When I was a kid, I was fascinated by space. I think most kids in my generation were. All the coolest movies, like the original Star Wars and The Right Stuff, and the campiest TV shows (think Mork and Mindy, V, and Buck Rogers in the 25th Century) were about space travel. Even MTV launched its first broadcast at 12:01 a.m. on August 1, 1981, opening with a montage that began with Columbia’s countdown and liftoff, moved to the Apollo 11 launch, and culminated in the moon landing—where an astronaut saluted an MTV flag as a voice-over declared, “Ladies and gentlemen: rock and roll.”

Astronauts were rock stars—especially for geeks like me.

That’s why I’ll admit to being a little giddy about the recent launch of Artemis II. It’s the first crewed voyage back toward the moon in more than 50 years. The April 1, 2026, mission carries four astronauts for a roughly ten day journey that orbits the moon without landing. If all goes well, it clears the path for Artemis III, which aims to land astronauts on the moon and begin a more sustained presence there.

(I’ll also admit to being a little biased: the crew includes Christina Koch, who will be the first woman to travel to the moon. She and I also both graduated from the N.C. School of Science and Mathematics in Durham, NC—shout out, uni-pride.)

It’s amazing to think about all of the things that technology can do today. Besides taking us to the moon, tech allows us to send money around the world with a click of a button. We can pay and trade in digital assets, such as cryptocurrencies. But even though digital assets are practically mainstream now, the IRS is still playing a bit of catch-up when it comes to taxing those transactions. As reporting requirements evolve—including the introduction of new forms like Form 1099-DA—the IRS is aiming to close that gap. But compliance challenges remain, driven in part by confusion, complexity, and the relatively new nature of digital asset taxation.

Technology hasn’t just changed how we spend money—it’s also changed how we work. Now, you can order food, rides, and medications directly from your phone and often have them delivered to your door in minutes. That has boosted the gig economy, changing how taxpayers earn income, turning spare hours into revenue streams. Unlike traditional employees, gig workers typically don’t have taxes withheld from their paychecks, so they’re responsible for tracking their income, reporting it accurately, and paying any taxes owed. That can get complicated quickly. With more moving pieces, good record keeping and a clear understanding of the rules are essential to avoid mistakes and make sure nothing is left on the table.

Among the most dramatic technological advances is how quickly the world is moving toward incorporating artificial intelligence (AI) into nearly every aspect of our lives—from global trade (where companies increasingly need more integrated, specialized systems that can connect tax, legal, and operational data in real time) to individual tax advice.

And while technology can make our lives easier, it can make life easier for scammers, too. The IRS is warning that confusion around new deductions and credits under the One Big Beautiful Bill Act (OBBBA) has created opportunities for bad actors, particularly as filing season enters its final stretch. As with past filing seasons, the most common schemes rely on promising unusually large refunds or claiming eligibility for benefits that don’t apply. And now, thanks to social media, taxpayers can get tax advice—including bad advice—in seconds. Taxpayers should be especially cautious about advice that sounds too good to be true, particularly when it comes from social media rather than a qualified tax professional.

And while I’m a big believer in technology (I say that as I type this on my laptop, listening to the Phillies game over the internet, and sipping from a mug that keeps my coffee at exactly 136 degrees), there are still some jobs best done by humans.

Just look at the staffing changes we’re seeing in many government agencies. You likely already know that IRS staffing is down by 27%, leading to processing delays, but similar changes are happening at other agencies—such as the Social Security Administration.

You may recall that my dad died unexpectedly late last year. It’s been a big change for my mom, including sorting out her finances. We thought that some things, like switching over her Social Security benefits, would be easy. We were wrong. It took months to sort out—along the way, we endured long waits on the phone, got bad information, and were sent plenty of confusing notices. Eventually, we reached out to our Congressional representative for assistance—not once, but twice.

For many beneficiaries like my mom, the biggest frustration isn’t just the delay, it’s the absence of a real person to help resolve it. Even when the issue is urgent, the process often relies on automated systems, online accounts, or long waits for callbacks that may or may not come. For older Americans in particular, or those navigating the system during stressful moments like the loss of a spouse, that lack of human contact can turn what should be a straightforward process into something far more difficult.

Does this mean I want to give up my robot vacuum or go back to manually starting the dishwasher like a dinosaur? No way. But I do hope that, as we move toward more technology, we don’t forget that, for all that humans aren’t perfect, they have something that automated systems haven’t yet perfected—empathy.

Kelly Phillips Erb (Senior Writer, Tax)

This is a published version of the Tax Breaks newsletter, you can sign-up to get Tax Breaks in your inbox here.

This week, a reader asks:

Is there an avenue that you are aware of that would allow someone who has not filed a tax return in over six years to claim refunds that were due over that entire time frame?

Short answer: No, the law is pretty unforgiving here. Refunds are subject to a strict statute of limitations. The rule is three years from the time the return was filed, or two years from the time the tax was paid, whichever is later.

If no return was filed, the IRS treats it as if it were filed on the original due date for purposes of the three-year rule. So, in practice, you still end up with that three-year lookback from the due date to claim a refund. That’s why late filers don’t get to “restart the clock” by filing years later—the window has already closed.

If you haven’t filed in over six years, filing now will typically only produce refunds for the most recent three years. Anything older is forfeited. There are a few narrow, technical exceptions (like certain carrybacks and worthless securities), but nothing that would typically apply six years of missed refunds.

And while it may seem unfair, the IRS doesn’t face the same restrictions. The agency can pursue taxpayers for unfiled years indefinitely since the statute of limitations only starts to run after a tax return is filed.

Statistics, Charts, and Graphs

E-filing continues to be the most common filing method this season by a wide margin, according to the most recent IRS filing statistics.

Tax professionals still handle the larger share of e-filed returns—about 45.9 million so far—but that number is down 1.1% compared to last year.

However, DIY filing is inching up. Self-prepared returns have increased by 1.4% to just over 41 million, as more taxpayers lean on software to handle straightforward returns. The gap between the two groups isn’t huge, which suggests that many filers are comfortable going it alone—at least when their tax situation is relatively simple.

Is one better than the other? It depends on who you are. Once you add in business income, multiple sources of revenue, or more complicated deductions, the stakes get higher—and that’s where tax pros continue to earn their keep.

Taxes From A To Z: M is for Mortgage Interest Deduction

The mortgage interest deduction allows eligible homeowners to deduct interest paid on a qualified home loan from their taxable income, potentially reducing the tax owed. It is only available if you itemize deductions on Schedule A. And the deduction only applies to loans used to buy, build, or substantially improve the home that secures the loan. Interest on debt used for personal expenses (such as refinancing simply to get equity to pay off student loan or credit card debt) does not qualify.

For most mortgages taken out after December 15, 2017, the deduction is limited to interest on up to $750,000 of qualified mortgage debt ($375,000 if married filing separately). However, earlier loans are generally grandfathered under prior law, allowing interest to be deducted on up to $1 million of debt—$500,000 if married filing separately—subject to certain limits.

You’re a qualifying homeowner if you are legally liable for the mortgage debt and have an ownership interest in the home securing the loan. You don’t have to be the sole owner, but you must be obligated to pay the loan and actually make the payments to claim the deduction. The home must also be a qualified residence, typically your primary home or a second home.

Simply making payments on someone else’s mortgage without being legally obligated on the loan generally does not qualify you for the deduction. But co-owners may each deduct the portion of interest they actually pay, provided they meet the ownership and liability requirements.

In the Star Wars movies, who was responsible for creating the murder tax?

(B) Emperor Palpadine

(C) Grand Moff Tarkin

Find the answer at the bottom of this newsletter.

Positions And Guidance

The IRS issued Notice 2026-20, which offers temporary relief through December 31, 2026, for taxpayers who hold crypto or other digital assets with brokers. The underlying rule requires taxpayers to specifically identify which units they’re selling, typically by telling the broker at the time of the transaction. But because many brokers still don’t have systems in place to handle those instructions, the IRS is allowing taxpayers to use their own books and records to make that identification instead—for now. If no identification is made, the default rule is first in, first out (FIFO).

The American Bar Association Section of Taxation submitted comments to Treasury and the IRS on recently issued interim guidance explaining how taxpayers should determine whether they’ve received disqualifying “material assistance” from certain foreign entities under new rules tied to energy tax credits. The notice addresses some immediate questions, provides temporary safe harbors, and invites public input on how to apply and improve the rules—particularly around avoiding loopholes and calculating costs.

The IRS announced that more than four million children have been enrolled in Trump Accounts to date, including over one million who have elected the $1,000 pilot program contribution, limited to eligible children born between 2025 and 2028. The accounts, created under OBBBA, allow parents and others to establish tax-advantaged accounts for minors under age 18 with valid Social Security numbers, with contributions beginning in July 2026 and subject to annual limits. Taxpayers can opt in by submitting Form 4547 with their 2025 tax return.

That’s the revenue generated by the global satellite industry alone in 2024, with most coming from the commercial satellite sector. As we explore more of the final frontier (imagine William Shatner as Captain James T. Kirk reading the rest of this to you), there are questions about who owns space, and objects in space. And as commercial activity in space increases, that makes existing tax rules, which are built around geography and national borders, complicated.

The main challenge is that outer space, under the 1967 Outer Space Treaty (yes, this is a real treaty), isn’t subject to any country’s sovereignty, which makes it difficult to determine where income is earned and who has the right to tax it.

In practice, countries still largely rely on taxing their own residents. And since traditional “source” rules don’t translate well into space, some proposals suggest tying taxing rights to the country where a spacecraft is registered, similar to how ships are taxed by the flag state. But broader questions remain unresolved, including how to handle different types of space activity, how to avoid regulatory gaps, and whether entirely new frameworks will be needed as space commerce expands beyond Earth’s orbit.

In the original Star Wars trilogy, Jabba the Hutt imposes a “murder tax,” a penalty that required criminals to pay a fee for killings committed on the planet. It served as a revenue raiser, allowing Jabba to profit from the high violence in his territory, while controlling the criminal activity.

It’s also a reminder that outside of social norms, tax can devolve into coercion, making even the IRS look positively tame by comparison.

(If you want to read more about the tax angles in Star Wars, you can check out this previous edition of “Taxgirl Goes to the Movies.”)

The links, clips, and tax takes readers loved (and a few you may have missed):

They’re Coming For Your Social Security

Court Strikes Down New Treasury Residential Real Estate Reporting Rule

You can find last week’s newsletter here.

📅 April 15, 2026. Deadline for individual tax returns to be filed with the IRS (or to request an extension).

Tax Conferences And Events

📅 May 7-9, 2026. American Bar Association Section of Taxation May Tax Meeting. Marriott Marquis, Washington, DC.

📅 June 3-6, 2026. Tax Retreat—The Anticonference. San Antonio, Texas.

📅 June 8-11, 2026. AICPA Engage. ARIA Resort & Casino, Las Vegas & live online.

We’d love your thoughts. What’s helpful? What’s confusing? What tax topics do you want more of? Email me directly—I read every message.

If you have a tax question, conference or tip for me, check out our guidelines and submit it here.

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