The Reed Report
Week of July 21–27, 2026
A short rundown of the federal and Indiana tax news our team is watching this week — what changed, what it means, and what deadlines are coming up.
Deadlines & Rates
IRS Raises the Standard Mileage Rate to 76¢ for the Rest of 2026
In a mid-year adjustment, the IRS increased the business standard mileage rate to 76 cents per mile for travel from July 1 through December 31, 2026. The medical and moving mileage rate also rose, to 23.5 cents per mile. If your business reimburses mileage, or you track vehicle expenses for a home office or rental property, double-check that your mileage log reflects the new rate starting July 1 — using the old rate for the second half of the year will understate your deduction.
Source: Journal of Accountancy
IRS
A New “Automatic Exemption” From Penalties for Taxpayers With a Clean History
The IRS introduced an automatic penalty exemption for taxpayers with a track record of on-time filing and payment. Eligible taxpayers who slip up once won’t need to file a separate request for first-time penalty abatement — the relief is applied automatically. It’s a welcome simplification for anyone who’s had a single late notice after years of otherwise clean compliance.
Source: IRS Newsroom
Indiana
Indiana’s Tax Amnesty Program Is Open — Enroll by September 9
Indiana’s Tax Amnesty Program opened July 15 for individuals and businesses with unpaid state tax liabilities from before January 1, 2024. Taxpayers who agree to a payment plan by September 9, 2026 can have penalties and a portion of the interest waived. If you have an old Indiana balance you’ve been meaning to deal with, this is the year to do it — the amnesty terms won’t be offered again once the window closes.
Source: InkFreeNews
Rates
August 2026 Applicable Federal Rates Released
The IRS published the Applicable Federal Rates (AFRs) for August, which set the minimum interest rates for family loans, installment sales, and other related-party financing to avoid imputed-interest and gift-tax issues. If you’re structuring an intra-family loan or an installment sale of a business this quarter, these rates set the floor.
Source: Thomson Reuters Tax News
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