Here’s a look at recent tax-related happenings on the Hill, including the budget reconciliation package becoming law. To hear more from our team about the key provisions in the Act and how they may impact taxpayers, join our complimentary webinar on July 17th.
Lately on the Hill
Trump Signs Tax Legislation Into Law
President Donald Trump signed into law the budget reconciliation package, making a host of expiring tax provisions permanent and fulfilling other tax-related campaign promises. The Independence Day signing ceremony punctuated the months-long vigorous debate in Congress, where the House of Representatives narrowly passed the measure on July 3, 2025 by a 218-to-214 vote. The House ultimately accepted the changes to the bill made by the Senate, despite initial pushback from various representatives.
What exactly happened to help get the legislation its required support from Republican representatives during the dwindling hours before the self-imposed July 4 deadline remains to be seen. House Speaker Mike Johnson (R-LA) alluded to discussions before the final vote “about what executive orders will be forthcoming as it relates to the new legislation, and how can we be involved as a House to codify that.”1
The $3.4 trillion dollar package makes permanent most provisions of the Tax Cuts and Jobs Act of 2017 enacted during Trump’s first term. Such provisions include reduced income tax rates, increased alternative minimum tax exemption and phase-out thresholds, and the deduction on pass-through business income. Clean energy credits were significantly curtailed as several—like those relating to clean vehicles—were terminated or are now expiring much earlier than originally set forth.
According to Treasury Deputy Secretary Michael Faulkender, Treasury and the IRS had already been preparing for the potential new tax landscape and the effect it would have on tax returns. “We are deep into the weeds in all of those things,” said Faulkender.2
As the dust settles on the new tax law, Forvis Mazars’ Washington National Tax Office will issue insights into the impact and application of its provisions. Now available on our website is our 2025 Tax Bill Guide, summarizing the key provisions and their effective dates, and a special edition of Tackling Tax with our “top ten” provisions that may impact you. Our professional service teams are also equipped with resources to help you navigate the changes and how they apply to you or your business, so contact us today to learn more about this significant legislation. You can also subscribe to our FORsights™ to receive ongoing thought leadership.
Government Funding Up Next
With the tax act in the rearview mirror and Congress freed up to address other matters, the Senate Appropriations Committee has wasted no time in scheduling a belated hearing for this week on fiscal year 2026 appropriations. Three bills related to government funding are on the docket for markup, including those for Commerce, Justice, Science; Agriculture, Rural Development, FDA; and Legislative Branch. It’s been a long time since Congress has met the initial September 30 deadline, typically resulting in threats of government shutdowns and midnight extensions to avoid them.
Trade Deal Deadline Coming August 1
Reciprocal tariffs on dozens of countries were set to come back into effect on July 9, 2025. The original imposition of the tariffs occurred on April 2, 2025 and was later suspended for three months on April 9, 2025. The additional time was to allow for countries to make deals with the U.S. to avoid higher import duties. Trump stated last week that letters notifying trade partners of expanded duties upwards of 60 or 70% are forthcoming effective August 1, 2025.3
Treasury Secretary Scott Bessent corroborated the revised timeline, stating, “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on Aug. 1, you will boomerang back to your April 2 tariff level.”4
Earlier, administration officials indicated that the July 9 deadline may be adjusted for countries currently negotiating in good faith.5
Last week, Trump announced a deal had been made with Vietnam, adding to deals already made with the United Kingdom and China. Official details have yet to be released; however, the president provided that a 20% tariff will be levied on Vietnamese exports and a 40% on goods transshipped through the country.6 Transshipping occurs when a country routes goods through another country before shipping to the United States. The high tariff on transshipment is seen as a maneuver targeting goods originating from China.7 Reportedly, Vietnam has also agreed to opening its market to previously blocked U.S. imports, modify non-tariff barriers related to intellectual property, and move forward with planned purchases of Boeing aircraft and U.S. agricultural products.8
Canada has dropped its digital service tax that was set to kick in this week after Trump said he would terminate trade discussions in retaliation. According to the country’s finance department, legislation is being worked on to officially repeal the tax. The countries are looking to craft a deal by July 21.9
Meanwhile, the U.K. and France are standing by their respective digital service tax regimes. The agreement made with the U.K. in May did not address the tax.10
From the Treasury & IRS
Notice 2025-36 was issued by the IRS, obsoleting 83 guidance documents, including various notices, revenue procedures, revenue rulings, and announcements. According to the notice, the revoked guidance documents “no longer provide useful information” and the effort will “increase clarity of the tax law.” The action continues the executive directive to reduce federal regulations.
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“Trump Signs Bill to Make Most of TCJA Permanent,” taxnotes.com, July 7, 2025.
- 2“Treasury Seeks Smooth Implementation of Tax Provisions,” taxnotes.com, June 30, 2025.
- 3“Trump Set to Start Notifying Countries of Tariffs Up to 70%,” bloomberglaw.com, July 4, 2025.
- 4“Treasury Secretary Says Some Countries Will See Tariffs ‘Boomerang’ to April Rates by Aug. 1,” msn.com, July 6, 2025.
- 5“Tariff Deadline Gets Fuzzier as White House Sends Mixed Signals,” taxnotes.com, June 30, 2025.
- 6“US Reaches Vietnam Trade Deal with 20% Import Tariff, Trump Says,” bloomberglaw.com, July 2, 2025.
- 7“US Deal Leaves Vietnam Grappling With Role in Global Economy,” bloomberglaw.com, July 3, 2025.
- 8“US and Vietnam Reach Initial Tariff Deal,” politico.com, July 2, 2025.
- 9“Canada Drops Tax That Infuriated Trump to Restart Talks,” bloomberglaw.com, June 30, 2025.
- 10“UK Stands by Digital Tax After Canada Bows to Trump Pressure,” bloomberglaw.com, June 30, 2025.