Here is a look at recent tax-related happenings on the Hill, including three European Union (EU) countries dropping their opposition to the U.S. carve-out for the Organisation for Economic Co-operation and Development (OECD) minimum tax.
Lately on the Hill
Congress Wraps Up Year With Unfinished Business
The 119th Congress is heading home today, wrapping up its first session that saw major tax legislation from the One Big Beautiful Bill Act (OB3) but leaving unfinished business related to healthcare and government funding, which are two urgent issues it will take up at the beginning of the second session after the new year.
The House did pass a healthcare reform bill (H.R. 6703) earlier this week, introduced by Rep. Mariannette Miller-Meeks (R-IA). The measure would expand group health plans, increase oversight of pharmacy benefit management services, and fund cost-sharing reduction payments. Noticeably absent is an extension of the enhanced premium tax credit.
Four Republicans did sign on to a discharge petition filed by Minority Leader Hakeem Jeffries (D-NY) to force a vote on a bill that would extend the tax credits for three years. The vote should be held early next year.1
In addition, the Senate Banking Committee, led by Sen. Tim Scott (R-SC), will look to move forward next year with legislation regulating cryptocurrencies. “From the outset, Chairman Scott has been clear that this effort should be bipartisan,” said Jeff Naft, Scott’s communications director. “The Committee is continuing to negotiate and looks forward to a markup in early 2026.”2
EU Countries Drop Opposition to U.S. Carve-Out for the OECD Minimum Tax
EU countries Estonia, Poland, and the Czech Republic have lifted their objections to the “side-by-side” tax system for the U.S. in conjunction with the OECD’s global minimum tax regime.3
The three countries had initially rejected the plan, bringing the year-end deadline to finalize the global agreement into jeopardy. China, however, is still objecting to it.
Isaac Wood, Treasury acting deputy international tax counsel, expects the “side-by-side” tax system exempting the U.S. from the OECD’s global minimum tax will apply as of January 1, 2026. The anticipated applicability date would avoid a gap between implementation of the new tax system and an expiring safe harbor in which U.S.-owned multinational groups are exempt from the Global Anti-Base Erosion (GLOBE) rules.4
From the Courts
Learning Resources, Inc. v. Trump, 24-128 & Trump v. V.O.S. Selections, 25-250 (Supreme Court Case on IEEPA Tariffs)
The U.S. Supreme Court adjourned this week until January 9, 2026, leaving the prospects of a decision on the legality of the Trump administration’s imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) unlikely this year.
AGS Company Automotive Solutions, et. al. v. U.S. Customs and Border Protection, No. 25-00255 (Preliminary Injunction Motion to Suspend Tariff Liquidation Denied)
Related to the pending Supreme Court decision, the U.S. Court of International Trade has ruled it will not issue an injunction preventing the administration from finalizing import duties while businesses wait on the Supreme Court’s ruling. The court confirmed its authority to order reliquidation and refunds if the Supreme Court were to rule them illegal and asserts that the administration has acknowledged such authority and will not challenge it.5
Riddle Aggregates LLC v. Commissioner, 165 T.C. No. 12 (Tax Court Can Adjudicate Accuracy Penalties Without a Jury Trial)
Tax Court Judge Kathleen Kerrigan found that the public rights exception applies when considering whether the Seventh Amendment’s right to a jury trial applies in instances when accuracy-related penalties are imposed under Section 6662.
The public rights exception lets Congress assign disputes involving government enforcement of statutory public rights—such as taxes, immigration, or regulatory compliance—to administrative agencies without a jury trial.
From Treasury & the IRS
OIRA Reviewing Clean Fuel Production Credit Rules
The Office of Information and Regulatory Affairs (OIRA) has received proposed regulations for the §45Z Clean Fuel Production Credit, bringing the rules one step closer to being released.
Released Guidance
Final regulations (T.D. 10041) clarifying how qualified derivative payments related to securities lending transactions are determined and reported for purposes of the base erosion and anti-abuse tax (BEAT).
The U.S. Department of the Treasury and the IRS are withdrawing proposed regulations dealing with relief from joint and several tax liability for married individuals who filed joint returns. The proposed regulations (REG-132251-11 and REG-134219-08) were issued in 2013 and 2015, respectively. The guidance states that Treasury and the IRS are devoting time and resources to other matters, would like to further consider the proposed rules given the volume and scope of the comments received, and given the time passed since their issuance would like to again provide notice and request public comments.
The Financial Crimes Enforcement Network (FinCEN) has extended the Report of Foreign Bank and Financial Accounts (FBAR) filing deadline to April 15, 2027 for certain U.S. individuals who have signature authority over foreign financial accounts but no financial interest in them, due to ongoing rulemaking to clarify exemptions under the Bank Secrecy Act. All other individuals with FBAR obligations must still file by April 15, 2026.
From the States
Illinois S.B. 1911, signed by Gov. J.B. Pritzker on December 12, 2025, updates prior references to global intangible low-taxed income (GILTI) in Illinois law to include references to net controlled foreign corporation (CFC) tested income (NCTI). Historically, GILTI was not subject to tax in Illinois, but the Illinois budget package signed by Pritzker on June 16, 2025 changed the law to allow only a 50% subtraction for GILTI. The newest legislation updates the references contained in the earlier legislation due to the change in nomenclature and continues to limit the subtraction to 50% of NCTI.
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“These 4 rogue Republicans joined Democrats’ ObamaCare discharge petition,” thehill.com, December 17, 2025.
- 2“Crypto Bill Slides to Next Year as Senate Panel Delays Vote,” bloomberglaw.com, December 15, 2025.
- 3“EU Holdouts Clear the Way for OECD Pillar 2 Side-by-Side Plan,” taxnotes.com, December 18, 2025.
- 4“Pillar 2 Side-by-Side Tax System Would Take Effect January 2026,” taxnotes.com, December 15, 2025.
- 5“US Trade Court Won’t Pause Customs Process Amid Tariff Fight,” bloomberglaw.com, December 15, 2025.