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IRS Announces 2026 Inflation Adjustments and OBBBA Changes to 2025 Amounts
(Parker Tax Publishing November 2025)
The IRS announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. The IRS also modified certain sections of Rev. Proc. 2024-40, which provided the inflation adjustments for 2025, in order to reflect amendments to the Code by the One Big Beautiful Bill Act (OBBBA) (Pub. L. 119-21). Rev. Proc. 2025-32.
OBBBA Changes
The One Big Beautiful Bill Act (OBBBA) (Pub. L. 119-21) enacted the following changes to the Code which are relevant for purposes of annual inflation adjustments:
Tax Tables. Section 70101 of the OBBBA amended Code Sec. 1(j) to make the tax rate tables that were effective for tax years beginning after December 31, 2017, and before January 1, 2026, permanent. The existing seven tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37% remain in effect for individual taxpayers. The existing four tax rates of 10%, 24%, 35%, and 37% remain in effect for estates and trusts.
Credit for Adoption Expenses. Section 70402 of the OBBBA added Code Sec. 23(a)(4) which provides that so much of the credit allowed under Code Sec. 23(a)(1) as does not exceed $5,000 is treated as a refundable credit. This amount is adjusted for inflation for tax years beginning after December 31, 2025.
Child Tax Credit. Section 70104 of the OBBBA amended Code Sec. 24 to make the increased and expanded child tax credit under Code Sec. 24(h) that were effective for tax years beginning after December 31, 2017, and before January 1, 2026, permanent. In addition, the OBBBA amends Code Sec. 24(h)(2) to provide that the maximum amount of child tax credit is $2,200 for any tax year beginning in 2025. This amount is adjusted for inflation for tax years beginning after December 31, 2025.
Health Plan Premium Assistance Credit. Section 71305 of the OBBBA removed Code Sec. 36B(f)(2)(B), which limited the tax increase from excess advance payments for certain households, effective for tax years beginning after December 31, 2025. Accordingly, the inflation adjustment to Code Sec. 36B(f)(2)(B) is removed from Rev. Proc. 2025-32.
Employer Provided Childcare Credit. Section 70401 OBBBA amended Code Sec. 45F to increase the amount of employer provided childcare credit and provide for adjustment of the maximum amount of the allowable credit for inflation. Code Sec. 45F(b)(2) was amended to increase the maximum credit amounts to $500,000 ($600,000 if the employer is an eligible small business) for tax years beginning after December 31, 2025. These amounts will be adjusted for inflation for tax years beginning after December 31, 2026.
Alternative Minimum Tax. Section 70107 of the OBBBA amended Code Sec. 55(d)(4) to make the temporary increases of the exemption amounts and the phaseout threshold amounts that were effective for tax years beginning after December 31, 2017, and before January 1, 2026, permanent. Code Sec. 55(d)(4)(B) as amended provides that the $1,000,000 amount described in Code Sec. 55(d)(4)(A)(ii)(I) is not adjusted for inflation for any tax year beginning before January 1, 2027.
Standard Deduction Amounts. Section 70102 of the OBBBA amended Code Sec. 63(c)(7) to make the temporary increases of the basic standard deduction amounts provided in Code Sec. 63(c)(2) that were effective for tax years beginning after December 31, 2017, and before January 1, 2026, permanent, and further increased the base amounts. As a result, Code Sec. 63(c)(7) as amended by the OBBBA provides that, for tax years beginning after December 31, 2024, the basic standard deduction amounts provided in Code Sec. 63(c)(2) are increased to $15,750 for single individuals and married individuals filing separate returns; $23,625 for heads of households; and $31,500 for married individuals filing a joint return and surviving spouses. These amounts are adjusted for inflation for tax years beginning after 2025.
Exclusion for Amounts Received Under Educational Assistance Programs. Section 70412 of the OBBBA amended Code Sec. 127(c)(1)(B) to make the temporary expansion of the term "educational assistance" to include employer payments of principal or interest on any qualified education loan made before January 1, 2026, permanent. The maximum exclusion amount of $5,250 will be adjusted for inflation for tax years beginning after 2026.
Election to Expense Certain Depreciable Assets. Section 70306 of the OBBBA amends Code Sec. 179 by increasing the maximum amount a taxpayer may expense under Code Sec. 179(b)(1) and the phaseout threshold amount under Code Sec. 179(b)(2). The OBBBA amendments to Code Sec. 179 apply to property placed in service in tax years beginning after December 31, 2024. Under Code Sec. 179(b)(1), the maximum amount allowable is $2,500,000. Under Code Sec. 179(b)(2), the $2,500,000 amount is reduced by the amount by which the cost of Code Sec. 179 property placed in service during the tax year exceeds $4,000,000, but not below $0. These amounts are adjusted for inflation for tax years beginning after December 31, 2025.
Termination of Energy Efficient Commercial Buildings Deduction. Section 70507 of the OBBBA terminated Code Sec. 179D for property the construction of which begins after June 30, 2026.
Qualified Business Income Deduction. Section 70105 of the OBBBA amended Code Sec. 199A(i) to add a minimum deduction of $400. Additionally, a taxpayer will be required to have a minimum of $1,000 of qualified business income to be eligible for the deduction, effective for tax years beginning after December 31, 2025. The $400 and $1,000 amounts in Code Sec. 199A(i) will be adjusted for inflation for tax years beginning after 2026.
ABLE Programs. Section 70115 of the OBBBA amended Code Sec. 529A(b)(2)(B)(i) to vary the manner in which the aggregate annual limitation on contributions made after December 31, 2025, is adjusted for inflation from that provided in Code Sec. 2503(b). Accordingly, the inflation adjustment to the amount under Code Sec. 529A(b)(2)(B)(i) is separately added to Rev. Proc. 2025-32.
Estate and Gift Tax Exemption Amounts. Section 70106 of the OBBBA amends Code Sec. 2010(c)(3) by increasing the basic exclusion amount to $15,000,000 for calendar year 2026. The basic exclusion amount is a component of the applicable exclusion amount described in Code Sec. 2010(c)(2) and is used in determining the applicable credit amount against estate tax described in Code Sec. 2010(c)(1) and the applicable credit amount against gift tax described in Code Sec. 2505(a)(1). For calendar year 2026, the generation-skipping transfer exemption amount under Code Sec. 2631(c) is equal to $15,000,000. These numbers are adjusted for inflation for tax years beginning after December 31, 2026. The basic exclusion amount will be adjusted for inflation for calendar year 2027 and future years.
Reporting Payments Made in the Course of a Trade or Business. Section 70433(a) of the OBBBA amended Code Sec. 6041(a) to increase the threshold amount for reporting payments made in the course of a trade or business. Section 70433(c) and (d) of the OBBBA amended Code Sec. 6041A(a)(2) (requiring reporting for remuneration for services) and Code Sec. 3406(b)(6) (requiring backup withholding for payments reportable under Code Sec. 6041), respectively, to cross-reference the Code Sec. 6041(a) threshold. For payments made after December 31, 2025, the base threshold under Code Sec. 6041(a) is $2,000. This base threshold amount is adjusted for inflation for returns required to be filed in calendar year 2027.
Qualified Opportunity Fund Reporting. Section 70421(d)(2)(A) of the OBBBA added Code Sec. 6726, which, effective for tax years beginning after July 4, 2025, imposes a penalty for failure to file a return in the time and manner prescribed for a qualified opportunity fund or qualified rural opportunity fund under Code Sec. 6039K. Code Sec. 6726(b) provides for a penalty of $500 per day with a maximum penalty of $10,000 per return ($50,000 if the gross assets of the fund are greater than $10,000,000). Code Sec. 6726(c) provides penalties of $2,500 per day with a maximum penalty is $50,000 per return ($250,000 if the gross assets of the fund are greater than $10,000,000), if the failure to file is due to intentional disregard. These amounts are effective for tax years that begin after the enactment of the OBBBA. These amounts are adjusted for inflation for returns required to be filed in calendar years beginning after 2026.
Changes to Rev. Proc. 2024-40
Rev. Proc. 2025-32 makes the following modifications to Rev. Proc. 2024-40, which sets forth the inflation-adjusted items for 2025, in order to reflect amendments made by the OBBBA:
2025 Standard Deduction Amounts. Under Code Sec. 63(c)(7), as amended by the OBBBA, the standard deduction amounts under Code Sec. 63(c)(2) for any tax year beginning in 2025 are:
Married filing jointly and surviving spouses: $31,500
Heads of households: $23,625
Unmarried individuals other than surviving spouses and heads of households: $15,750
Married individuals filing separate returns: $15,750
Accordingly, Section 2.15(1) of Rev. Proc. 2024-40 is removed.
Sec. 179 Expensing Limit and Threshold. Code Sec. 179(b)(1) as amended by the OBBBA provides that the maximum amount allowable for expensing under Code Sec. 179 is $2,500,000 for any tax year beginning in 2025. Code Sec. 179(b)(2) as amended by the OBBBA provides that, for any tax year beginning in 2025, the $2,500,000 amount is reduced by the amount by which the cost of Code Sec. 179 property placed in service during the tax year exceeds $4,000,000, but not below $0. Accordingly, Section 2.25 of Rev. Proc. 2024-40 is removed.
2026 Inflation Adjustments
Below is a summary of the key inflation adjusted numbers for 2026 from Rev. Proc. 2025-32.
Taxable Income Subject to the Maximum Rates
For tax year 2026, the top tax rate is 37 percent for single taxpayers with incomes greater than $640,600 ($640,600 for heads of households, $768,700 for married couples filing jointly). The tax rates for income levels less than those are:
(1) 35 percent for incomes over $256,225 (single and married filing separately), $256,200 (head of household), and $512,450 (married couples filing jointly);
(2) 32 percent for incomes over $201,775 (single and married filing separately), $201,750 (head of household), and $403,550 (married couples filing jointly);
(3) 24 percent for incomes over $105,700 (single, head of household, and married filing separately), and $211,400 (married couples filing jointly);
(4) 22 percent for incomes over $50,400 (single and married filing separately), $67,450 (head of household), and $100,800 (married couples filing jointly);
(5) 12 percent for incomes over $12,400 (single and married filing separately), $17,700 (head of household), and $24,800 (married couples filing jointly);
(6) the lowest rate is 10 percent for incomes of $12,400 or less (single and married filing separately), $17,700 or less (head of household), and $24,800 or less (married couples filing jointly).
The maximum estate and trust tax rate is 37 percent on income over $16,000.
Maximum Capital Gains Rate
For tax years beginning in 2026, the maximum zero capital gain tax rate amount is $98,900 in the case of a joint return or surviving spouse, $66,200 in the case of an individual who is a head of household, $49,450 in the case of any other individual (other than an estate or trust), and $3,300 in the case of an estate or trust. The maximum 15-percent capital gain tax rate amount is $613,700 in the case of a joint return or surviving spouse, $306,850 in the case of a married individual filing a separate return, $579,600 in the case of an individual who is the head of a household, $545,500 in the case of any other individual (other than an estate or trust), and $16,250 in the case of an estate or trust.
Unearned Income of Minor Children
For 2026, the amount in Code Sec. 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,350. This $1,350 amount is the same as the amount provided in Code Sec. 63(c)(5)(A), as adjusted for inflation. The same $1,350 amount is used for purposes of Code Sec. 1(g)(7) in determining whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie tax". For example, one of the requirements for the parental election is that a child's gross income is more than the amount referenced in Code Sec. 1(g)(4)(A)(ii)(I) but less than 10 times that amount. Thus, a child's gross income for 2026 must be more than $1,350 but less than $13,500 for a parent to make the election.
Standard Deduction Amounts
The standard deduction for married filing jointly is $32,200 for 2026. For single taxpayers and married individuals filing separately, the standard deduction is $16,100 for 2026, and for heads of households, the standard deduction is $24,150 for 2026.
The standard deduction amount under for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,350, or (2) the sum of $450 and the individual's earned income.
For 2026, the additional standard deduction amount for the aged (i.e., age 65 or older) or the blind is $1,650. That additional standard deduction amount is increased to $2,050 if the individual is also unmarried and not a surviving spouse.
Itemized Deduction Limitation
The OBBBA amended Code Sec. 68(a) to provide an overall limit on the amount of otherwise allowable itemized deductions applies for tax years beginning after December 31, 2025. For individuals in the 37 percent individual income tax bracket the amount of the itemized deductions otherwise allowable for the tax year is reduced by 2/37 of the lesser of: (1) the amount of itemized deductions, or (2) the taxpayer's taxable income for the tax year (increased by itemized deductions) in excess of the dollar amount at which the 37 percent rate bracket begins.
Gross Income Limitation for a Qualifying Relative
For tax years beginning in 2026, the exemption amount referenced in Code Sec. 152(d)(1)(B) is $5,300.
Alternative Minimum Tax
The alternative minimum tax (AMT) exemption amount under Code Sec. 55(d)(1) for 2026 for unmarried individuals other than surviving spouses, married individuals filing joint returns and surviving spouses, and married individuals filing separate returns is $90,100, $140,200, and $70,100, respectively. The exemption for estates and trusts is $31,400. Under Code Sec. 55(b)(1), the excess taxable income above which the 28 percent AMT tax rate applies is $122,250 for married filing separately and $244,500 for all other taxpayers.
The AMT exemption begins to phase out at $500,000 for unmarried individuals other than surviving spouses and married individuals filing separate returns, $1,000,000 for married individuals filing joint returns and surviving spouses, and $104,800 for estates and trusts.
Earned Income Credit
The 2026 maximum earned income credit amount is $8,231 for taxpayers filing jointly who have three or more qualifying children, up from a total of $8,046 for 2025. The maximum credit for a taxpayer with no qualifying children is $664, up from $649 for 2025. Rev. Proc. 2025-32 has a table providing maximum credit amounts for other categories, income thresholds, and phase-outs.
Qualified Business Income
The qualified business income deduction under Code Sec. 199A is subject to certain limitations for taxpayers whose income exceeds a threshold amount. For tax years beginning in 2026, the threshold amount under Code Sec. 199A(e)(2) is $403,500 for married filing joint returns, $201,775 for married filing separate returns, and $197,300 for all other returns.
Limitation on Use of Cash Method of Accounting
For tax years beginning in 2026, a corporation or partnership meets the gross receipts test of Code Sec. 448(c) for any tax year if the average annual gross receipts of such entity for the three-tax-year period ending with the tax year which precedes such tax year does not exceed $32 million.
Threshold for Excess Business Loss
For tax years beginning in 2026, in determining a taxpayer's excess business loss, the amount under Code Sec. 461(l)(3)(A)(ii)(II) is $256,000 ($512,000 for joint returns).
Estate Tax Exclusion
Estates of decedents who die during 2026 have a basic exclusion amount of $15,000,000.
Valuation of Qualified Real Property in Decedent's Gross Estate
For an estate of a decedent dying in calendar year 2026, if the executor elects to use the special use valuation method under Code Sec. 2032A for qualified real property, the aggregate decrease in the value of qualified real property resulting from electing to use Code Sec. 2032A for purposes of the estate tax cannot exceed $1,460,000.
Interest on a Certain Portion of the Estate Tax Payable in Installments
For an estate of a decedent dying in calendar year 2026, the dollar amount used to determine the "2-percent portion" (for purposes of calculating interest under Code Sec. 6601(j)) of the estate tax extended as provided in Code Sec. 6166 is $1,940,000.
Penalty for Failure to File Tax Return
In the case of any return required to be filed in 2027, the amount of the addition to tax under Code Sec. 6651(a) for failure to file a tax return within 60 days of the due date of such return (determined with regard to any extensions of time for filing) must not be less than the lesser of $535 or 100 percent of the amount required to be shown as tax on such returns.
Penalty for Failure to File a Partnership Return
In the case of any partnership return required to be filed in 2027, the dollar amount used to determine the amount of the penalty under Code Sec. 6698(b)(1) is $260.
Penalty for Failure to File an S Corporation Return
In the case of any S corporation return required to be filed in 2027, the dollar amount used to determine the amount of the penalty under Code Sec. 6699(b)(1) is $260.
Limit on Employee Contributions to FSAs
The annual dollar limit for 2026 on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is $3,400. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $680.
Small Employer Health Insurance Credit
Under the Code Sec. 45R small business health care tax credit, the maximum credit for 2026 is phased out based on the employer's number of full-time equivalent employees in excess of 10 and the employer's average annual wages in excess of $34,100.
Gift Tax Exclusions
The 2026 annual exclusion for gifts is $19,000. For 2026, the exclusion from tax on a gift to a spouse who is not a U.S. citizen is $194,000.
AMT Exemption for a Child Subject to the Kiddie Tax
For 2026, for a child to whom the "kiddie tax" applies, the exemption amount under Code Sec. 55(d) and Code Sec. 59(j) for purposes of the alternative minimum tax may not exceed the sum of (1) the child's earned income for the tax year, plus (2) $9,750.
Election to Expense Certain Depreciable Assets
For 2026, the aggregate cost of any Code Sec. 179 property that a taxpayer elects to treat as an expense cannot exceed $2,560,000. The $2,560,000 limitation is reduced (but not below zero) by the amount the cost of Code Sec. 179 property placed in service during the 2026 tax year exceeds $4,090,000.
Energy Efficient Commercial Building Deduction
For tax years beginning in 2026, the applicable dollar value used to determine the maximum allowance of the deduction under Code Sec. 179D(b) is $0.59 increased (but not above $1.19) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. In addition, for tax years beginning in 2026, the applicable dollar value used to determine the increased deduction amount for certain property under Code Sec. 179D(b)(3)(A) is $2.97 increased (but not above $5.94) by $0.12 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.
Foreign Earned Income Exclusion Amount
For tax years beginning in 2026, the foreign earned income exclusion amount under Code Sec. 911(b)(2)(D)(i) is $132,900.
U.S. Savings Bond Interest Exclusion for Higher Education Expenses
The exclusion from income for U.S. savings bond interest for taxpayers who pay qualified higher education expenses, begins to phase out for modified adjusted gross income above $152,650 for joint returns and $101,800 for all other returns. The exclusion is completely phased out for modified adjusted gross income of $182,650 for joint returns and $116,800 for all other returns.
Interest on Education Loans
For tax years beginning in 2026, the $2,500 maximum deduction for interest paid on qualified education loans begins to phase out for taxpayers with modified adjusted gross income in excess of $85,000 and $175,000 for joint returns, and is completely phased out for taxpayers with modified adjusted gross income of $100,000 or more and $205,000 or more for joint returns.
Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising Campaigns
For tax years beginning in 2026, for purposes of defining the term "unrelated trade or business" for certain exempt organizations under Code Sec. 513(h)(2), "low cost articles" are articles costing $13.90 or less.
For tax years beginning in 2026, under Code Sec. 170, the $5, $25, and $50 guidelines in Section 3 of Rev. Proc. 90-12, for the value of insubstantial benefits that may be received by a donor in return for a contribution, without causing the contribution to fail to be fully deductible, are $13.90, $69.50, and $139, respectively.
Medical Savings Accounts
For 2026, for purposes of medical savings accounts, a "high deductible health plan" means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,900 and not more than $4,400, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $5,850.
For family coverage in tax years beginning in 2026, the term "high deductible health plan" means a health plan that has an annual deductible that is not less than $5,850 and not more than $8,750, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $10,700.
Long-Term Care Premiums
For 2026, the limitations for eligible long-term care premiums includible in the term "medical care" are: for individuals 40 years or less before the close of the tax year, $500; for individuals more than 40 but not more than 50, $930; more than 50 but not more than 60, $1,860; more than 60 but not more than 70, $4,960; and more than 70, $6,200.
Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or under Certain Life Insurance Contracts
For calendar year 2026, the stated dollar amount of the per diem limitation under Code Sec. 7702B(d)(4), regarding periodic payments received under a qualified long-term care insurance contract or periodic payments received under a life insurance contract that are treated as paid by reason of the death of a chronically ill individual, is $430.
Attorney Fee Award Limitation
The attorney fee award limitation is $260 per hour.
Child Adoptions
The credit allowed for an adoption in 2026 of a child with special needs is $17,670. The maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $17,670. The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $265,080 and is completely phased out for taxpayers with modified adjusted gross income of $305,080 or more.
Qualified Transportation Fringe Benefit
For tax years beginning in 2026, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $340. The monthly limitation for the fringe benefit exclusion amount for qualified parking is $340.
Certain Expenses of Elementary and Secondary School Teachers
For tax years beginning in 2026, the amount of the deduction for expenses paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by an eligible educator in the classroom is $350.
Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for Payments to Employees under Accountable Plan
For calendar year 2026, an eligible employer may pay certain welders and heavy equipment mechanics an amount of up to $23 per hour for rig-related expenses that are deemed substantiated under an accountable plan if paid in accordance with Rev. Proc. 2002-41. If the employer provides fuel or otherwise reimburses fuel expenses, up to $14 per hour is deemed substantiated if paid under Rev. Proc. 2002-41.
Refundable Credit for Coverage under a Qualified Health Plan
Section 71305 of the OBBBA removed Code Sec. 36B(f)(2)(B), which limited the tax increase from excess advance payments for certain households, effective for tax years beginning after December 31, 2025. Accordingly, the inflation adjustment to Code Sec. 36B(f)(2)(B) is removed from Rev. Proc. 2025-32.
Expatriation to Avoid Tax
For calendar year 2026, under Code Sec. 877A(g)(1)(A), unless an exception under Code Sec. 877A(g)(1)(B) applies, an individual is a covered expatriate if the individual's "average annual net income tax" for the five tax years ending before the expatriation date is more than $211,000.
Tax Responsibilities of Expatriation
For tax years beginning in 2026, the amount that would be includible in the gross income of a covered expatriate by reason of Code Sec. 877A(a)(1) is reduced (but not below zero) by $910,000.
Notice of Large Gifts Received from Foreign Persons
For tax years beginning in 2026, recipients of gifts from certain foreign persons must report these gifts if the aggregate value of gifts received in the tax year exceeds $20,573.
Persons Against Whom a Federal Tax Lien Is Not Valid
For calendar year 2026, a federal tax lien is not valid against (1) certain purchasers under Code Sec. 6323(b)(4) who purchased personal property in a casual sale for less than $2,000, or (2) a mechanic's lienor under Code Sec. 6323(b)(7) who repaired or improved certain residential property if the contract price with the owner is not more than $10,010.
Property Exempt from Levy
For calendar year 2026, the value of property exempt from levy under Code Sec. 6334(a)(2) (i.e., fuel, provisions, furniture, and other household personal effects, as well as arms for personal use, livestock, and poultry) cannot exceed $11,980. The value of property exempt from levy under Code Sec. 6334(a)(3) (books and tools necessary for the trade, business, or profession of the taxpayer) cannot exceed $5,990.
Failure to Comply with Information Reporting Requirements Relating to Qualified Opportunity Funds and Qualified Rural Opportunity Funds
In the case of any return required to be filed in 2027, the penalty amount under Code Sec. 6726 for failure to file a return in the time and manner prescribed for a qualified opportunity fund or qualified rural opportunity fund under Code Sec. 6039K is $510 per day with a maximum penalty of $10,000 per return ($51,000 if the gross assets of the fund are greater than $10,230,000). If the failure to file in the time and manner prescribed is due to intentional disregard, then the penalty is $2,550 per day with a maximum penalty is $51,000 per return ($255,000 if the gross assets of the fund are greater than $10,230,000).
Revocation or Denial of Passport in Case of Certain Tax Delinquencies
For calendar year 2026, the amount of a serious delinquent tax debt for which a taxpayer's passport may be revoked or denied is $66,000.
Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.
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