The IRS has released updated technical guidance affecting taxpayers dealing with digital assets, business interest limitations, and depreciation elections. These updates are part of ongoing efforts to clarify complex areas of tax compliance.
Key highlights include:
- Extension of temporary relief for digital assets (Notice 2026-20):Taxpayers holding digital assets through brokers may continue using alternative identification methods for transactions during the extended relief period. This is particularly relevant for crypto investors managing cost basis and reporting obligations.
- Changes to Section 163(j) elections (Revenue Procedure 2026-17):Taxpayers now have additional flexibility to withdraw prior elections related to business interest expense limitations. This includes adjustments tied to depreciation rules under Section 168(k), such as opting out of bonus depreciation.
- CFC group election flexibility: Certain controlled foreign corporation (CFC) groups may now make or revoke elections without being bound by the standard 60-month restriction period.
Additionally, through Notice 2026-23, the IRS is inviting public input for the 2026–2027 Priority Guidance Plan, which determines future regulatory focus areas.