7 tax policy shifts shaping CFO planning

Core Insights - The 2026 Tax Policy Outlook indicates that recent tax changes are transitioning into an implementation phase, with significant adjustments to corporate taxes and global tax frameworks Group 1: Tax Changes and Provisions - Bonus depreciation and targeted expensing are reinstated, allowing 100% upfront deductions for qualified manufacturing facilities placed in service before January 1, 2031, enhancing incentives for domestic production [2] - Additional IRS guidance is required to clarify eligibility and scope for properties qualifying under these provisions, indicating uncertainty among practitioners [3] - The corporate alternative minimum tax is being narrowed through guidance, with exemptions for specific sectors like insurance, shipping, and utilities, as well as the exclusion of unrealized cryptocurrency gains [4] Group 2: IRS Challenges and Enforcement - The IRS workforce has declined by approximately 25% to around 75,000 employees due to early retirements and resignations, leading to challenges in enforcement capacity and guidance issuance [6] - Ongoing turnover and funding uncertainties, along with potential legal battles and government shutdowns, may impact the IRS's operational effectiveness in 2026 [7] Group 3: Ongoing Litigation - Several significant multibillion-dollar transfer pricing disputes involving major companies such as 3M, Meta, Airbnb, and Coca-Cola remain unresolved, highlighting the complexity and scale of these legal matters [8]