The Reed Report: Week of Oct 5–11, 2026

On October 6 the IRS issued Rev. Proc. 2026-20. It replaces last year’s Rev. Proc. 2025-31 and sets out a safe harbor that lets certain trusts stake their digital assets without losing their status as investment trusts and grantor trusts. That status matters because it keeps the trust from being taxed as a business entity, so income flows straight through to the investors. The rules cover proof-of-stake assets held by trusts that hold cash and only one type of digital asset, with the assets controlled by qualified custodians.

The update answers industry pushback on the 2025 version. Assets can now be spread across more than one custodian, and staking rewards, net of expenses, must be passed out to investors in kind or in cash within 60 days after the end of the quarter in which the trust receives them. Trusts relying on the old procedure have six months to amend their trust agreements and procedures.

On October 7 the IRS said its Whistleblower Office helped HM Revenue & Customs get the UK’s new Strengthened Reward Scheme up and running. That program launched in November 2025 to pay for tips on serious tax avoidance and evasion by the wealthiest individuals and largest businesses. Both agencies said modern evasion often runs through offshore accounts, shell companies and structures that cross borders, and that insiders are often the only way to untangle them.

The release lists the kinds of tips it wants: undisclosed foreign bank accounts and unfiled FBARs, assets hidden in foreign trusts or anonymous entities, money laundering, and cross-border profit shifting. Whistleblowers don’t have to be U.S. citizens or residents to collect an award.

As harvest got going, Indiana farm groups welcomed Governor Braun’s latest relief package. The state won’t collect its Gasoline Use Tax or Gasoline Excise Tax through November 4. A companion executive order lifts the special-fuel restrictions on dyed diesel, so farmers and timber harvesters can run that untaxed fuel in any vehicle hauling farm or timber products on Indiana roads. Normally dyed diesel is limited to off-road use.

Farm groups put the savings at about 64 cents a gallon on on-road diesel, and up to $2,000 for a family farm. They also noted that diesel prices have climbed more than $2 a gallon since spring. One farmer quoted said what growers really need is certainty through the end of harvest, since the relief has been renewed only month to month.

Executors who want an estate tax closing letter (Letter 627) from the IRS will pay more soon. Final regulations raise the user fee from $56 to $76 for requests the IRS receives on or after October 26, 2026. The IRS says the new amount covers the program’s cost, based on a review that found about 8,000 requests a year.

A closing letter confirms that the IRS has accepted an estate tax return. Banks, title companies and beneficiaries often want to see one before an estate is finally distributed. The fee is optional, since an account transcript can serve the same purpose at no cost, but anyone planning to request a letter can save $20 by doing it before the 26th.