Here’s a look at recent tax-related happenings on the Hill, including the passage of the GENIUS Act and Republicans considering another filibuster-proof reconciliation bill for this fall.
Forvis Mazars recently released the article “State and Local Tax Aspects of the 'One Big Beautiful Bill.’” We invite you to read this article to understand the state and local implications of the act's provisions.
Lately on the Hill
Crypto Currency Legislation Enacted
A new chapter opened last week with the passing of the first major legislation to regulate crypto currency in the United States. The GENIUS Act sets forth rules governing stablecoins, a type of digital currency whose value is linked to that of another asset, such as the U.S. dollar.
After passing in the Senate, the act passed the House in bipartisan fashion by a 308-to-122 vote. On July 18, 2025, the act was signed into law by President Donald Trump. The legislation establishes a regulatory framework and guidelines for banks that issue stablecoins. According to a fact sheet provided by the White House, “The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.”
Two other pieces of legislation, the Digital Asset Market Clarity Act of 2025 and the Anti-CBDC Surveillance State Act, also passed the House. The bills distinguish regulatory jurisdiction for digital assets and prohibit the Federal Reserve from issuing a central bank digital currency.1 Both measures have yet to be passed by the Senate.
Congress Contemplating Second Reconciliation Bill
October 1, 2025 marks the beginning of the next fiscal year for the federal government and a fresh opportunity at another budget reconciliation bill. Three weeks have not yet passed since the One Big Beautiful Bill Act (OBBBA) was enacted and Republicans are already contemplating another filibuster-proof reconciliation bill for this fall.
The bill would look to further reduce government spending on Medicaid and new cuts for Medicare, while making technical corrections to tax provisions in the OBBBA. A second bite at the apple would appease conservative factions of the Republican party, who felt like the spending cuts were insufficient in the OBBBA before ultimately voting for it.2
Members of Congress may lack the will and political capital for another knock-down, drag-out process. “We got a lot done,” said U.S. Rep. Blake Moore (R-UT), who sits on the House Ways and Means Committee. “So I don’t necessarily feel like there’s this big pressure for a tax extender by the end of this year.”3
If a second reconciliation bill were pursued by the current Congress, it may also include the House’s proposed increase of the Section 199A deduction on pass-through business income from 20% to 23% and a so-called SECURE Act 3.0, building on previous SECURE Acts and expanding retirement benefits for a wider range of Americans.4
Tariff Revenue Hits $100 Billion as Countries Race to Beat Deadlines
Tariff revenue exceeded the $100 billion mark for the fiscal year, as June’s revenue surpassed last year’s amount by approximately 13%. The month ended with a $27 billion surplus as opposed to a $71 billion deficit in June 2024. Treasury Secretary Scott Bessent has predicted that the U.S. could receive more than $300 billion in tariff revenue by the end of this year.5
The U.S. Department of Justice (DOJ) is directing resources and has tasked its Market Integrity and Major Frauds Unit to tariff evasion cases. According to Matt Galeotti, who leads the criminal division of the DOJ, additional personnel will be added to the unit.6
The August deadlines are approaching for countries around the world to make trade deals with the United States. The world’s second largest economy, China, has been given until August 12 before triple-digit tariffs come back into effect. The administration is seeking a trade summit with President Xi Jinping and has extended an olive branch by lifting a ban on sales of the H20 chip by the Nvidia Corporation and delaying sanctions on Chinese chip manufacturers. Bessent has also indicated that the U.S. may be willing to delay the August deadline.7
The administration struck a deal with Indonesia, which will receive a 19% rate as opposed to the 32% rate the U.S. was planning to levy. Trump stated that a deal with India is close to being made and expects it to be similar to the deal with Indonesia.8 Indonesia agreed to open its markets to U.S. goods tariff-free and purchase nearly $20 billion in U.S. energy and agricultural products, while also purchasing 50 Boeing jets.9
The president also said that more than 150 smaller countries, which do not have significant trade with the U.S., would be receiving letters notifying them of 10% or 15% tariffs soon.10
On the other hand, the European Union (EU) has prepared its own retaliatory tariffs on €72 billion of U.S. goods. The bloc is facing a 30% tariff beginning August 1 that could increase by the amount of counter tariffs the EU decides to impose on the United States. The trading partners are still working out a deal that may require more time beyond the August deadline.11
Executive Order Establishes New Excepted Service Schedule
On July 17, 2025, Trump issued an executive order establishing Schedule G of Civil Service Rule VI, which is amended for “positions of a policy-making or policy-advocating character normally subject to change as a result of a Presidential transition.”
From the Treasury & IRS
Kies Takes Over as Acting IRS Chief Counsel
Kenneth Kies, Treasury assistant secretary for tax policy, has replaced Andrew De Mello as acting IRS chief counsel. It is anticipated that Kies will serve in both roles until the Senate confirmation of Donald Korb, who was nominated by Trump in May to fill the position.12
Released Guidance
Revenue Procedure 2025-25 sets forth indexing adjustments to the applicable percentage table used to calculate an individual’s premium tax credit for taxable years beginning in calendar year 2026. The indexing adjustment is also provided for the required contribution percentage.
Revenue Ruling 2025-14 provides the August 2025 applicable federal rates (AFR), adjusted AFR, adjusted federal long-term rate and long-term exempt rate, percentages for determining the low-income housing credit, and the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or reversionary interest.
Revenue Ruling 2025-15 gives guidance with respect to withholding and reporting issues for uncashed retirement plan distribution checks and replacement checks.
Notice 2025-39 sets forth the corporate bond monthly yield curve and corresponding spot segment rates, the 24-month average corporate bond segment rates, and the 30-year Treasury securities interest rates and weighted average rates.
Notice 2025-40 provides updated static mortality tables used for defined benefit pension plans and applied for purposes of calculating the funding target and other items for valuation dates occurring during the 2026 calendar year.
Tackling Tax
Be sure to catch this week’s installment of our new show “Tackling Tax,” where we’ll bring you the latest on tax policy and strategies. In our sixth episode, we’ll explore renewables and clean energy tax credits with Troy Taylor, leader of the Inflation Reduction Act consulting team, along with Tyler Baity, leader of the renewable energy sector team at Forvis Mazars.
