Key Takeaways
- Corporate AMT guidance pushback.
- Supreme Court review of Trump tariffs.
- IRS crackdown on tax shelters halted.
- IRS data sharing.
- "Revenge Tax".
- Complexity of the OBBBA.
- OBBBA effects on Child Tax Credit.
- National Swap Ideas Day!
Tariffs
Trump tariffs face high-stakes Supreme Court review - Alex Simendinger and Kristina Karisch, The Hill:
The Supreme Court on Tuesday agreed to examine the legal underpinnings of the president’s use of emergency authority to impose steep tariffs on goods from dozens of trading partners.
...
The Supreme Court’s conservative majority has granted numerous of Trump’s emergency requests this year, but the tariffs case will be the first time in which justices will weigh the arguments and legal underpinnings of a key administration priority — one that affects hundreds of millions of people globally.
...
The Supreme Court’s conservative majority has granted numerous of Trump’s emergency requests this year, but the tariffs case will be the first time in which justices will weigh the arguments and legal underpinnings of a key administration priority — one that affects hundreds of millions of people globally.
Justices Grant Fast-Track Review For Trump Tariff Suit - Dylan Moroses, Law 360 Tax Authority ($):
The U.S. Supreme Court will fast-track its consideration of the government's appeal of a Federal Circuit ruling that President Donald Trump's tariffs under the International Emergency Economic Powers Act are unlawful, according to a Tuesday order.
With the high court okaying Trump's request for a speedy review, the government now has until Sept. 19 to file its opening brief in the case, while the states, small businesses and Illinois toymakers that challenged the tariffs will have until Oct. 20 to file their responses.
With the high court okaying Trump's request for a speedy review, the government now has until Sept. 19 to file its opening brief in the case, while the states, small businesses and Illinois toymakers that challenged the tariffs will have until Oct. 20 to file their responses.
Corporate AMT
Trump administration loosens corporate taxes after pulling out of global deal - Tobias Burns, The Hill:
The administration is now working to make minimum taxes more favorable to corporations through the regulatory process after leaving Democrats’ minimum tax largely in place in their One Big Beautiful Bill Act, potentially further eroding the already weakened global tax accord.
...
Democrats blasted the new regulations in a letter to Treasury Secretary Scott Bessent on Monday. After the unexpected departure of new IRS Commissioner Billy Long, whom the Senate confirmed, Bessent is serving as acting head of the agency. They accused Trump’s IRS of either postponing or abandoning the corporate alternative minimum taxes (CAMT) that enable the international corporate tax arrangement to remain nominally in place.
...
Democrats blasted the new regulations in a letter to Treasury Secretary Scott Bessent on Monday. After the unexpected departure of new IRS Commissioner Billy Long, whom the Senate confirmed, Bessent is serving as acting head of the agency. They accused Trump’s IRS of either postponing or abandoning the corporate alternative minimum taxes (CAMT) that enable the international corporate tax arrangement to remain nominally in place.
Lawmakers Push Treasury to Rescind Corporate AMT Guidance - Cady Stanton, Tax Notes ($):
A group of six House and Senate lawmakers are pushing for Treasury to rescind recent interim guidance notices on the corporate alternative minimum tax, arguing that the notices usurp the guidance issued under the Biden administration.
...
The lawmakers further requested that Treasury answer questions related to the corporate AMT, including the number of corporations affected by the new safe harbor threshold, how many corporations it projects will use the new calculation methods, what external input — including contact with corporate representatives — Treasury and the IRS received to support drafting the notices, and when Treasury and the IRS expect to release the new proposed and final corporate AMT rule.
...
The lawmakers further requested that Treasury answer questions related to the corporate AMT, including the number of corporations affected by the new safe harbor threshold, how many corporations it projects will use the new calculation methods, what external input — including contact with corporate representatives — Treasury and the IRS received to support drafting the notices, and when Treasury and the IRS expect to release the new proposed and final corporate AMT rule.
Tax Shelters
Trump Administration Halts I.R.S. Crackdown on Major Tax Shelters - Jesse Drucker, New York Times:
In April, the I.R.S. said it would rescind Biden administration rules that had required companies using such tax strategies to report them to the agency, a change making it more difficult for auditors to find the transactions. The agency also eased a pair of rules that target abusive shelters, including one that imposes penalties on wealthy Americans who used an insurance tax scheme that multiple courts have tossed out.
In late July, 20 House Republicans asked the I.R.S. to withdraw yet another line of attack on the transactions, one providing guidance to auditors on how to analyze the tax shelter deals.
In late July, 20 House Republicans asked the I.R.S. to withdraw yet another line of attack on the transactions, one providing guidance to auditors on how to analyze the tax shelter deals.
IRS Ordered To Notify Court Of ICE Info-Sharing Requests - Anna Scott Farrell, Law 360 Tax Authority ($):
U.S. District Judge Colleen Kollar-Kotelly said Friday the Internal Revenue Service must give the notice if it receives an information request from the U.S. Department of Homeland Security's Immigration and Customs Enforcement or if the tax agency makes plans to share information with ICE.
She additionally ordered the IRS on Tuesday to produce the administrative record underlying its decisions to share information with immigration authorities, saying she needed the record to make a decision on whether to issue a preliminary injunction that would stop the agency from sharing taxpayer data across government departments.
She additionally ordered the IRS on Tuesday to produce the administrative record underlying its decisions to share information with immigration authorities, saying she needed the record to make a decision on whether to issue a preliminary injunction that would stop the agency from sharing taxpayer data across government departments.
IRS Must Provide Administrative Record on Data Sharing Decision - Wesley Elmore, Tax Notes ($):
The IRS has until October 24 to provide a federal district court with the administrative record underlying its decision to share data on 47,000 taxpayers with immigration authorities.
...
The judge said the court will more fully explain its reasoning in a coming written ruling on the plaintiffs’ motion, but the plaintiffs showed a substantial likelihood that the Center for Taxpayer Rights has standing “based on the harms to its core activities” described in the declaration of the center’s executive director, Nina Olson, included in the motion.
...
The judge said the court will more fully explain its reasoning in a coming written ruling on the plaintiffs’ motion, but the plaintiffs showed a substantial likelihood that the Center for Taxpayer Rights has standing “based on the harms to its core activities” described in the declaration of the center’s executive director, Nina Olson, included in the motion.
Revenge Tax
Treasury Looks to Revive ‘Revenge Tax’ if OECD Deal Falls Short - Zach Cohen, Bloomberg Tax ($):
Treasury Department official Kenneth Kies told GOP House members the department will likely back Congress to resuscitate the so-called “revenge tax” if Europe doesn’t ultimately exempt US companies from the global minimum tax, House Ways and Means Committee Chair Jason Smith said Tuesday.
OBBBA
One Big Beautiful Bill Act Makes the Individual Income Tax More Complex - Alex Muresianu, Same Cluggish, Rebecca Walker, Tax Foundation:
The main impetus for the OBBBA was the looming expiration of the tax cuts and reforms passed in the TCJA at the end of 2025. The OBBBA makes most of those changes permanent, which is commendable. However, it does not build on the TCJA’s accomplishments in terms of simplification. Instead, with the major exception of reforms to the Inflation Reduction Act’s green energy credits, the OBBBA mainly complicates the individual tax code, introducing or expanding narrow tax breaks for different types of income or expenses.
Child Tax Credit Changes Boost And Stabilize Benefits For Some; Still Exclude Lowest-Income Families - Elaine Maag, Tax Policy Center:
These changes do little for families with low incomes, because the credit's pre-OBBBA phase-in rules remain in place. And, as under prior law, that amount grows each year with inflation. But the amount of credit a family can receive beyond taxes owed is limited to 15 percent of earnings above $2,500. A larger credit with these same phase-in rules means that more children now live in families that cannot receive the full CTC because their parents do not earn enough. TPC estimates that number jumped from about 17 million to 30 million under the new law.
...
In all, the changes to the CTC were a mixed bag for families with children. A larger, permanent, inflation-indexed credit helps many families plan with greater certainty. But, despite research suggesting that investments in children with low incomes pay off more than many other social policies, millions of children in low-income families remain excluded, along with the economic returns that come from investing in them.
...
In all, the changes to the CTC were a mixed bag for families with children. A larger, permanent, inflation-indexed credit helps many families plan with greater certainty. But, despite research suggesting that investments in children with low incomes pay off more than many other social policies, millions of children in low-income families remain excluded, along with the economic returns that come from investing in them.
Blogs and Bits
‘You Earned It, You Keep It’ bill would end all income tax on Social Security benefits - Kay Bell, Don't Mess with Taxes:
And even though the Gallego-Craig bill would address the deficit concern by offsetting the elimination of taxes on Social Security with the new wage base tax, the Republican Party generally is opposed to raising taxes. A hike on a powerful segment of their constituency — yeah, I’m talking about the rich — probably wouldn’t be embraced by those members.
Still, it’s Congress, where the saying “you never know” is the legislative branch’s unofficial motto.
Still, it’s Congress, where the saying “you never know” is the legislative branch’s unofficial motto.
Ready For Some Football? When It Comes To Gambling, Odds Are The IRS Is Watching, Too - Kelly Phillips Erb, Forbes:
If you don’t think that IRS-CI and other law enforcement are watching out for illegal sports betting, think again. Each year, IRS-CI initiates over 30 illegal gambling cases, earning a 92% conviction rate for prosecuted cases. Over the past five fiscal years, 96 defendants have been convicted of crimes tied to illegal gambling, receiving prison sentences averaging between five and 33 months in federal prison.
...
The overall total tax impact of sports betting revenue is huge. In 2024, it was pegged at $52.7 billion. With those dollars at stake, it’s important to follow tax laws. IRS-CI also encourages taxpayers to report all gambling winnings as taxable income to prevent civil and criminal penalties from the IRS.
...
The overall total tax impact of sports betting revenue is huge. In 2024, it was pegged at $52.7 billion. With those dollars at stake, it’s important to follow tax laws. IRS-CI also encourages taxpayers to report all gambling winnings as taxable income to prevent civil and criminal penalties from the IRS.
Tax Trouble
IRS assesses $162 million in penalties over false tax credit claims tied to social media - IRS:
The Internal Revenue Service is alerting taxpayers about a growing number of fraudulent tax schemes circulating on social media that promote the misuse of credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. These scams have led thousands of taxpayers to file inaccurate or frivolous returns, often resulting in the denial of refunds and steep penalties.
Since 2022, the IRS has seen a surge in questionable refund claims fueled by misleading social media posts and bad actors posing as tax experts. Many of the posts falsely claim that all taxpayers are eligible for credits they do not actually qualify for, such as those meant for self-employed individuals or businesses. The IRS routinely publishes and updates a list of frivolous positions on IRS.gov that could lead to the imposition of penalties.
Since 2022, the IRS has seen a surge in questionable refund claims fueled by misleading social media posts and bad actors posing as tax experts. Many of the posts falsely claim that all taxpayers are eligible for credits they do not actually qualify for, such as those meant for self-employed individuals or businesses. The IRS routinely publishes and updates a list of frivolous positions on IRS.gov that could lead to the imposition of penalties.
What day is it?
It's National Swap Ideas Day!
We're Here to Help
From business growth to compliance and digital optimization, Eide Bailly is here to help you thrive and embrace opportunity.
Speak to our specialists