Key Takeaways
- Tax bill senate updates.
- Cost of proposed tax bill.
- Concerns over tax bill's effects on US deficit.
- Conservation easement valuation in the courts.
- Corporate AMT interim regs.
- World bicycle day!
Capitol agenda: New megabill text dropping this week - Lisa Kashinsky, Ben Leonard, and Maia Nehme, Politico:
Here’s the draft-text timeline POLITICO reported Monday night, though it could change:
— Armed Services plans to release its text Tuesday
— Environment and Public Works is pushing for Wednesday
— Commerce is aiming for Thursday
— Banking is expected Friday
Trump, Thune push Senate GOP on reconciliation timeline - Andrew Desiderio, Laura Weiss, John Bresnahan, Jack Sherman, and Max Cohen, Punchbowl News:
Trump’s aggressive posture underscores the White House and Senate GOP leadership’s need for speed. Trump posted Monday that he wants a bill to sign by July 4. Setting fast-approaching deadlines has been an asset for GOP leadership during the process so far, but this timeline will require warpspeed.
Trump Looks to Shore Up Support for GOP Megabill - Alex Leary, Richard Rubin, and Michael R. Gordon, Wall Street Journal:
The GOP Megabill Policies on the Senate Chopping Block - Jasmine Li, Wall Street Journal:
These include a provision to halt bans or regulations on contingency fees—used by tax professionals to pocket a percentage of the prospective tax refunds or savings they help clients obtain. The IRS has tried to crack down on these fees over the years, arguing that they motivate abuse among tax professionals. Other proposals estimated by the joint committee to have negligible fiscal impact include raising penalties for unauthorized disclosures of taxpayer information, and some tax adjustments for private foundations and nonprofit organizations.
Cost of the Tax Bill
JCT Updates Report on Revenue Effects of House Tax Bill - Tax Analysts, Tax Notes ($):
The revisions include changes made to the bill before its House passage, including the removal of the indoor tanning excise tax, the inclusion of the exception to the business meals deduction, the restoration of the taxable real estate investment trust subsidiary test, and changes to indexing alternative minimum tax thresholds.
Economists Question G.O.P. Bill: Why Increase the Deficit in Good Times? - Ben Casselman and Colby Smith, New York Times:
No one knows exactly when that will happen. But economists warn that by increasing the debt during a period of relative economic strength, the government is running the risk that the tipping point will come at the worst possible moment, when the government needs to run large deficits to respond to a war or another crisis.
Wall Street Is Sounding the Alarm on U.S. Debt. This Time, It’s Worth Listening. - Spencer Jakab, Wall Street Journal:
For perspective, federal interest this fiscal year already will be more than the defense budget and more than Medicaid, disability insurance and food stamps combined.
In the Courts
Tax Court Scrutinizes Conservation Easement Valuation and Penalties in Beaverdam Creek Holdings, LLC v. Commissioner - Ed Zollars, Current Federal Tax Developments:
IRS Regs
The simplified method provides an adjustment to a company's average adjustable financial statement income, or AFSI, thresholds over a three-year period used to assess companies' status as applicable corporations subject to the tax under Internal Revenue Code Section 55 , according to Notice 2025-27.
Blogs and Bits
Estimated taxes, summer cleaning, and other June tax moves - Kay Bell, Don't Mess with Taxes:
The June deadline for all these folks usually is June 15, but this year it’s pushed to Monday, June 16, because the 15th is on Sunday. This month’s payment is the second estimated tax amount for 2025, and is for income earned in April and May.
New Report, Same Result—High-Tax States Lose Residents, Low-Tax States Gain Them - Adam A. Millsap, Forbes:
Tax Trouble
Oconee County man indicted for failing to report $1M income on taxes - IRS (defendant name omitted):
Defendant faces a maximum penalty of three years in federal prison, a $100,000 fine and one year of supervised release to follow any term of imprisonment. U.S. District Judge Jacquelyn D Austin will preside over the case.
What day is it?
It's World Bicycle Day!