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TaxBuzz Top 5 - House Sets Up Senate Showdown with ACA Credit Extension, USPS Postmark Change Could Impact Tax Returns & More

TaxBuzz Top 5 - House Sets Up Senate Showdown with ACA Credit Extension, USPS Postmark Change Could Impact Tax Returns & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. House Passes 3-Year Extension Of Affordable Care Act Tax Credits, Setting Up Senate Showdown

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Credit: Justin Sullivan/Getty Images

The U.S. House of Representatives on Thursday approved legislation to extend the expired Affordable Care Act (ACA) premium tax credits for three years, marking a high-stakes opening policy fight in 2026 over health care affordability and federal tax subsidies. The measure passed 230–196 with 17 Republicans joining all House Democrats to override party leadership resistance and revive the credits that lapsed at the end of 2025. 

These enhanced tax credits, initially expanded during the COVID-19 pandemic, help lower monthly premiums for millions of Americans who buy insurance through ACA exchanges. Without them, average premiums were projected to more than double at the start of 2026, pushing coverage out of reach for many families, per CBS.

House Democrats used a discharge petition — a rare procedural maneuver that bypassed Speaker Mike Johnson’s objections — to force the vote after negotiations with Republican leadership stalled. Supporters argue the extension will provide stability and affordability for working families, calling it urgent after the credits’ expiration triggered steep premium increases nationwide. 

However, the bill now heads to the Republican-controlled Senate, where its passage is uncertain. Some GOP lawmakers are working on alternative proposals that would pair an extension with significant eligibility, funding and structural changes, or direct assistance through health savings accounts instead of broad tax credits. 

The dispute highlights broader tensions over federal tax subsidies, health care costs and competing visions of how best to provide affordable coverage — and sets up an early test of bipartisan cooperation (or continued gridlock) in the 2026 Congress.

2. California Billionaire Wealth Tax Sparks Fight Over Revenue, Mobility, and Tech Exodus

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Credit: Thomas Winz/Getty Images

A controversial ballot initiative in California is proposing a one-time 5 % tax on net worth above $1 billion, with the aim of raising roughly $100 billion for health care, public schools and food-assistance programs, a major new form of state revenue if approved by voters in November 2026. 

Backers, including labor unions like SEIU-United Healthcare Workers West and supporters such as Rep. Ro Khanna, argue the tax would make ultra-wealthy residents pay a fairer share and help close budget gaps worsened by federal spending cuts. But opponents charge it could undermine California’s economic competitiveness and even push wealthy taxpayers, and the jobs and capital they attract, out of the Golden State. 

Already, several high-profile tech billionaires have taken pre-emptive steps to relocate or restructure assets: Google co-founder Larry Page has shifted business entities and bought luxury real estate in Florida amid tax-avoidance planning, while others like Peter Thiel and David Sacks are deepening ties in states with lower tax burdens. Meanwhile, Nvidia CEO Jensen Huang has openly said he’s “perfectly fine” with the tax, underscoring a rare division among the ultra-wealthy on how to balance civic obligation and fiscal strategy.

The proposal’s design — retroactive application based on residency as of January 1, 2026 and valuation of global assets — raises legal and constitutional questions that could be tested in court if the measure qualifies for the ballot. 

3. USPS Postmark Rule Change Could Affect Tax Returns, Ballots And Time-Sensitive Mail

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Credit: Ilias Katsouras Jr/Getty Images

A new U.S. Postal Service (USPS) rule that went into effect late last year has sparked widespread concern because it changes how postmark dates are assigned to mailed items, potentially affecting tax returns, ballots and other deadline-sensitive mail. Under the updated guidance, the date printed on a postmark reflects when the mail is processed at a sorting facility, not necessarily the day it was dropped into a mailbox or taken to a local post office. That distinction, which can be days apart, could mean returns or ballots mailed “on time” might appear late by postmark standards.

Experts and official advisories warn that because many federal and state deadlines — including tax return postmark requirements and mail-in ballot cutoffs — hinge on the postmark date, the shift could inadvertently lead to missed deadlines, penalties, rejected filings or disqualified ballots if mailed too close to a statutory deadline. Similar concerns have been raised by election officials in several states who say ballots mailed on Election Day might not be postmarked that day, risking disqualification in jurisdictions that count based on postmarks.

USPS maintains the change is mainly a clarification of existing practices rather than a procedural overhaul, and that customers can still request manual same-day postmarks at post office counters or use certified or registered mail to establish mailing dates.

Nonetheless, analysts suggest taxpayers and voters mail critical documents earlier than usual or use electronic filing and official drop boxes where available to avoid issues.

4. IRS Announces First Day Of 2026 Filing Season, Tools And Resources To Help Taxpayers

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Credit: HABesen/Getty Images

The Internal Revenue Service (IRS) this week formally kicked off the 2026 federal tax-filing season, releasing details about processing of returns and rolling out a suite of updated online tools and resources aimed at helping individuals and businesses navigate filing, refunds, credits and compliance. The filing season officially begins on January 23, 2026, and the agency is urging taxpayers to file early if they expect a refund to avoid delays.

For 2026, the IRS has highlighted several enhancements designed to make tax filing easier and more accurate: expanded online assistance features, mobile-friendly guidance, interactive tax tips for common credits like the Earned Income Tax Credit (EITC), and updated where’s-my-refund tools. With changes in tax law — including recent adjustments to health-care credits and retirement savings provisions — the IRS says these resources aim to reduce errors that could otherwise slow processing.

The agency is continuing to refine its services following recent concerns raised by senators about IRS readiness for the filing season. Lawmakers had warned that staffing shifts and administrative transitions could contribute to longer wait times on refunds and support lines if the agency isn’t fully prepared. These new online tools are part of a broader push to improve taxpayer experience amid evolving tax code complexities.

Additionally, the IRS is reminding taxpayers of free filing options, including direct IRS forms and select tax software partnerships, particularly for those below certain income thresholds. VITA (Volunteer Income Tax Assistance) sites and the Tax Counseling for the Elderly (TCE) program are also available in person for qualifying individuals.

5. Gullah Geechee Community Faces Soaring Property Tax Bills And Development Pressures On Sapelo Island

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Credit: Margaret Palmer/Getty Images

A long-standing tax and development dispute on Sapelo Island, Georgia is escalating as the tax freeze that protected landowners in the historic Gullah Geechee community expired at the end of 2025, potentially causing assessed values to surge as much as tenfold and 2026 property tax bills to quintuple for many residents. Only a handful of properties with homestead exemptions would avoid sharply higher taxes, raising fears that rising levies could force families to sell ancestral lands.

This struggle is intertwined with local zoning battles and legal action dating back years. Sapelo Island’s Gullah Geechee residents have fought zoning changes and sought referendums to limit development that they say threatens their culture, community cohesion and affordable land ownership. In late 2025, Georgia’s Supreme Court allowed voters to weigh in on repealing a controversial zoning ordinance that opponents argue would open the door to larger homes and higher taxes, albeit the broader property tax threat remains as valuations reset.

Advocates and partners such as the Southern Poverty Law Center and local civic groups say the looming tax hikes are not just about money. They risk erasing one of the last intact Gullah Geechee communities in the U.S., whose roots trace back to descendants of enslaved West Africans on the Sea Islands.

Protests and organizing are underway as residents seek policy tools (like zoning reforms or tax relief measures) to protect their heritage and stave off displacement.

Which headline this week most interests you?

Feature Image Credit: Moussa81/Getty Images

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