep dive into the OBBBA — every provision that actually affects your clients, in plain English, straight from primary source.
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Educational analysis for licensed practitioners only. Not legal or tax advice.