With the Tax Cuts and Jobs Act (TCJA) sunsetting at the dawn of 2025, the US tax landscape is up for a major overhaul. Many of the tax benefits introduced by TCJA in 2017 will phase out too, potentially increasing taxes for high-income and high-net-worth individuals.
It marks an important turning point for the income tax code and may bring possible hikes in income and capital gains tax rates.
- For high-net-worth individuals (HNWIs), this means revisiting how their assets are structured, managed, and reported — both at home and abroad.
- For CPAs, this adds another layer of complexity that goes beyond standard tax filing. Managing global wealth now requires a proactive approach and deep knowledge of tax laws worldwide.
Major Tax Changes Ahead: What HNW Individuals Must Know
If TCJA’s individual provisions are not extended, possible results include:
- Higher taxes on wages, business income, dividends, and long-term investments
- Reduced estate tax protections
- More complex wealth transfer strategies
- Tighter reporting obligations for foreign accounts, trusts, and offshore investments
This is why 2025 is the last major planning year before rules reset.
Upcoming Tax Changes: What to Look Out For
Rising Income Tax & Capital Gains Exposure
In 2026, high-income earners may see their tax brackets shift upward. Capital gains rules could also become stricter. There could also be an increase in taxes on investment income, equity compensation, and major asset sales.
For accounting firms, this means more detailed planning. Firms will need to help clients decide when to realize gains and how to structure their income to reduce unnecessary tax exposure.
Possible Wealth Tax Implementation
Lawmakers are exploring newer ways to tax high-value estates and unrealized gains. While the exact form of a potential wealth tax is still unclear, global assets — including offshore trusts and foreign portfolios – may come under greater scrutiny. This makes offshore tax planning and transparent asset valuation even more essential for CPA firms.
IRS’s Expanding Oversight on Global Wealth
The IRS is tightening its focus on global wealth. Digital asset monitoring and stronger FATCA and FBAR enforcement are making it difficult for high-net-worth clients to hide their offshore assets. CPAs and accounting firms must brace themselves to manage both U.S. and international reporting requirements with absolute accuracy.
The Impact Global Structures
The upcoming changes are going to significantly impact our future investment decisions, estate strategies, and offshore holdings. Successful high-net-worth tax planning will require a holistic approach that blends U.S. and international accounting oversight.
Partnering with KnowVisory Global gives US firms access to a seasoned team of experts proficient in providing IRS-compliant tax services, multi-state filings, and offshore bookkeeping support. Our CPAs and tax specialists can guide you through upcoming global tax reforms and make confident and profitable business decisions.
Offshore Assets and Cross-Border Challenges
HNWIs often invest and manage investments across several countries. While this offers significant growth opportunities, it also brings along many challenges, like:
Complex Reporting Obligations
U.S. taxpayers with offshore holdings must comply with FBAR and FATCA regulations. They must disclose all foreign accounts and assets to the IRS. Errors or omissions can lead to penalties that can reach up to 50% of the account balance per violation.
Our IRS-compliant tax planning and return preparation services ensure complete FATCA and FBAR support. We help CPA firms maintain accuracy while minimizing risk.
Valuation Challenges
Different countries follow different valuation methods. Not following them properly can affect taxable income and invite penalties. Through outsourced accounting, we help firms reconcile offshore transactions accurately while keeping local accounting practices aligned with U.S. tax standards.
Operational Issues
Cross-border operations often lead to communication gaps. We use automated tools to keep your U.S. and offshore teams on the same page at all times.
Data Security
Global companies are at an increased risk of data theft. To stay safe, it is important to follow strong security protocols and encrypted systems.
How to Prepare Yourself for the 2026 Tax Landscape
Conduct a Thorough 2025 Wealth Audit
Before stepping into 2026, make sure to review your client’s wealth portfolio. Carefully check all the investments, trusts as well as offshore holdings.
Strengthen Global Coordination
- Identify the changing capital gains and wealth tax thresholds and how they impact you.
- Review the revised rules for all filing types (1040, 1065, 1120, and 1041).
- Adjust structures to reduce taxable income
- Prepare for new reporting mandates.
For HNWIs, it is important to coordinate between onshore and offshore assets.
- Use cloud-based platforms for secure, real-time collaboration.
- Standardize document control and communication workflows.
- Integrate multi-state and cross-border systems to ensure complete alignment with IRS standards.
Partner with Specialized Outsourcing Experts
Work with a trusted tax support partner to maintain both quality and compliance.
Experienced teams can expertly handle your global tax obligations without increasing your overhead costs.
Prioritize Tax Planning
- Apply tax-loss harvesting, charitable gifting, or trust optimization strategies to save money.
- Use financial forecasting and modeling services to forecast potential 2026 outcomes.
A proactive, data-driven approach helps firms offer smarter advice and strengthen their client relationships.
Partner with KnowVisory Global to Manage Global HNW Portfolios with Ease
With over 15 years of experience in IRS-compliant tax preparation, multi-state filings, and offshore bookkeeping, we help accounting firms simplify complex reporting requirements. Our experts understand cross-border taxation inside out. They can help you eliminate operational bottlenecks and stay fully prepared for the changing 2026 tax landscape. They bring automation and structure to their workflow. Using AI-powered tax systems and secure cloud platforms, we help HNWIs achieve:
- 40-50% reduction in errors
- 40% faster turnaround times
- Improved transparency and client confidence
The Time to Build a Future-Ready HNW Advisory Model is Now!
As we inch closer to 2026, the countdown to the TCJA sunset has officially begun. This window offers CPAs and HNW individuals a rare opportunity to:
- lock in today’s exemptions
- restructure global portfolios
- mitigate rising tax exposure
- strengthen compliance before enforcement intensifies
The firms that stay ahead will create a significant advantage for their clients.
So, act now to reduce tax errors, stay IRS compliant, and deliver unmatched value to your high-net-worth clients.
