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Tax News & Views Tax Legislation with Oreos Roundup

By Trina Pinneau
March 6, 2025
Bing Copilot DALL-E 3 image of a slice of white chocolate cheesecake garnished with an Oreo-style cookie

Key Takeaways

  • Trump Speech
  • Tax Legislation
  • IRS Firings
  • Energy Tax Credits
  • Debt Ceiling
  • Tariffs
  • Previously Taxed Income
  • In the Courts
  • Dentists and Oreos

Trump Speech

White House Official Explains Trump’s ‘100 Percent Expensing’ – Alexander Rifaat, Tax Notes ($):

President Trump meant to call for 100 percent bonus depreciation when discussing a return to “100 percent expensing” during a speech to Congress, a White House official has told Tax Notes.

The official, speaking on the condition of anonymity, said Trump’s allusion to cutting taxes on “domestic production and all manufacturing” in his March 4 address to a joint session of Congress was an indication he was referring to bonus depreciation on property rather than expensing on investments in areas such as research and development.

Tax Legislation

Smith Sets Memorial Day Deadline, Airs Additions for Tax Bill – Doug Sword, Tax Notes ($):

The House’s top taxwriter wants to get a tax bill to President Trump’s desk by Memorial Day that will include tax relief for seniors unrelated to Social Security.

House Ways and Means Committee Chair Jason Smith, R-Mo., asserted that it would be the House’s budget resolution, adopted February 25, that includes a $4.5 trillion allocation to extend the tax provisions of the Tax Cuts and Jobs Act that would take the congressional lead. Smith dismissed the chances of the Senate’s adopted $342 billion resolution on border security and defense gaining traction in the House.

Smith wants tax bill on Trump's desk by Memorial Day – Benjamin Guggenheim, Politico. “House Ways and Means Chair Jason Smith said Wednesday that House Republicans are aiming to deliver a party-line budget bill with tax cuts to President Donald Trump’s desk by Memorial Day.”

Thune: Senate GOP isn’t unified yet on tactic to get around cost of tax cut extensions – Jordain Carney, Politico:

Top Senate Republicans are talking about using a controversial accounting tactic to extend President Donald Trump’s 2017 tax cuts — but they don’t yet have enough support within their own conference for the move.

Senate Majority Leader John Thune (R-S.D.) said in a brief interview that it remained to be seen if Republicans will use what’s known as a current policy baseline to extend Trump’s tax cuts permanently. The gambit would make it appear as if the extension costs nothing, letting Senate Republicans sidestep a politically tough conversation about how to pay for them.

IRS Firings

Slashing IRS Staff Leaves Opening for Tax Cheats, Slow Returns – Michael Rapoport, Erin Schilling, and Lauren Vella, Bloomberg ($):

Cutting IRS staffing in half over the next 10 months would mean less help and longer waits for many US taxpayers and increase the risk that wealthy tax cheats escape paying what they owe.

It also would leave the Internal Revenue Service with its smallest workforce since at least the 1960s, according to official IRS data.

House Dems Warn IRS Cuts May Slow Refunds, Hurt Service – Asha Glover, Law360 ($):

The Internal Revenue Service's decision to lay off 7,000 probationary employees could threaten the agency's ability to timely serve taxpayers and issue refunds, more than 130 House Democrats said in a letter Wednesday.



The group also asked whether the agency has conducted any analysis to assess the potential revenue loss reduced enforcement could cause and what steps the agency will take to ensure that IRS staffing levels are sufficient to provide reliable customer service.

Democrats Probe IRS on Impact of Firings – Benjamin Valdez, Tax Notes ($). “More than 130 Democrats are urging acting IRS Commissioner Melanie Krause to explain how the recent terminations of thousands of employees will affect compliance work and taxpayer services.”

Energy Tax Credits

Utility operators go to bat for IRA tax credits – Nico Portuondo, E&E News by Politico:

Representatives for prominent utilities defended several of the Inflation Reduction Act’s renewable energy tax credits and their effects on reliability during a House hearing Wednesday, even as Republicans eye repealing those subsidies.

The House Energy and Commerce hearing on artificial intelligence power was intended, at least partially, as a forum for Republicans to make their case why the country needs more “baseload” energy — which primarily means coal, natural gas and nuclear generation — to meet a projected surge in demand from power-hungry AI data centers.

Companies swarm Capitol Hill to save energy tax credits – Kelsey Brugger, E&E Daily:

A company that sucks carbon out of the air and a prominent beermaker are part of a lobbying push on Capitol Hill this week urging lawmakers to save hundreds of billions of dollars’ worth of tax credits to promote renewable energy and address climate change.

Led by the nonprofit group Ceres, the advocacy push comes as House tax writers prepare to hash out exactly how Republicans will pay to extend the expiring 2017 tax cuts — a major part of President Donald Trump’s campaign promise.

Debt Ceiling

Key House Republican Warns May Debt-Ceiling Breach Possible – Erik Wasson, Bloomberg ($):

A key House Republican projected Wednesday that the US could hit the debt ceiling as soon as mid-May, several months sooner than most analysts project.

The market-rattling date hinges largely on tax revenue — and, if the US collects less than expected this tax season, the borrowing limit could be just over two months away, said Representative Jason Smith, the chairman of the House’s tax-writing committee.

Tariffs

Trump Delays Mexico, Canada Tariffs on Autos for A Month – Dylan Moroses, Law360 ($). “President Donald Trump announced Wednesday that auto vehicles and parts imported from Canada and Mexico will get a one-month reprieve from the 25% tariffs he instituted earlier this week, according to a statement read by White House Press Secretary Karoline Leavitt.”

DOGE

Republicans Warn Musk DOGE Cuts at Risk Without Congress – Billy House, Emily Birnbaum, and Erik Wasson, Bloomberg ($):

The differences between Elon Musk’s fast-acting efforts to reshape the federal government and congressional Republicans’ desire for process and professional courtesies played out behind closed doors in the US Capitol, the latest sign of brewing tension among factions of President Donald Trump’s allies.

In a series of meetings Wednesday with Musk, House and Senate Republicans sought to impress upon the billionaire that Congress has a central role in enacting controversial spending cuts that don’t run the risk of being overturned in court.

Previously Taxed Income

IRS Previously Taxed Income Rules Called Too Complex, Flawed – James Munson, Bloomberg ($):

Major business groups and tax lawyers said an IRS overhaul of rules for previously taxed earnings and profits, or PTEP, is needlessly complex, will trigger double taxation, and go beyond statutory limits.

The Alliance for Competitive Taxation, the US Chamber of Commerce, and the Tax Executives Institute called on the IRS to make changes to proposed PTEP regulations in submissions made under a public consultation.

In the Courts

U.S. Asks for Argument Time in Catholic Charities Tax Case – Christoper Jardine, Tax Notes ($). “The United States has asked the Supreme Court to let it participate in oral arguments in a case challenging Wisconsin’s denial of an unemployment insurance tax exemption to a Catholic charity.”

NY Estate's Bid to Deduct $7M Settlement Denied By 2nd Circ. – Kat Lucero, Law 360 ($). “A New York estate's $6.5 million settlement liability cannot be deducted because the liability does not decrease the value of trust assets within the estate, nor can it be classified as a tax-deductible administrative expense from the gross estate, the Second Circuit ruled.”

Ex-Girlfriend Of $36M Crypto Schemer Admits Hiding Profits – Anna Scott Farrell, Law360 ($). “The ex-girlfriend of a cryptocurrency founder who evaded taxes on a $36 million hacking scheme admitted to hiding profits from the IRS and participating in the ploy by heading shell companies and paying Los Angeles sheriff's deputies to target his enemies, according to the U.S. Department of Justice.”

Claimed Church Leader Ruled to Owe $1.3M In Taxes – Anna Scott Farrell, Law360 ($). “A claimed church leader owes $1.3 million in tax debt after he was caught selling tax avoidance schemes, a Washington federal judge ruled Wednesday, rejecting his request for more time to mount a challenge and describing him as uncooperative.”

Corporate AMT Regs Could Be Improper Delegation, Advisers Say – Chandra Wallace, Tax Notes ($). “The Supreme Court is set to hear a challenge to regulations that delegate congressional authority to a private entity, and its decision could affect implementation of the corporate alternative minimum tax.”

What Day is it?

Today is National Dentist Day. In a cruel twist of fate, it is also National Oreo Day. Make sure you brush!


About the Author(s)

Trina Pinneau photo

Trina Pinneau

Senior Manager
Trina has more than 10 years of public accounting experience providing tax consulting services and analyzing complex tax situations. She has spent the majority of her time in the credits and incentives space with a focus on energy credits and excise taxes. Trina also has experience in tax controversy and accounting methods. In joining Eide Bailly's National Tax Office Trina is focusing her efforts on energy efficiency incentives while being a resource for the excise and tax controversy team.

Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.