If you follow me on social media, you probably saw that I was sick over the weekend. It’s clear it’s cold/flu/virus season in the Northeast (and, from your emails, the Southeast, too). That was little consolation as I was groping around at 2 a.m. for a Tylenol and cursing the cap.

But there’s a good reason we put up with complicated medicine packaging. On September 29, 1982, three Chicago-area residents became ill and died after ingesting Extra-Strength Tylenol that was later found to be poisoned with cyanide. They were the first of seven victims to lose their lives after taking the over-the-counter pain reliever, which had been tampered with. The case triggered a national panic over the safety of nonprescription medications and led to new federal standards for tamper-resistant packaging.

More than four decades later, there’s a new name in the still-unsolved murders. Idaho investigators recently identified a man who died by suicide in 1982—previously known only as the “Unknown Wanderer”—as Dr. Mathew Betkouski, and say details from his past suggest a possible connection to the cyanide poisonings. It’s far from proof, but it’s a remarkable new lead in a case that has frustrated investigators for decades.

And then there’s the tax angle. James W. Lewis, the man investigators scrutinized for years, prepared tax returns, was convicted of mail fraud involving information stolen from tax clients, and later sent President Ronald Reagan a threatening letter complaining about federal tax policy and demanding that past-due payroll taxes for employers be abated. Somehow, one of America’s most infamous unsolved murder cases also has a surprisingly long tax paper trail.

As for me, the Tylenol did help, but between being sick and some family complications, there was simply no way I could get to Minneapolis for the Advisory Amplified Tour. Disappointing doesn’t even begin to cover it. I love traveling to meet my fellow tax professionals and talk tax. All was not lost—I lived vicariously through Facebook posts and saw that fun was definitely had. 

If you travel for work, the IRS has new per diem rates taking effect October 1, 2026. A per diem is simply a fixed daily amount you can use to substantiate certain business travel expenses instead of documenting every dollar spent on lodging, meals, and incidental expenses. Under the simplified high-low method, the rate increases to $329 per day for high-cost localities, up from $319, and $230 for other locations in the continental U.S., up from $225. For self-employed taxpayers, the rules are a little different: you generally must substantiate actual lodging costs, but can use the federal per diem rate for meals and incidental expenses.

And while you’re checking your travel records, don’t forget about business mileage. The IRS made a rare midyear adjustment to the 2026 standard mileage rates, raising the business rate from 72.5 cents to 76 cents per mile beginning July 1—which means taxpayers using the standard mileage method will need to separate mileage driven during the first and second halves of the year.

It always comes down to record-keeping, right? This is something I always tell my readers. And it made the difference in a recent case that made news.

Last week, I asked you to be the Tax Judge: Could an influencer deduct thousands of dollars spent attending the Grammys and Emmys, meeting celebrities, and participating in exclusive experiences if he used them to create social media content? Most of you (a whopping 74%) said some of them could be, depending on the particular expense and its connection to the business.

As it turns out, the judge largely agreed with you.

But the decision had another important lesson: keep excellent records. For some expenses, the taxpayer had little more than bank or credit card statements, PayPal usernames, and transaction numbers. One $1,661.57 Ticketmaster charge had no receipt identifying the event, no explanation of what he bought, and no corresponding social media post. A statement may prove that you spent money; it doesn’t necessarily prove what you bought or why it was a business expense.

The taxpayer’s attorney, Frank Agostino, believes another creator could fare differently under better facts. As he put it: “The next creator who maintains proper records, who documents business strategy, who ties expenses to business goals in real time, will win.”

Let’s talk more tax.

Q: I’m turning 73 next month, and I think that means I have to start taking my RMDs. How does that work?

A: You’re right that age 73 is an important milestone for required minimum distributions (RMDs). If you turn 73 this year, 2026 is generally your first RMD year. However, you don’t necessarily have to take that first distribution before your birthday, or even before the end of the year. For a traditional IRA, your first RMD is due by April 1, 2027. After that, you must take RMDs by December 31 each year.

But there’s a catch to waiting. If you postpone your 2026 RMD until early 2027, you’ll still need to take your 2027 RMD by December 31, 2027. That means two taxable RMDs could land in the same calendar year, potentially increasing your taxable income for 2027. Alternatively, you can take your first RMD in 2026 so the two distributions fall in separate tax years.

To determine the amount you need to take, start with the account balance as of December 31 of the previous year and divide it by the applicable life expectancy factor in the IRS tables. If that sounds complicated, don’t panic—your IRA custodian will typically calculate the amount for you. 

These rules generally apply to traditional, SEP, and SIMPLE IRAs. You don’t have to take RMDs from Roth IRAs while the original owner is alive. 

Workplace plans such as a 401(k) can have somewhat different timing rules: if you’re still working, you may be able to delay RMDs from your current employer’s plan until you retire, depending on the plan and whether you’re a 5% owner.

FBAR stands for Report of Foreign Bank and Financial Accounts. Despite the name, it’s not limited to bank accounts. A U.S. person generally must file an FBAR if they have a financial interest in or signature or other authority over foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. 

For FBAR purposes, a U.S. person includes a U.S. citizen or resident, as well as certain entities created, organized, or formed under U.S. law, such as corporations, partnerships, limited liability companies, trusts, and estates. Importantly, U.S. citizens may have an FBAR filing obligation even if they live outside the United States.

That $10,000 threshold is aggregate, not per account. So, for example, having $6,000 in one foreign account and $5,000 in another at the same time can trigger the filing requirement even though neither account individually tops $10,000. 

And yes, it’s legal to have foreign accounts. And yes, there are plenty of legitimate reasons (just ask my daughter). But filing requirements still apply.

You don’t file your FBAR with your federal income tax return. You file it electronically with the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury. FBARs are generally due April 15, with an automatic extension to October 15—you don’t need to request it. 

When the IRS first introduced the standard business mileage rate, effective in 1963, what was the rate for the first 15,000 miles?

A. 5¢
B. 10¢
C. 18¢
D. 25¢

Find the answer at the bottom of this newsletter.

This week, meet Thomas E. Bazley, CPA, a tax professional with more than 25 years of experience and the Private Client Services Technical Practice Leader at Weaver. Tom tackles the kinds of tax questions that don’t always have obvious answers—but he also has thoughts on career specialization, AI in tax, inherited wealth, and why more conversations with tax professionals should begin with, “Before I do this…” Plus, his playlist somehow makes room for Samuel Barber, AC/DC, and MC Hammer.

If you know someone who should be featured in a future Getting To Know You Tuesday, you’ll find nomination and submission information at the bottom of the post.

Do one last withholding check. With three months left in 2026, now is a good time to compare what you’ve paid in through withholding and estimated taxes with what you expect to owe for the year—especially if your income, deductions, filing status, or household situation has changed. If you’re coming up short, you can adjust your Form W-4 for the remaining pay periods or increase an estimated payment. If you’ve been significantly overwithholding, you may still have time to put a little more money back in each paycheck before year-end.

October 15, 2026 — Extended individual income tax returns due. This is the big one for individuals who requested a timely extension to file their 2025 Form 1040. (Remember, it’s an extension to file, not to pay: tax was due April 15.)

October 15, 2026 — Extended C corporation returns due. Calendar-year corporations that timely requested an extension generally must file Form 1120. 

October 5-9 — ABA Tax Section Virtual Fall Tax Meeting. CLEs will focus on federal, SALT, employee benefits, individual tax, and tax controversy, with tax attorneys and government officials participating. 

October 15-16 — National Association of State Bar Tax Sections Annual Conference, Philadelphia. Topics include digital-product sales tax, AI ethics, state conformity with the 2026 tax law, college-athlete compensation, retirement planning, and IRS enforcement priorities. 

October 22 — UCLA Tax Controversy Conference, Beverly Hills. The 42nd annual conference is specifically devoted to tax controversy and litigation and includes IRS officials and private practitioners. 

The IRS has a new app. The agency launched a new IRS mobile app on September 25, replacing IRS2Go and adding access to account balances, payment activity, certain notices and letters, transcripts, IP PINs, and other account information. So far, initial feedback on the socials has been positive.

Some farmland sellers could spread their tax bill over four years. Treasury and the IRS issued proposed regulations on the new election allowing taxpayers who sell or exchange qualifying farmland to a qualified farmer to pay the resulting tax on the gain in four equal annual installments.

The IRS is taking aim at some ETF tax strategies. New guidance targets transactions designed to move appreciated securities into ETFs without recognizing the built-in gain. In one arrangement, the IRS says what was structured as a tax-free contribution should instead be treated as a taxable exchange.

The tax world is full of interesting people. Here’s who’s making news.

Former IRS Commissioner Danny Werfel and the AICPA have launched the Council on AI Risk in Tax (CART), bringing together tax, government, legal, academic, and technology professionals to develop practical guidance for managing AI risks in tax practice and administration. The group will build on Werfel’s recently published AI risk framework, which identifies concerns ranging from hallucinations and data security to biased enforcement and overreliance on AI.

Charity Karanja of Butler Snow was selected for the ABA Tax Section's 2026–29 Loretta Collins Argrett Fellowship. She is one of five fellows selected for the 2026 class; the three-year program provides mentorship, educational programming, professional development, and opportunities for involvement and leadership within the Tax Section.

The National Association of Enrolled Agents (NAEA) reports that it passed the 10,000-member mark, and this year's IRS Tax Forums produced its strongest recruitment since the forums returned after the pandemic.

The answer is B.

The IRS introduced its simplified standard mileage method in Rev. Proc. 64-10, effective for business driving after December 31, 1962. Taxpayers could claim 10¢ per mile for the first 15,000 business miles and 7¢ per mile after that, instead of calculating actual automobile expenses.

The method was optional—taxpayers could still deduct actual costs such as gas, oil, repairs, insurance, and depreciation. And while the revenue procedure was issued in 1964, it applied to 1963 business driving, which is why 1963 is generally the starting point for the standard mileage method.

For comparison, the business mileage rate is 76¢ per mile for miles driven beginning July 1, 2026. So the standard rate has gone from a dime to more than seven times that amount—although, unlike many things in tax, the basic idea behind it hasn't changed much.

You might have seen a notification from Beehiiv that the newsletter is in the top 20% of all newsletters for open rates. I know your time is valuable, and that you have lots of ways to spend it—especially this time of year. There are pumpkins to pick, college ball to watch, and baseball to cry over (yes, we all saw that blown save). So please know I truly appreciate you spending it with me.

Thanks for reading! 💚

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