New Tax Rules and Fresh Opportunities: What You Need to Know.

When it comes to tax law, every move counts — and much like a high-stakes game of chess, staying a step ahead can make all the difference. Each new piece of legislation, IRS enforcement shift, or savings opportunity reshapes the board, creating new risks and advantages. In today’s rapidly changing tax landscape, knowing when to act, when to pivot, and when to hold your position is critical. Below, we break down the latest tax developments — from new savings strategies to IRS crackdowns — so you can stay several moves ahead and protect your financial future.

ABLE Accounts Get a Boost for Disabled Individuals

If you or a loved one qualifies for an ABLE account, there’s good news on the horizon. These state-run savings plans, designed to help people with disabilities save for qualified expenses without jeopardizing government benefits, are becoming even more accessible. Starting in 2026, the age limit to open an ABLE account will increase from 26 to 46 — a big change that opens the door to more people who become disabled later in life. Contributions are still capped at $19,000 annually, but that’s a meaningful tax-advantaged opportunity. Even better, balances under $100,000 won’t impact eligibility for SSI, and distributions used for things like housing, education, transportation, or assistive tech remain tax-free. For families planning long-term support, this tool is worth a fresh look.

IRS Intensifies Crackdown on Abusive Tax Schemes

The IRS is tightening the screws on tax avoidance schemes. Whether it's overstated deductions, improper COVID-era credits, or shady Form 1040 tricks, the agency is actively enforcing its so-called “Dirty Dozen” list of red-flag tax maneuvers. They’re targeting promoters as well as participants, and with increased audit technology and funding (more on that in a moment), they’re more equipped than ever to catch errors or intentional misreporting. For taxpayers working with advisors — especially on complex filings — now is the time to be vigilant. We always recommend transparency and due diligence when claiming deductions or credits.

Trump’s “Gold Card” Visa: A Tax Break for the Ultra-Wealthy

In an effort to attract high-net-worth individuals, a proposal is circulating for a U.S. “gold card” visa. For a $5 million investment, foreign nationals could gain a five-year path to U.S. citizenship. What makes this eye-catching for tax professionals is the loophole: these visa holders would only be taxed on U.S.-sourced income — unlike typical U.S. citizens or residents, who are taxed on their global earnings. This provision creates a potential tax shield for wealthy foreign investors looking to relocate or establish a financial presence in the U.S. While details are still emerging, it’s a topic worth watching, particularly for clients with international interests or who advise cross-border investors.

IRS Budget Cuts Could Impact Enforcement and Taxpayer Services

Although the Inflation Reduction Act initially granted the IRS $80 billion over ten years to modernize and expand enforcement, Congress is already dialing that back. Over $20 billion has been clawed back in recent legislation, and more cuts could follow. Practically speaking, this could mean fewer audits and slower response times, but also potential delays in long-overdue tech upgrades and service improvements. While fewer audits may sound appealing, a less equipped IRS could introduce more uncertainty and frustration for compliant taxpayers trying to resolve issues or get answers.

Thank you for reading, and remember, every move counts.

All the best,

MD

Reference: The Kiplinger Tax Letter: Vol.100, No. 7, Page 4