Here is a look at recent tax-related happenings on the Hill, including uncertainty in the Senate for a package of bipartisan tax administration measures passed in the House.
Lately on the Hill
House Advances DHS-Funding Reconciliation Framework; Tax Provisions Not Included
The House approved a fiscal year (FY) 2026 budget resolution, S. Con. Res. 33, which sets the stage for a follow-on reconciliation bill focused on multiyear funding for U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP). The House voted largely along party lines (215 to 211) after the Senate approved the resolution last week. The reconciliation instructions direct relevant committees to develop and submit legislation within their jurisdictions by May 15, 2026, and no tax policy changes are included in this reconciliation vehicle.
Separately, President Donald Trump signed H.R. 7147, the Homeland Security and Further Additional Continuing Appropriations Act, 2026, into law on April 30, 2026, providing FY 2026 funding for the U.S. Department of Homeland Security while specifying $0 for the ICE and CBP Border Security Operations amounts reflected in the explanatory statement.
House Advances Nine Bipartisan Tax Administration Measures; Senate Path Unclear
On April 27, 2026, the House passed a package of bipartisan bills aimed at improving tax administration, including measures focused on taxpayer service modernization, paper processing, privacy safeguards for certain information requests, and whistleblower program updates.1 Despite strong House support, the Senate path remains uncertain as Senate tax writers continue to pursue a broader tax administration vehicle that has not yet been scheduled for markup.
Executive Order Establishes Access to Low-Cost IRAs
Trump signed an executive order directing the U.S. Department of the Treasury to establish TrumpIRA.gov, a federal platform intended to connect workers who do not have access to an employer-sponsored retirement plan with “high-quality, low-cost” individual retirement accounts (IRAs) offered by private-sector financial institutions.2 The White House described the effort as linking workers to the Federal Saver’s Match, up to $1,000 a year, for eligible lower- and middle-income workers who contribute to qualifying retirement accounts. The White House said the platform is expected to be operational by January 1, 2027 and will allow workers to filter and compare IRAs based on cost, quality, and investment options.3
Tariff Refund Portal (CAPE) Reports Early Validation Rejections as CBP Begins Processing IEEPA Duty Refunds
CBP launched Phase 1 of its Consolidated Administration and Processing of Entries (CAPE) capability within the Automated Commercial Environment (ACE) on April 20, 2026 to refund International Emergency Economic Powers Act (IEEPA) duties with interest. According to a declaration submitted by Brandon Lord, executive director in CBP’s Office of Trade, as of April 26, 2026, 75,306 CAPE declarations had been submitted; 47,315 passed file validations; and those successful declarations covered 11,222,927 entries that passed entry-specific validations and were accepted for removal of IEEPA duties through CAPE.4 Over the same period, 2,124,394 entries included on declarations that passed file validations were rejected for failing entry-specific validations, and approximately 1,740,000 accepted entries had been liquidated and were in the refund stage of the process.
In an April 28, 2026 order in Euro-Notions Florida, Inc.,5 the U.S. Court of International Trade noted user-reported issues with Phase 1 implementation, including difficulties accessing ACE, such as long wait times for account resets, over-registration of training events, and confusion about identifying the correct importer for a CAPE declaration.6 The court also described questions raised about the interest rate and CBP’s interest calculation method, reports that IEEPA duties may still be collected on certain reconciliation adjustments, and continuing limitations for entry categories not eligible for the first phase, including reconciliation entries, certain suspended entries, and finally liquidated entries. The order states that CBP anticipated issuing the first refund on or about May 11, 2026 and directed CBP to file a short progress report on the first phase by May 12, 2026.
Trump Announces 25% Tariff on European Auto Imports
Trump announced that the U.S. will increase tariffs on cars and trucks imported from the European Union (EU) to 25%, asserting that the EU is not complying with a previously agreed trade deal. He emphasized that the tariffs would not apply to vehicles manufactured in U.S. plants, framing the policy as an incentive for foreign automakers to expand domestic production. The president pointed to more than $100 billion in announced investments in U.S. auto and truck manufacturing as evidence that the strategy is accelerating onshoring and job creation.7
From Treasury & the IRS
U.S. & Croatia Sign Protocol Amending Income Tax Treaty
On April 28, 2026, Treasury said in a press release that the U.S. and Croatia signed a protocol updating the countries’ income tax treaty.8 The protocol amends the 2022 framework to align with the current U.S. tax law and includes updates addressing double tax relief and limitation on benefits provisions. The update may affect withholding outcomes and eligibility for treaty-based relief, including under anti-treaty-shopping provisions.
President Nominates McMaster to Treasury Financial Markets Post
Trump nominated G. Hunter McMaster II to serve as assistant Treasury secretary for Financial Markets, although he has been performing the duties of the post since last July.9 Prior to joining the Treasury Department, McMaster was the trading chief of a hedge fund, Key Square Group, which was managed by current Treasury Secretary Scott Bessent. In addition, Treasury announced several personnel changes involving liaison to the White House, deputy secretary of the Treasury, senior advisor to the secretary, and deputy assistant secretary for trade and investment.
IRS Adds Streamlined Process to Extend ERC Refund-Suit Deadline
The IRS announced a new streamlined option for certain taxpayers to request more time after an Employee Retention Credit (ERC) claim disallowance by submitting Form 907, Agreement to Extend the Time to Bring Suit, through the IRS Document Upload Tool. Eligible taxpayers generally have two years from the date of Letter 105-C or 106-C to resolve the claim administratively or file a refund suit and an administrative appeal does not extend that statutory deadline. The new upload option applies if (1) the taxpayer is waiting for the IRS to consider their response to the disallowance and (2) has six months or less remaining before the two-year period expires. The IRS will send Notice CP320B to taxpayers it identifies as eligible and will inform taxpayers in writing whether the IRS has agreed to the extension.
Released Guidance
Indian Fishing Rights-Related Activity Treated as Compensation for Section 415 Limits: The IRS issued final regulations (T.D. 10046) providing that amounts paid to a member of an Indian tribe as remuneration for services performed in a fishing rights-related activity may be treated as “compensation” for purposes of applying the qualified plan benefit and contribution limits under Internal Revenue Code (IRC) §415.
Temporary Regulations on Payments for Previously Taxed Dyed Fuel: The IRS issued temporary (T.D. 10047) and proposed regulations (REG‑119294‑25) regarding the statutory provision allowing payments to taxpayers for certain previously taxed dyed fuel. The regulations provide guidance on which taxpayers may claim the payments and the procedures for doing so, and notes that the text of the temporary regulations also serves as the text of the proposed regulations. The temporary regulations apply to removals of eligible dyed fuel occurring on or after December 31, 2025 and are scheduled to expire the earlier of May 1, 2029 or a statutory change affecting appropriation authority for payments to persons other than the taxpayer that paid.
Updated Static Mortality Tables: Notice 2026-27 specifies updated static mortality tables to be used for defined benefit pension plans under IRC §430(h)(3)(A) and §303(h)(3)(A) of the Employee Retirement Income Security Act (ERISA), applying for valuation dates occurring during the 2027 calendar year. The notice also specifies a mortality table for use in determining minimum present value under IRC §417(e)(3) and §205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the 2027 calendar year.
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“House Passes Suite of Bipartisan Tax Administration Bills,” taxnotes.com, April 28, 2026.
- 2“Trump Signs Executive Order to Expand Access to Retirement Plans,” news.bloombergtax.com, April 30, 2026.
- 3“Trump Signs Order to Expand Retirement Account Access,” taxnotes.com, May 1, 2026.
- 4Brandon Lord, Declaration Responding to April 14, 2026 Court Order, filed Apr. 28, 2026 (Court No. 25-00595).
- 5Euro-Notions Fla., Inc. v. U.S. Customs & Border Prot., Court No. 25-00595 (Ct. Int’l Trade Apr. 28, 2026) (Order).
- 6U.S. Ct. Int’l Trade Order (Apr. 28, 2026) (Court No. 25-00595).
- 7Donald J. Trump, truthsocial.com, May 1, 2026.
- 8“US, Croatia Sign Off on Amendments to Income Tax Treaty,” news.bloombergtax.com, April 28, 2026.
- 9“Trump Nominates Ex-Bessent Hedge Fund Executive to Treasury Post,” news.bloombergtax.com, April 28, 2026.