Here is a look at recent tax-related happenings on the Hill, including increasing optimism that bipartisan action could be taken on cryptocurrency taxation by year-end.
Lately on the Hill
Trump-Xi Summit Talks Held as White House Offers Few Public Details
U.S. President Donald Trump and Chinese President Xi Jinping met in Beijing and held more than two hours of private talks. The meetings occurred alongside disruptions in global energy flows tied to the closure of the Strait of Hormuz, and the White House said China is interested in purchasing more U.S. oil to reduce reliance on the waterway.1 The trip included a delegation of U.S. business leaders.
Crypto Tax Policy Gains Momentum as House & Senate Efforts Advance
House tax writers held a closed-door Ways and Means Committee roundtable on cryptocurrency taxation, and lawmakers said the session increased optimism that bipartisan action could be taken by year-end.2 Committee Chair Jason Smith (R-MO) said he has been working on a proposal to revise the tax code to account for digital assets and that tax legislation should only proceed with bipartisan support.3 In the Senate, the Banking Committee advanced the Digital Asset Market Clarity Act of 2025 (H.R. 3633) to the Senate floor by a 15-to-9 vote, with bipartisan support.4 Senate negotiators continued to press for changes before final floor consideration, including an ethics-related provision restricting government officials’ engagements with digital assets.
Congress Weighs Short-Term Fuel Tax Relief
A potential federal gas tax holiday is gaining momentum after Trump said he supports suspending the federal gasoline tax amid rising prices at the pump.5 Sen. Josh Hawley (R-MO) introduced the Gas Tax Suspension Act (S. 4485) to suspend federal gasoline and diesel taxes. Multiple proposals are circulating, and related reporting has noted that a federal suspension could reduce federal revenues by billions of dollars per month.6
From the Courts
Tariff Litigation Continues as Global Surcharge Ruling Is Stayed on Appeal
In Oregon v. United States and Burlap and Barrel Inc. v. United States,7 the U.S. Court of International Trade held that Trump’s 10% “temporary import surcharge” under Section 122 of the Trade Act of 1974 exceeded statutory authority and entered relief limited to certain plaintiffs.8 The administration appealed and sought to keep collections in place during the appellate proceedings; the appeals court temporarily paused the trade court ruling pending appeal.9 In related filings, the government reported progress processing importer refunds tied to earlier tariffs found unlawful under the International Emergency Economic Powers Act (IEEPA), including $35.5 billion cleared for payment through the Consolidated Administration and Processing of Entries (CAPE) portal.10
From Treasury & the IRS
Treasury & IRS Signal Incoming Guidance Across Multiple Areas
In remarks at the American Bar Association (ABA) Tax Section May 2026 meeting and related comments later in the week, U.S. Department of the Treasury and IRS officials previewed a broad pipeline of anticipated guidance across multiple priority areas:
- 2025 tax law implementation guidance,11 with additional releases expected through year-end, including items addressing tax-exempt executive compensation, business meals and entertainment, and pass-through deductions.12
- International and transactional guidance, including proposed rules expected this summer on currency gains and losses,13 clarification on foreign governments’ U.S. investment income rules,14 and regulations on an expanded startup capital-gains tax break.15
- Retirement and account guidance, including Trump Accounts, e.g., nondiscrimination rules and trustee selection,16 additional Secure 2.0 items,17 and Saver’s Match guidance incorporating the president’s executive order on retirement plan access.18
- Corporate guidance, including timing updates for the corporate alternative minimum tax (AMT) proposed package,19 including reproposed regulations expected in February 2027,20 and updates related to spinoff ruling procedures21 and potential limits on “stacking” qualified small business stock (QSBS) exclusions.22
IRS Announces New Conservation Easement Settlement Offer
The IRS is offering a new settlement to taxpayers involved in syndicated conservation easement disputes as it seeks to reduce a large U.S. Tax Court backlog. Conservation easements are agreements that restrict development to preserve land for conservation purposes. In recent years, the IRS has challenged “syndicated” easement structures that were marketed to generate inflated charitable deductions. The offer is valid for 90 days, disallows charitable contribution deductions, and applies a 10% penalty and interest. Eligible partnerships accepting the terms of the IRS’ latest settlement offer would not be required to pay the full settlement amount up front.
Taxpayer Advocate Highlights Pandemic-Era Refund Stakes & Upcoming Penalty Relief Automation
National Taxpayer Advocate Erin Collins said potentially billions of dollars could be at stake if tens of millions of Americans claim pandemic-era refunds after a recent court ruling.23 The ruling may enable a large-scale refund opportunity with a potentially significant fiscal impact if claims materialize. To learn more about potential refund opportunities for penalties and interest assessed during the COVID-19 period, see our FORsights™ article, “Act Now: Deadline Fast Approaching for Potential IRS Refunds.”
Separately, Collins also said the IRS is close to launching a program to automatically apply first-time penalty abatement for eligible taxpayers with a clean compliance record, rather than requiring taxpayers to call or submit a request.24 The automation is intended to apply to eligible penalties beginning in tax year 2025.
OECD Provides Relief on UTPR Safe Harbor & GIR Filings
The Organisation for Economic Co-operation and Development (OECD) issued administrative guidance clarifying how the transitional undertaxed profits rule (UTPR) safe harbor applies to multinational groups with 52- to 53-week fiscal years, ensuring these taxpayers can still access relief despite nonstandard reporting periods. The guidance aligns the safe harbor’s timing rules with these fiscal years so that qualifying groups may continue to treat UTPR tax as zero during the transition period.
In addition, the OECD released guidance supporting centralized filing and exchange of the Global Anti-Base Erosion Rules (GloBE) Information Return (GIR) for the 2024 reporting year, allowing multinational groups to file a single return in one jurisdiction that can then be shared with other tax authorities through exchange agreements. The agreement addresses early practical challenges, including allowing flexibility such as waiving penalties or not enforcing local filing requirements before exchange mechanisms are fully operational. GIRs are required to be filed for the 2024 fiscal year by June 30, 2026. For more details, see our FORsights article, “OECD Eases GloBE Filing Concern.”
Released Guidance
Update to Rates and Yield Curves: Notice 2026-31 provides the corporate bond monthly yield curve and corresponding spot segment rates derived from April 2026 data, the 24‑month average corporate bond segment rates applicable for May 2026, and the 30‑year Treasury securities interest rates and weighted average rates.
Defined Benefit Pre‑Approved Plans (Cycle 4) 2026 Cumulative List: Notice 2026‑34 publishes the 2026 cumulative list of qualification requirement changes for defined benefit qualified pre‑approved plans for Cycle 4 and is intended to assist providers seeking IRS opinion letters; the Cycle 4 submission period begins August 1, 2026 and ends July 31, 2027.
June 2026 AFR: Revenue Ruling 2026-11 provides the June 2026 applicable federal rates (AFR), adjusted AFR, adjusted federal long-term rate and long-term tax-exempt rate, percentages for determining the low-income housing credit, and the federal rate for determining the present value of an annuity, and interest for life or for a term of years, or a remainder or reversionary interest.
Fertility Benefits as Limited Excepted Benefits: Proposed regulations (REG-118484-25) would establish certain fertility benefits as a new category of limited excepted benefits, which are generally exempt from federal market requirements applicable to group health plans and health insurance coverage. The proposed rules cite Executive Order 14216 on expanding access to in vitro fertilization (IVF) and describe the change as intended to reduce regulatory burden for employers seeking to offer fertility benefits.
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 Says China’s Xi Likes the Idea of Buying More Oil From US,” news.bloombergtax.com, May 14, 2026.
- 2“House Tax-Writers Huddle Over Crypto, Inching Toward a Bill,” bloomberglaw.com, May 14, 2026.
- 3“Ways and Means chief says he’s focused on bipartisanship,” politico.com, May 14, 2026.
- 4“Senate panel advances crypto bill with Democrats split after spat over amendments,” politico.com, May 14, 2026.
- 5“Gas Tax Holiday Gains Momentum on Trump Backing,” taxnotes.com, May 12, 2026.
- 6“Federal Gas Tax Suspension Would Cost US Billions Each Month,” bloomberglaw.com, May 11, 2026.
- 7State of Oregon v. United States & Burlap and Barrel, Inc. v. United States, Slip Op. 26-47, Court Nos. 26-01472-3JP & 26-01606-3JP (Ct. Int’l Trade May 7, 2026).
- 8“Appeals Court Restarts Trump’s 10 Percent Tariffs,” taxnotes.com, May 13, 2026.
- 9“US Asks to Keep Collecting Trump’s Tariffs After Court Loss (1),” bloomberglaw.com, May 11, 2026.
- 10“Tariff Refunds of $35.5 Billion Cleared for Importers So Far (1),” news.bloombergtax.com, May 12, 2026.
- 11“Treasury Plans Tax and Spending Law Guidance By Year End (1),” bloomberglaw.com, May 14, 2026.
- 12“Treasury Plans Tax and Spending Law Guidance By Year End (1),” bloomberglaw.com, May 14, 2026.
- 13“IRS Plans to Propose Currency Gain, Loss Tax Guidance by Summer,” news.bloombergtax.com, May 8, 2026.
- 14“Treasury Plans Clarification of Foreign-Government Income Regs,” bloomberglaw.com, May 8, 2026.
- 15“Treasury Working on Rules for Expanded Startup Tax Break,” bloomberglaw.com, May 9, 2026.
- 16“IRS Official Details Trump Account Guidance Considerations,” bloomberglaw.com, May 8, 2026.
- 17“Treasury Working on Guidance for Flurry of Secure 2.0 Provisions,” bloomberglaw.com, May 8, 2026.
- 18“Treasury Aims to Meld Trump Order with Saver’s Match Guidance,” bloomberglaw.com, May 8, 2026.
- 19“Second Proposed Corporate AMT Regulation Package Slips to 2027,” taxnotes.com, May 11, 2026.
- 20“Treasury to Repropose Book Minimum Tax Rule Package in 2027,” bloomberglaw.com, May 14, 2026.
- 21“Officials Confirm Withdrawn Regs No Longer Guide Spinoff Rulings,” taxnotes.com, May 12, 2026.
- 22“Qualified Small Business Stock Guidance May Limit Stacking,” taxnotes.com, May 12, 2026.
- 23“Billions in Covid-Era Tax Refunds Could Be Paid, Watchdog Says,” bloomberglaw.com, May 8, 2026.
- 24“Automated First-Time Penalty Relief Rolling Out Soon,” taxnotes.com, May 11, 2026.