Key Takeaways
- Long Confirmed
- H.R. 1
- Energy Credits
- Digital Asset Reporting
- Tax Policy
- CTA
- IRS
- In the Courts
- Sewing Machines
Long Confirmed
Senate Confirms Billy Long to Lead I.R.S., Ignoring Troubled Tax Credit History – Andrew Duehren, New York Times:
The vote was 53-44 along party lines, with all present Democrats opposed.
The former Republican congressman will take the helm of the tax collector during a period of deep instability. Much of the agency’s work force has been laid off, fired or quit since Mr. Trump took office, and the administration is targeting it for further cuts. Mr. Long became the sixth person to lead the agency this year, after a series of acting commissioners quit or were removed.
Long to Take Over at IRS With Change, Customer Service in Mind – Cady Stanton, Tax Notes ($):
The Senate voted 53 to 44 June 12 to confirm Long to lead the IRS through the end of former IRS Commissioner Daniel Werfel’s term, which concludes in November 2027. He received similar unanimous support from Republicans in the Senate Finance Committee during a 14-13 vote June 3.
Senate Confirms Former US Rep to Take IRS Helm – Asha Glover, Law 360 ($):
The chamber voted 53-44 to confirm Long, who represented a Missouri district as a Republican in Congress from 2011 to 2023. He has worked as a business and tax adviser since leaving the House.
Incoming IRS Chief Long Faces Five Big Challenges on Day One – Erin Slowey, Bloomberg ($):
Long will enter the IRS with a hefty to-do list, as the agency comes off one of its most turbulent periods in decades. Roughly a quarter of the workforce are expected to leave by year’s end, including many top leaders. The agency also faces pressure from the White House to contribute to the Trump administration’s immigration push and carry out his agenda.
H.R. 1
Capitol agenda: Trump jumps into a GOP tax cuts conundrum – Lisa Kashinsky, Benjamin Guggenheim, and Mia McCarthy, Politico:
Trump will huddle with Senate Majority Leader John Thune and Finance Chair Mike Crapo (R-Idaho) at the White House this afternoon — the day before Senate Republican leaders want Crapo to release the bill text for the tax policy portion of the megabill. A likely discussion topic: Crapo’s pledge in a GOP conference meeting Wednesday to make three business tax cuts permanent.
Bessent Touts Full Expensing as GOP Races to Finish Tax Bill – Katie Lobosco – Tax Notes ($):
“I believe that full expensing is one of the most powerful aspects” of the Tax Cuts and Jobs Act, Bessent said June 12 at a Senate Finance Committee hearing.
The House-passed reconciliation package (H.R. 1) would restore immediate expensing for research and development and revive 100 percent bonus depreciation for items like equipment through 2029. It would also create a new provision to allow full expensing of qualifying structures in the manufacturing, extraction, or agricultural sectors for projects that break ground before the end of 2028 and are placed in service before the end of 2032.
Bessent, Senate GOP Insist TCJA Extension Won't Hike Deficit – Asha Glover, Law 360 ($):
The budget bill Republicans intend on sending to President Donald Trump's desk will not worsen the deficit, in part because the bill includes spending reductions for programs such as Medicaid, Senate Finance Committee Chairman Mike Crapo, R-Idaho, said during a hearing of his committee with Bessent.
Richest Get Income Boost in Trump Tax Bill, Poorest Lose Money – Jarrell Dillard, Bloomberg ($):
The bottom 10% of households would lose an average of about $1,600 in resources per year, amounting to a 3.9% cut in their income, according to the analysis released Thursday. Those decreases are largely attributable to cuts in the Medicaid health insurance program and food aid through the Supplemental Nutrition Assistance Program.
CBO: Lowest 30 Percent of Incomes Would Take a Hit from Megabill – Doug Sword, Tax Notes ($):
The tax portion of the reconciliation bill broadly boosts household income across all of the 10 income groups, or deciles, except for the lowest 10 percent, whose earnings are less than $21,417 in 2025, the CBO said.
Why Trump Is Pushing for a Global ‘Revenge’ Tax: QuickTake – Melissa Shin, Saim Saeed, Daniel Flatley, and Ye Xie, Bloomberg ($):
Known as Section 899, the provision would create a new provision in the US tax code that would boost taxes on the US income of non-US-based businesses and individuals. The measure has come to be called the “revenge” tax because it would increase tax rates only for countries whose tax policies the US deems “discriminatory.”
Investor Anxiety Over ‘Revenge Tax’ Is Overblown, Barclays Says – Ye Xie, Bloomberg ($):
Dubbed a “revenge tax” by the finance community, Section 899 of the budget bill calls for increasing levies for individuals and companies whose home countries’ tax policies the US deems “discriminatory.” The proposal – which received House approval in May and is now under consideration in the Senate as part of the so-called One, Big Beautiful bill — has raised concerns on Wall Street that it may drive away foreign investors at a time when their confidence in US capital markets has already been shaken by the Trump administration’s policies.
Millions of Acres of Public Land Sales Slated for Tax Bill – Ari Natter, Bloomberg ($):
As much as around 3 million acres (1.2 million hectares) of land owned by the Bureau of Land Management and the US Forest Service would be mandated for sale in the legislation. The measure, requiring each agency to sell a small percentage of the hundreds of millions of acres of land they manage in eligible states that include Alaska as well as western states, could raise as much as $10 billion over 10 years, according to a fact sheet.
Trump’s Big Bill Would Be More Regressive Than Any Major Law in Decades – Emily Badger, Alicia Parlapiona, and Margot Sanger-Katz, New York Times:
The bill as passed by the House in May would raise after-tax incomes for the highest-earning 10 percent of American households on average by 2.3 percent a year over the next decade, while lowering incomes for the poorest tenth by 3.9 percent, according to new estimates by the Congressional Budget Office.
Bessent Sees Deficit Falling Over 10 Years After Tax-Cut Bill – Cam Kettles, Bloomberg ($). “Treasury Secretary Scott Bessent said that there are a number of different assessments of the deficit impact of Republicans’ signature tax-cut bill, and that his own expectation is it will shrink borrowing over a decade.”
GOP Tax Bill Penalizes Professionals, CPA Group Says – Anna Scott Farrell, Law 360 ($). “The One Big Beautiful Bill Act passed by House Republicans penalizes accountants and other professionals and would unfairly eliminate a state and local tax deduction for certain pass-through entities, a national group of certified public accountants said Thursday.”
Energy Credits
Repeal or Not, Energy Credit Transfers Under Pressure at IRS – Lauren Loricchio & Chandra Wallace, Tax Notes ($):
Senate Republicans are mulling changes to the version of the reconciliation bill (H.R. 1) passed by the House, and the clean energy industry has been urging lawmakers to keep the transferability provisions for the duration of the advanced manufacturing production credit and other renewable energy credits.
Schumer cites ‘DEFCON 1’ scenario for fate of clean-energy tax credits – Kelsey Brugger, Politico:
…
The New York Democrat said he reached out to clean energy executives and environmental leaders months ago to strategize over protecting the Inflation Reduction Act’s clean-energy tax credits, which are overwhelmingly befitting red districts and states.
But Schumer conceded “no one” was prepared for how aggressive the House GOP would be in scaling back many of these incentives in their version of the domestic policy package central to enacting Trump’s legislative agenda.
Digital Asset Reporting
IRS Extends Transitional Relief for Digital Asset Reporting – Kristen A. Parillo, Tax Notes ($):
Notice 2025-33, 2025-27 IRB 1, released June 12, states that backup withholding obligations won’t be imposed on brokers for any digital asset sales effected during calendar year 2026. That extends by one year the transitional relief provided in Notice 2024-56, 2024-29 IRB 64.
IRS Extends Relief for Brokers on Digital-Asset Tax Withholding – Michael Rapoport, Bloomberg ($):
The transitional relief means that brokers won’t face liability or penalties for failure to pay backup withholding tax with respect to certain sales of digital assets for transactions performed between now and the end of 2026, the IRS said in a notice (Notice 2025-33). Previously the relief had extended only through 2025.
Tax Policy
Heartland Biofuel Makers Are Stuck in a Slump Awaiting US Policy – Kim Chipman, Bloomberg ($). “The White House is gearing up to finally announce its new rules on biofuel blending, critical support for the industry that’s underpinned American farming over the past two decades. But for some producers of diesel made from soybeans, the move won’t be enough to rescue them from a months-long downturn that’s led to plant closings and layoffs.”
CTA
Treasury Urges Further Freeze on Corporate Transparency Act Suit – John Woolley, Bloomberg ($):
The government’s motion sought to counter a request for summary judgment filed last month by Samantha Smith and Robert Means, who argue the CTA unconstitutionally encroaches upon state authority to regulate intrastate economic activity.
IRS
IRS tax-filing season defies gloomy projections despite DOGE upheaval – Jacob Bogage, Washington Post:
Tax revenue the IRS collected in April jumped 9.5 percent to $850 billion total, according to the Treasury Department. In May, tax revenue soared 14.7 percent over the 2024 mark, for $371 billion overall.
IRS Needs to Deliver on Modernization Promises, Faulkender Says – Tyrah Burris, Tax Notes ($). “The IRS had a successful 2025 filing season, but a key factor in making the agency more efficient and cost-effective is delivering on its promise of modernization, acting IRS Commissioner Michael Faulkender said.”
In the Courts
Tax Court Is Wrong on Penalty Authority, Second Circuit Told – Amanda Athanasiou, Tax Notes ($):
The Tax Court fundamentally misunderstands section 6201(a), the broad language of which “compels the conclusion that Congress has authorized assessments of such penalties, but also required the Treasury Secretary to make inquiries and determinations related to such penalties,” the IRS argued in its June 11 opening appellate brief in Safdieh v. Commissioner.
The Tax Court also misunderstands section 6038, which itself authorizes section 6038(b) penalty assessment, the IRS argued. “Congress need not use magic words or explicit formulations to make a penalty assessable,” it said.
Supreme Court Finds No Jurisdiction in Tax Court CDP Levy Case – Mary Katherine Browne, Tax Notes ($). “The Supreme Court narrowed the scope of an IRS “determination” to refer only to the agency’s levy decision, denying that the Tax Court had jurisdiction to hear other issues raised by a taxpayer during a hearing under the collection due process statute.”
Justices Reverse IRS Loss In Tax Collection Suit – Kat Lucero, Law 360 ($). “The U.S. Supreme Court ruled Thursday that the U.S. Tax Court did not have jurisdiction to review a New Jersey woman's collection dispute with the Internal Revenue Service after the agency stopped going after her unpaid taxes, reversing an earlier IRS loss.”
Spouse Had No Idea About Ex's Income, Tax Court Determines – Jack McLoone, Law 360 ($). “A North Carolina woman who prepared joint tax returns for her and her now-ex husband had no idea of the multiple sources of unreported income paid to her former spouse, the U.S. Tax Court ruled Thursday, granting her innocent spouse relief from his tax liability.”
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