Key Takeaways
- Congressional committee OKs bipartisan crypto tax bill.
- Film tax credit picks up steam.
- Tax gap disappears from data.
- Taxpayer data at risk, IRS watchdog says.
- National Cheeseburger Day.
In Congress
House Panel Moves Crypto Tax Measure With Bipartisan Support - Chris Cioffi, Bloomberg Tax ($):
Though the crypto tax legislation is unlikely to get a full House vote until after the midterms, advancing the bill out of committee now shows the committee’s focus on getting it done on a bipartisan basis this Congress. The measure, sponsored by committee Chair Jason Smith (R-Mo.), is cosponsored by several other members of the tax-writing panel, including Rep. Steven Horsford (D-Nev.).
Horsford praised the bill, saying it represents progress on many issues but isn’t the final word on crypto and taxation.
“The package establishes rules in several areas, while leaving other questions for further consideration,” Horsford said during the markup Wednesday. “Today’s vote does not end that work.”
Horsford praised the bill, saying it represents progress on many issues but isn’t the final word on crypto and taxation.
“The package establishes rules in several areas, while leaving other questions for further consideration,” Horsford said during the markup Wednesday. “Today’s vote does not end that work.”
Film Credit Caucus Gets Positive Early Buzz - Jared Serre, Tax Notes ($):
“We only announced this about two hours ago, and I’ve already had members come up and say they want to be in the caucus,” Rep. Laura Friedman, D-Calif., told Tax Notes late September 16. Among the interested are lawmakers that have filming production in their states or want to have it in their states, she said, adding, “We’re having a good response.”
Friedman, a former film producer elected to Congress in 2024 to represent the Los Angeles-area city of Burbank, joined with five other lawmakers to form the initial caucus. The bipartisan effort is focused on strengthening and expanding film production across the country, according to a release.
Friedman, a former film producer elected to Congress in 2024 to represent the Los Angeles-area city of Burbank, joined with five other lawmakers to form the initial caucus. The bipartisan effort is focused on strengthening and expanding film production across the country, according to a release.
Is There Any Hope for the ACA Premium Tax Credits? - Kelsey Brooks, Tax Notes ($):
More than six months after the Affordable Care Act premium enhanced tax credits expired, congressional lawmakers are no closer to advancing legislative efforts to reintroduce the popular subsidies as the 2026 midterm elections near.
The healthcare tax credits were established in the American Rescue Plan Act of 2021 and extended through December 31, 2025, by the Inflation Reduction Act. Democratic efforts to extend the premium enhanced tax credits into 2026 led in part to a 43-day federal government shutdown that ended November 12, 2025, with the passage of an appropriations bill that didn’t include a provision for the ACA subsidies.
The healthcare tax credits were established in the American Rescue Plan Act of 2021 and extended through December 31, 2025, by the Inflation Reduction Act. Democratic efforts to extend the premium enhanced tax credits into 2026 led in part to a 43-day federal government shutdown that ended November 12, 2025, with the passage of an appropriations bill that didn’t include a provision for the ACA subsidies.
ESOPs
New ESOP Law Poised to Curb Litigation, Spark Ownership Boon - Brett Samuels, Bloomberg Tax:
Once signed into law by President Donald Trump, ESOP fiduciaries and trustees will be able to rely on independent expert appraisers who use the IRS rule to determine fair market value. In the absence of concrete guidance, attorneys and advocacy groups said, companies were reluctant to pursue employee ownership out of fear of litigation and second-guessing following initial valuations or annual valuations of company stock.
The legislation is expected to provide long-awaited legal clarity for ESOP transactions — reducing costly litigation, drawing insurers back into the market, and potentially unleashing a wave of new ESOPs that advocates say has been suppressed for decades by regulatory uncertainty.
“What Congress is doing is looking at the state of class action litigation and saying we need to do something with the adequate consideration standard, because it’s become a disincentive for folks to create ESOPs,” said Andrew Salek-Raham, a principal at Groom Law Group.
The legislation is expected to provide long-awaited legal clarity for ESOP transactions — reducing costly litigation, drawing insurers back into the market, and potentially unleashing a wave of new ESOPs that advocates say has been suppressed for decades by regulatory uncertainty.
“What Congress is doing is looking at the state of class action litigation and saying we need to do something with the adequate consideration standard, because it’s become a disincentive for folks to create ESOPs,” said Andrew Salek-Raham, a principal at Groom Law Group.
At the IRS
Billions in Taxes Go Unpaid. Under Trump, the I.R.S. Won’t Say How Much. - Andrew Duehren, The New York Times ($):
“Without a metric of the tax gap that is telling us in real time about trends in compliance and how they’re changing, I worry that it’s hard for policymakers to see the full swath of the damage that’s been done by the gutting of the agency,” said Natasha Sarin, a Treasury official during the Biden administration who has written extensively about the tax gap. “And, in fact, I worry that’s the point.”
Beyond illustrating the extent and sources of tax noncompliance, the tax gap has also been a figure often cited to argue for giving more resources to the I.R.S. In 2021, Charles P. Rettig, Mr. Trump’s first-term pick to lead the I.R.S., speculated that the tax gap could be as much as $1 trillion a year, a figure much larger than the I.R.S. estimate at the time, as he called for a bigger budget for the agency.
Beyond illustrating the extent and sources of tax noncompliance, the tax gap has also been a figure often cited to argue for giving more resources to the I.R.S. In 2021, Charles P. Rettig, Mr. Trump’s first-term pick to lead the I.R.S., speculated that the tax gap could be as much as $1 trillion a year, a figure much larger than the I.R.S. estimate at the time, as he called for a bigger budget for the agency.
IRS tax debt agreements have plummeted: 'I've never seen a number that low,' taxpayer advocate says - Greg Iacurci, CNBC:
The Internal Revenue Service has been accepting far fewer deals from taxpayers trying to dig themselves out of tax debts, federal data shows.
The IRS accepted about 5,500 “offers in compromise” during the 2025 fiscal year — a 57% decline from 2023, when the agency accepted about 12,700 offers, according to agency data.
The IRS offer in compromise program allows taxpayers to settle their tax debts for less than the full amount owed. On IRS.gov, the agency describes it as a “legitimate” option for those who can’t pay their debt or who would suffer financial hardship doing so.
The IRS accepted about 5,500 “offers in compromise” during the 2025 fiscal year — a 57% decline from 2023, when the agency accepted about 12,700 offers, according to agency data.
The IRS offer in compromise program allows taxpayers to settle their tax debts for less than the full amount owed. On IRS.gov, the agency describes it as a “legitimate” option for those who can’t pay their debt or who would suffer financial hardship doing so.
Watchdog: IRS Risks Taxpayer Data Without Cybersecurity Changes - Erin Slowey, Bloomberg Tax ($):
The IRS needs to take steps to improve its cybersecurity program so it doesn’t put taxpayer data at risk, the agency’s watchdog said Friday.
The Treasury Inspector General for Tax Administration found in a report that the IRS’s cybersecurity program wasn’t effective because some of its functions weren’t at advanced levels.
The report said 86% of the sampled information systems had critical vulnerabilities not remediated within 30 days, as required.
TIGTA is required as part of the Federal Information Security Modernization Act of 2014 to conduct an annual review of the IRS’s security programs.
The Treasury Inspector General for Tax Administration found in a report that the IRS’s cybersecurity program wasn’t effective because some of its functions weren’t at advanced levels.
The report said 86% of the sampled information systems had critical vulnerabilities not remediated within 30 days, as required.
TIGTA is required as part of the Federal Information Security Modernization Act of 2014 to conduct an annual review of the IRS’s security programs.
Conservation Easement Lawyers Find Hope Beyond Court Losses - David Schultz, Bloomberg Tax ($):
The dispute at the center of many of these cases is how taxpayers should value the land they’re donating.
The IRS argues that taxpayers should only look at sales of comparable properties when valuing their land, not at what the land could be used for if its economic value were maximized, Bradford said. But there hasn’t yet been an opinion fully endorsing the IRS’s viewpoint from the Eleventh Circuit, which is hearing a large number of these cases because many conservation easements are located in the deep South, she said.
“While the opinions have largely affirmed the Tax Court, they haven’t actually said anything that’s in an overarching way bad for taxpayers,” she said.
The IRS argues that taxpayers should only look at sales of comparable properties when valuing their land, not at what the land could be used for if its economic value were maximized, Bradford said. But there hasn’t yet been an opinion fully endorsing the IRS’s viewpoint from the Eleventh Circuit, which is hearing a large number of these cases because many conservation easements are located in the deep South, she said.
“While the opinions have largely affirmed the Tax Court, they haven’t actually said anything that’s in an overarching way bad for taxpayers,” she said.
Trade
Axle of Dearborn and the Death of De Minimis - Nana Ama Sarfo, Tax Notes ($):
In February the U.S. Supreme Court held in a much-anticipated ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the president emergency powers to impose tariffs (Learning Resources Inc. v. Trump, 146 S. Ct. 628 (2026)). However, it left one closely related question unanswered: Can the president use IEEPA to suspend a statutory tariff exemption? More specifically, is the president entitled under IEEPA to suspend the statutory de minimis exemption for low-value imports under section 321 of the Tariff Act of 1930 (19 U.S.C. section 1321)?
For the U.S. Court of International Trade, the answer is yes.
In August the U.S. Court of International Trade addressed this question in Axle of Dearborn Inc. v. Department of Commerce, slip op. 26-94 (Ct. Int’l Trade Aug. 13, 2026), in which a three-judge panel held that President Trump’s IEEPA authority allows his administration to suspend duty-free treatment for low-value imports.
For the U.S. Court of International Trade, the answer is yes.
In August the U.S. Court of International Trade addressed this question in Axle of Dearborn Inc. v. Department of Commerce, slip op. 26-94 (Ct. Int’l Trade Aug. 13, 2026), in which a three-judge panel held that President Trump’s IEEPA authority allows his administration to suspend duty-free treatment for low-value imports.
Opportunity Knocks
Opportunity Zone Investors Eager for More Guidance Ahead of 2027- Erin Schilling and Shannon Najmabadi, Bloomberg Tax ($):
In February the U.S. Supreme Court held in a much-anticipated ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the president emergency powers to impose tariffs (Learning Resources Inc. v. Trump, 146 S. Ct. 628 (2026)). However, it left one closely related question unanswered: Can the president use IEEPA to suspend a statutory tariff exemption? More specifically, is the president entitled under IEEPA to suspend the statutory de minimis exemption for low-value imports under section 321 of the Tariff Act of 1930 (19 U.S.C. section 1321)?
For the U.S. Court of International Trade, the answer is yes.
In August the U.S. Court of International Trade addressed this question in Axle of Dearborn Inc. v. Department of Commerce, slip op. 26-94 (Ct. Int’l Trade Aug. 13, 2026), in which a three-judge panel held that President Trump’s IEEPA authority allows his administration to suspend duty-free treatment for low-value imports.
For the U.S. Court of International Trade, the answer is yes.
In August the U.S. Court of International Trade addressed this question in Axle of Dearborn Inc. v. Department of Commerce, slip op. 26-94 (Ct. Int’l Trade Aug. 13, 2026), in which a three-judge panel held that President Trump’s IEEPA authority allows his administration to suspend duty-free treatment for low-value imports.
Blogs & Bits
Three Facts Straightening Out the Debate Over Bonus Depreciation, The Tax Foundation blog. "Expensing for capital investment is not a special tax break."
IRS Extends Drought Tax Relief for Farmers and Ranchers, Kelly Phillips Erb, Taxgirl. "This past year has been very dry in many parts of the U.S., which has been particularly devastating for farmers and ranchers. As a result, the IRS has announced additional tax relief for those who were forced to sell or exchange livestock because of drought conditions."
New Census Data Show Importance of Refundable Tax Credits and Need for Improvements, Joe Hughes, Institute on Taxation and Economic Policy. "The new Census data show the enormous impact that refundable tax credits have on poverty – particularly child poverty."
What Day Is It?
It's National Cheeseburger Day! Not too late for an outdoor cookout to celebrate a great American meal.
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