Here is a look at recent tax-related happenings on the Hill, including bipartisan legislation that would formally end penny production.
Lately on the Hill
Senate Advances Bipartisan Tax Administration Legislation Before Midterm Recess
Before departing Washington ahead of the November midterm elections, the Senate unanimously passed the bipartisan Taxpayer Assistance and Service Act (S. 5441), a broad tax administration package designed to “improve services provided to taxpayers by the Internal Revenue Service.”
The legislation contains dozens of provisions, with a particular focus on modernizing agency operations and strengthening taxpayer rights. Among its notable reforms, the bill would require the IRS to digitize paper returns and correspondence, while also directing the agency to create a public dashboard allowing taxpayers and tax professionals to view real-time information on call volumes and wait times, processing backlogs, and callback availability.
The authority of the Office of the Taxpayer Advocate would also expand through greater access to IRS information, legal advice, and taxpayer meetings when assisting taxpayers with unresolved issues.
The measure now heads to the House for consideration after the midterm elections.
Common Cents Act Clears Congress, Heads to the President
Congress has passed the bipartisan Common Cents Act (H.R. 10167), legislation that would formally end production of the penny and establish a nationwide framework for rounding cash transactions to the nearest five cents. After passing the House with bipartisan support in September, the measure cleared the Senate by unanimous consent and now awaits the president’s signature.
Under the legislation, pennies already in circulation would remain legal tender, but the U.S. Department of the Treasury would cease producing one-cent coins for general circulation. The bill also would permit cash transactions ending in one, two, six, or seven cents to be rounded down to the nearest nickel, while transactions ending in three, four, eight, or nine cents could be rounded up to the nearest nickel.
Electronic payments would not be subject to the rounding rules, and the legislation protects businesses and financial institutions from violations under federal, state, tribal, or local requirements when following the act’s rounding provisions.
Lawmakers Pass Tax Deadline Relief for Americans Detained Abroad
The End Tax Penalties on American Hostages Act (H.R. 9496) would amend the Internal Revenue Code to postpone certain tax filing and payment deadlines for U.S. nationals who are unlawfully or wrongfully detained abroad or held hostage. The bill also would require the IRS to abate and refund certain interest and penalties assessed during the period of detention and establish a process for eligible individuals to seek refunds of qualifying penalties and interest paid for periods beginning January 1, 2021. After passing the Senate unanimously, the measure heads to the president for signature.
U.S., China Advance “30-for-30” Trade Framework
The U.S. and China have agreed to a new “30-for-30” framework under which the two countries will consider providing reciprocal reduced tariff treatment on approved lists of imported goods totaling roughly $30 billion on each side. The covered products range from consumer goods imported into the U.S. to agricultural, food, and certain medical devices imported into China.
Any tariff reductions would be implemented through each country’s domestic legal processes and are not effective immediately. According to the framework documents, officials will monitor trade in the covered products and recommend adjustments to the lists as necessary.
U.S. Trade Representative Jamieson Greer stated that no date has been set for tariff reductions, underscoring that the agreement establishes a framework for potential tariff relief rather than an immediate reduction in duties.1
USCIB Resumes Direct Issuance of ATA Carnets in the US
The United States Council for International Business (USCIB) announced it has resumed issuing ATA Carnets in the U.S., allowing businesses to apply directly through USCIB for the international customs document.2
ATA Carnets permit the duty-free and tax-free temporary import and export of goods for up to one year and are used in more than 80 countries and customs territories for professional equipment, commercial samples, and exhibition goods.
USCIB noted that the program helps businesses access foreign markets and comes as the international ATA Carnet system continues transitioning to a digital ATA Carnet (eATA) environment, with USCIB working alongside U.S. Customs and Border Protection to prepare for the future U.S. transition. USCIB also noted it remains in partnership with its two authorized service providers: Roanoke Insurance Group and Boomerang Carnets, which may still issue ATA Carnets.
From Treasury & the IRS
IRS Focuses on OB3 Rollout & Deregulation
The IRS and Treasury’s 2026-2027 Priority Guidance Plan outlines 121 guidance projects and underscores two clear priorities: implementing tax changes enacted in the One Big Beautiful Bill Act (OB3) and reducing regulatory burdens. The plan also includes projects related to digital assets, Opportunity Zones, qualified small business stock, and international tax provisions.
Treasury Completes Trump Account Auto Enrollment
Treasury announced that automatic enrollment for Trump Accounts is complete, meaning every eligible child under age 18 now has an account ready to be claimed, with more than 60 million additional children gaining access through the enrollment process. Parents or guardians must claim their child’s account through the official Trump Accounts app to manage the account, enable contributions, and secure the one-time $1,000 Treasury seed contribution, if applicable.
Released Guidance
Scholarship Tax Credit: Temporary regulations (T.D. 10057) establish registration, reporting, and certification procedures needed to implement the new Federal Scholarship Tax Credit. Organizations seeking to receive credit-eligible contributions should review the new registration and reporting requirements, while participating states will need to certify eligible scholarship-granting organizations (SGOs) before contributions can begin on January 1, 2027.
Proposed regulations (REG-117199-25) would provide the substantive rules for the new credit, including requirements for eligible contributions, SGOs, participating states, and student eligibility. The proposal would also establish how states certify eligible organizations and how taxpayers qualify for and claim the new credit beginning in 2027.
For more information, read our FORsights™ article, “IRS Issues Section 25F Scholarship Tax Credit Rules.”
Deregulation: Notice 2026-58 identifies 71 revenue rulings, revenue procedures, notices, and announcements that are now obsolete as part of its ongoing effort to eliminate unnecessary guidance.
Tax Relief: Notice 2026-63 extends tax relief for taxpayers determined by Treasury who were affected by terroristic actions against Israel during 2025 and 2026, postponing certain tax filing, payment, and other time-sensitive deadlines until September 30, 2027. The relief covers eligible individuals and businesses connected to Israel, the West Bank, or Gaza and includes actions such as filing returns, making tax payments, filing refund claims, and petitioning the Tax Court.
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.