IRS H.R. 1 Fact Sheet: Tax deductions for working Americans and seniors

The expansion of NIL opportunities has created complex tax issues for student-athletes, whose income is generally treated as self-employment business income. Common pitfalls include unreported non-cash compensation, multi-state tax exposure, weak recordkeeping and limited financial literacy, all of which heighten audit risk. As IRS scrutiny increases and new reporting rules emerge, CPAs must understand these challenges to effectively advise this growing group of taxpayers.

Cloud-based SaaS is treated as a taxable data processing service in Texas, with 80% of the sales price subject to sales tax, compared with 100% taxation for traditional software licenses. Taxpayers using SaaS in multiple states can further reduce Texas tax by allocating the software’s usage between Texas and non‑Texas locations. This often results in significant savings and may allow refunds for past overpayments.

Alternative practice structures and private equity investment are reshaping the accounting profession, creating growth and succession opportunities while raising concerns about independence, audit quality and public trust. Regulatory frameworks must evolve to ensure consistent oversight and protect public confidence.