Here’s a look at recent tax-related happenings on the Hill, including Congress passing a stopgap measure to temporarily fund the government and the House began the process to overturn Treasury regulations regarding cryptocurrency.
Lately on the Hill
Government Remains Temporarily Funded
Congress averted a government shutdown by passing another continuing resolution effective through September 30, 2025, following a reversal from Senate Minority Leader Chuck Schumer (D-NY). Schumer opined that a shutdown would be “much worse” for the country than the Republicans’ stopgap measure.1
The funding bill by and large extends fiscal 2024 spending. However, it rescinds more than $20 billion in funding for the IRS that—according to an estimate released by the Congressional Budget Office (CBO)—reduces revenues to the government by nearly $66 billion. The CBO “anticipates that rescinding those amounts would result in fewer enforcement actions by the IRS and thus in smaller revenue collections.”
The House Stifles Crypto Rules Under the Congressional Review Act
In addition to the continuing resolution, the House overturned Treasury regulations issued in the final days of the Biden administration defining decentralized cryptocurrency exchanges as brokers subject to reporting requirements. The House voted 292 to 132.
Under the Congressional Review Act, to overturn a rule, a joint resolution of disapproval must be filed within 60 calendar days2 of the rule being published in the Federal Register and received by Congress. There also is a “lookback” period that allows the 60 days to start anew in the next session of Congress. If the joint resolution of disapproval is approved by Congress and the president, then the rule cannot go into effect and cannot be reissued in substantially the same form.
The Senate had previously voted on an identical measure, passing by a 70 to 27 bipartisan vote; however, due to the Joint Committee on Taxation’s estimate that the legislation would reduce revenues, the legislation was “blue-slipped”3 by the House under constitutional requirements that revenue-related measures originate in the House. The Senate will have to vote again before sending the legislation on to the president.
Senate Adopting One Big Bill Strategy
With government funding resolved, for the time being, Congress can resume focus on tax reform. House and Senate leaders still need to reconcile their budget resolutions, which were passed under different strategies. The House resolution provides $4.5 trillion in funding for tax cuts while the Senate’s resolution omits tax policy, opting to address it with a second resolution later in the year.
It appears the Senate will take up tax policy, though, following recent comments from several Senate Finance Committee members. Sens. James Lankford (R-OK), Steve Daines (R-MT), and John Cornyn (R-TX) all agreed that the strategy is shifting to a tax-focused bill now, rather than later in the year. Lankford is pushing for a tax bill sooner rather than later so that businesses have time to plan for tax reform and the IRS has time to issue any necessary regulations before the end of the year.4
Chair Mike Crapo (R-ID) of the Senate Finance Committee also made comments on the forthcoming tax bill,5 asserting that it will need to be bigger than what the House’s budget resolution contains. Crapo provided estimates to include provisions above and beyond the extension of the Tax Cuts and Jobs Act of 2017, scored at a cost of roughly $4.5 trillion to extend.
Estimated at $500 billion, additional provisions Crapo would like to see in the bill include restoring immediate deductions for research and development expenses, bonus depreciation, and a more taxpayer-friendly calculation for deducting interest expense. Furthermore, hundreds of billions—if not several trillions—of dollars to implement President Donald Trump’s promises such as no tax on tips, overtime wages, or Social Security payments will be needed.
The Judicial Report
Maryland v. USDA, et al., No. 1:25-cv-00748-JKB
Judge James K. Bredar of the U.S. District Court for the District of Maryland granted a temporary restraining order requiring 18 federal agencies, including the U.S. Department of the Treasury, to reinstate probationary employees who were terminated after January 20, 2025. Motions to extend the order are required by March 21, 2025, and any hearing on a motion for preliminary injunction has been set for March 26, 2025.
AFGE v. OPM, 9th Cir., No. 25-1677
In another case, the U.S. Court of Appeals for the Ninth Circuit has denied the government’s motion to stay the preliminary injunction issued by the U.S. District Court for the Northern District of California. Judge William Alsup’s injunction had required six federal agencies, including the Treasury Department, to rehire employees.
From the Treasury & IRS
Trump Makes Treasury Appointments
Trump has replaced the acting IRS Chief Counsel William Paul with Andrew De Mello. Paul took over the role after Chief Counsel Marjorie Rollinson retired in January, having spent less than a year at the position. De Mello has been serving as an IRS lawyer. Prior to becoming the acting chief counsel, Paul held the position of deputy chief counsel (technical) and is expected to move back into that role.
Bloomberg Tax is reporting that Trump will be appointing Rebecca Burch as deputy secretary for international tax affairs. In this role, Burch will lead negotiations with the Organisation for Economic Co-operation and Development concerning international tax standards. Burch is an executive director of EY’s Washington Council.6
Last week, Trump’s nominee for Deputy Secretary of the Treasury Michael Faulkender passed the Senate Finance Committee on a 14 to 13 vote and IRS Commissioner nominee Billy Long began meetings with senators in preparation for his confirmation hearing.
Released Guidance
Notice 2025-17 sets forth the February 2025 corporate bond monthly yield curve and corresponding spot segment rates, the 24-month average corporate bond segment rates for March 2025, and the 30-year Treasury securities interest rates and weighted average rates.
IR-2025-31 announces that the three-year statutory period to file 2021 refund claims is coming due April 15, 2025. The IRS estimates that more than $1 billion in refunds are unclaimed, the median refund being about $781.
IR-2025-34 announces relief for individuals and businesses in West Virgina affected by severe storms, straight-line winds, flooding, landslides, and mudslides beginning on February 15, 2025. Currently, those affected who live or have businesses in Logan, McDowell, Mercer, Mingo, Wayne, and Wyoming counties qualify for relief until November 3, 2025 to file tax returns and make tax payments.
This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.
- 1“Schumer Retreats on Shutdown Threat, Enhancing Bill’s Prospects,” bloomberglaw.com, March 14, 2025.
- 2Days that either the House or Senate are not in session are not counted if the House or Senate is adjourned for more than three days.
- 3“Blue-Slipping: Enforcing the Origination Clause in the House of Representatives,” sgp.fas.org, updated October 1, 2024.
- 4“Congress Likely Will Opt for One Tax Bill, Senate Taxwriters Say,” taxnotes.com, March 17, 2025.
- 5“Crapo Says Tax Package Will Be Bigger and Broader Than Expected,” taxnotes.com, March 17, 2025.
- 6“EY’s Rebecca Burch Picked as Treasury’s Top Delegate to OECD,” bloomberglaw.com, March 11, 2025.