Here is a look at recent tax-related happenings on the Hill, including nominations announced for federal leadership roles.
Lately on the Hill
Bipartisan Support for Housing Act
On June 23, 2026, Congress passed the bipartisan 21st Century ROAD to Housing Act (H.R. 6644). However, it remains on President Donald Trump’s desk pending further action. The act is designed to address the U.S. housing affordability crisis by easing regulations, updating federal programs to build new homes, and restricting private equity’s ability to buy single-family homes.1 More details about the act can be found in our FORsights™ article, “Housing Bill Passes, With President Trump for Signature.”
Nominations Sent to Senate
On June 23, 2026, the White House announced nominations for federal leadership roles, which are now pending Senate confirmation. Of note, Trump nominated Jim Gadwood to serve as the chief counsel of the IRS and assistant general counsel in the U.S. Department of the Treasury. Sen. Ron Wyden (D-OR) stated that any nominee of Trump will have to face questions related to the president’s audit immunity deal by the U.S. Department of Justice.2
Potential Digital Services Tax
In response to the potential imposition of a national digital services tax (DST), Trump forewarned the European Union (EU) stating that “any Country that imposes such a Tax will immediately be met with a 100 percent TARIFF on any and all Goods sent to the United States of America.”3 The EU member states believe they have a right to impose such a tax as their right to regulate the economic activities in their territories. However, these DSTs may mostly fall on U.S.-headquartered companies.
CAPE Enhancements Deployed
U.S. Customs and Border Protection has announced the successful deployment for enhancements to the Consolidated Administration and Processing of Entries (CAPE) application in the Automated Commercial Environment Secure Data Portal for International Emergency Economic Powers Act (IEEPA) refund claims. Effective June 29, 2026, CAPE now accepts entries flagged for reconciliation for which the reconciliation had not been filed.
EU Tax Simplification
On June 24, 2026, the European Commission proposed tax bills aimed at simplifying the EU tax framework on direct taxation while supporting the growth and competitiveness of the EU.4 The bills are broken into two council directives: EU Tax Omnibus and the Directive on Administrative Cooperation (DAC) recast. The Tax Omnibus Directive is aimed at simplifying the EU direct tax directives, while the DAC recast is aimed at simplifying tax transparency obligations. The bills are estimated to save businesses up to $9.1 billion in annual compliance costs. Read more about these two proposals in the alert from Forvis Mazars Group’s, “EU tax simplification package unveiled: what businesses need to know.”
From the Courts
Sales Price, Rather Than Fair Market Value, Is Considered Just Compensation in Tax Foreclosure
The U.S. Supreme Court issued its opinion in Pung v. Isabella County5 on June 23, 2026, declaring that the sales price from a tax foreclosure sale is the baseline for “just compensation” under the Takings Clause of the Fifth Amendment. The taxpayers owed approximately $2,500 in real property taxes, prompting local tax authorities in Isabella County, Michigan, to initiate foreclosure proceedings. The home, which had an assessed value of $194,400, was sold at public auction for $76,008. The court sought to keep the full $76,008 and the taxpayer sued in federal court.
Relying on the Supreme Court’s decision in Tyler v. Hennepin County,6 which held that under the Fifth Amendment Takings Clause the government was required to return any surplus proceeds from tax foreclosure sales, the taxpayer was granted partial summary judgment on the Fifth Amendment claim. The federal district court held that the taxpayer should receive only the surplus proceeds (after taking account of the tax debt) from the sales price and not compensation for the property’s fair market value. The Sixth Circuit affirmed.
The Supreme Court agreed and determined that when the sale is fairly conducted, the proper baseline for measuring “just compensation” under the Takings Clause following a tax sale is the auction sales price and not the hypothetical fair market value. The Supreme Court also denied the taxpayers’ argument under the Eighth Amendment Excessive Fines Clause, finding it lacked historical and precedential support for such argument. The case was remanded to the Sixth Circuit to determine whether the taxpayer’s procedural arguments were preserved.
Streaming Providers Ruled Not Subject to Texas Franchise Fee
In City of Dallas v. Disney DTC, LLC,7 more than 30 Texas cities sued alleging that under the Public Utilities Regulatory Act (PURA), the streaming providers owed each city 5% of their gross revenue from operations in that city. The cities alleged the streaming providers violated PURA by failing to obtain a state-issued certificate of franchise authority and failing to pay franchise fees to the cities despite using the public rights-of-way by delivering video content. The Texas Court of Appeals for the Fifth District affirmed the lower court’s dismissal on June 22, 2026 and declined to reconsider a previous ruling from the court. The court held that “the PURA grants exclusive franchising authority to the Public Utilities Commission, and the Cities thus had no authority to compel the Streaming Providers to obtain a certificate of franchise authority.”
From Treasury & the IRS
Country-by-Country Reporting
The IRS is requesting comments on the information collection for Form 8975 (country-by-country reporting). There is no change to the existing collection but rather an extension of the currently approved information collection.
Crypto Voluntary Disclosure Rules
According to the IRS Criminal Investigation Chief Jarod Koopman, the IRS is expected to release guidance on voluntary disclosures for digital assets.8 The expected guidance is intended to help taxpayers come forward with cryptocurrency-related tax compliance issues, report any violations, and potentially reduce penalties associated with any violations.
Released Guidance
AI Guidelines in Federal Tax Practice: Issue Number: 2026-19 has been released by the IRS Office of Professional Responsibility, introducing guidelines for artificial intelligence (AI) use in federal tax practice. The guidelines assist tax practitioners on how to use AI responsibly under Circular 230. In addition, the issue details the risks associated with the use of AI, including, but not limited to, inaccuracies, bias, and lack of transparency.9
State Tax Updates
Illinois Adopts Social Media Fee, Digital Ad Tax
Signed by Gov. JB Pritzker on June 16, 2026, the Illinois budget bill S.B. 3019 provides numerous state and local tax updates. Among those, the state has adopted a social media platform fee, a targeted advertising fee, and a digital asset tax.10 The social media platform fee is a monthly fee based on the number of Illinois users of the platform. The taxpayer must submit the report of average monthly Illinois users to the secretary of state within 14 days of each month. The targeted advertising fee is a 10% tax on providers of targeted advertising services with more than $1 million in cumulative gross receipts. The digital asset tax is a 0.2% privilege tax collected by digital asset brokers with nexus in Illinois on the value of digital asset business activity. Find out more details about the bill in our FORsights article, “Illinois FY 2027 Budget Bill Contains Significant Tax Changes.”
Vermont Tax Bill
On June 18, 2026, Gov. Phil Scott signed H. 933 (Act 164) into law, which provides various changes to the state’s tax laws. The legislation updates Vermont’s conformity to the Internal Revenue Code (IRC) in effect as of December 31, 2025 and selectively decouples from certain One Big Beautiful Bill Act provisions, including, but not limited to, the federal treatment of bonus depreciation on qualified production property under Internal Revenue Code Section 168(n), most of the domestic research and experimental expensing for taxpayers under IRC §174A, Foreign-Derived Intangible Income and Global Intangible Low-Tax Income Deduction under IRC §250, and income excluded from the sale of qualified small business stock under IRC §1202. For tax years beginning on and after January 1, 2027, the new legislation increases Vermont’s research and development (R&D) tax credit from 27% to 75% of the amount of the federal credit allowed in the taxable year for eligible R&D expenditures.
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“Lawmakers Clamor for Housing Encore After Bipartisan Bill Passes,” news.bloombergtax.com, June 24, 2026.
- 2“Trump Picks Tax Controversy Lawyer for IRS Chief Counsel Job,” news.bloombergtax.com, June 23, 2026.
- 3“U.S. Tariff Threat Looms Over Digital Tax Talks,” taxnotes.com, June 29, 2026.
- 4“Businesses Urge EU Countries’ Action on Tax Simplification,” news.bloombergtax.com, June 24, 2026.
- 5Pung v. Isabella County (No. 25-95) (June 23, 2026).
- 6Tyler v. Hennepin County, 598 U.S. 631 (2023).
- 7City of Dallas v. Disney Platform Distribution. Inc., Hulu, LLC, & Netflix, Inc., No. 05-24-00712-CV (Tex. App. – Dallas June 22, 2026).
- 8“IRS to Release Crypto Voluntary Disclosure Rules Within Months,” taxnotes.com, June 29, 2026.
- 9“IRS Issues Guidance to Tax Pros on Responsible AI Use,” taxnotes.com, June 25, 2026.
- 10“Final Illinois Budget Includes Social Media Fee, Digital Ad Tax,” taxnotes.com, June 17, 2026.