Accounting
Resolution to reconciliation: What’s ahead in tax legislation
Congress has been extremely busy, with both bodies passing budget resolutions. However, they have passed very different budget resolutions, according to Marc Gerson, former chief tax counsel to the House Ways and Means Committee and a member at law firm Miller & Chevalier.
“They have to agree to a concurrent budget resolution to unlock the budget reconciliation process,” he said. “This month has been taken up by dealing with funding the government to avoid a shutdown, with a recess scheduled for this week. They have to await the results of the Florida special election, which will give Republicans more breathing room in the House. The House has outlined what a tax package would be, of $4.5 trillion using a standard current law baseline including extensions of the [Tax Cuts and Jobs Act] and expiring provisions.”
That, he noted, may not be sufficient to cover the permanency of the TCJA and other expiring provisions, and the promises made by President Trump during the campaign, such as no tax on tips, Social Security, and overtime pay.
“If they ultimately agree to the House approach, they have to either add revenue raisers, or additional spending cuts or abandon permanency and agree to shorter-term extensions,” he explained. “That would create room to add other things, or to use the current policy baseline. Then they would not have to pay for the extension of current law, and it would provide more flexibility, but it’s unclear whether it would pass muster with the Senate parliamentarian.”
A key priority for lawmakers is the extension of the “Big Three” business extenders, according to Gerson: R&D expensing, EBITDA-based interest expense deductions, and 100% bonus depreciation. They are also debating the retroactive effective date, with Trump proposing Jan. 20, 2025, which may complicate efforts to secure earlier relief.
“R&D, Section 163(j) EBITDA, and 100% bonus depreciation will definitely be included, but there is uncertainty as to whether they will be applied retroactively,” he said.
“These three provisions were enacted as part of the Tax Cuts and Jobs Act of 2017 but were sunset due to revenue limits,” he explained.
Fully deductible R&D expenditures expired at the end of 2021, along with the ability to use EBITDA for the 163(j) interest expense deduction limitation, and 100% bonus depreciation. Since then, taxpayers have had to capitalize and amortize these expenditures over five years. Also, since 2022 taxpayers have been required to use the less favorable earnings before interest and taxes for the Code Section 163(j) limitation on the deduction for business interest expense. And 100% bonus depreciation began decreasing at the end of 2022, and is currently at a 40% rate for 2025.
Each of the “Big Three” would have been extended by the Tax Relief for American Families and Workers Act of 2024, which provided for retroactive extension through 2025. The bill passed the House on a bipartisan vote in January 2024, but was bogged down in the Senate.
The fact that President Trump indicated his support for 100% bonus depreciation by referring to his inauguration date of Jan. 20, 2025, in his recent joint address to Congress is an indication that the provisions will be drafted to apply retroactively, but is at odds with the general practice of tax bills applying to tax years “beginning after December 31,” or “beginning before January 1.”
The Treasury Department named a pair of Internal Revenue Service agents as special advisors to Treasury Secretary Scott Bessent and plans key roles for them in reforming the IRS after they complained of mistreatment under the Biden administration while investigating Hunter Biden’s taxes.
Gary Shapley and Joseph Ziegler, who were both special agents with the IRS’s Criminal Investigation division,
The two whistleblowers had
“As I noted in my letter to Secretary Bessent last month, if we reinstate whistleblowers who have been retaliated against, it will send a clear signal that pointing out wrongdoing is an honorable thing to do,” Grassley said in a statement Tuesday. “It will help change the culture of our bureaucracy. I’m very grateful to Secretary Bessent for supporting Gary and Joe, and I have no doubt they will be a boon to the Treasury Department in their new roles. Gary Shapley and Joe Ziegler put their entire careers on the line to stand up for the truth, and instead of being thanked, the Biden administration treated them like skunks at a picnic. Far too many whistleblowers share a similar experience of retaliation. I hope today is the first of many redemption stories for whistleblowers who’ve been mistreated. By taking a stand for whistleblowers, President Trump and his cabinet are ushering in a new era of transparency and accountability.”
Bessent hailed their promotion to positions of influence in the Trump administration. “I am pleased to welcome Gary Shapley and Joseph Ziegler to the Treasury Department, where they will help us drive much-needed cultural reform within the IRS,” Bessent said in a statement. “These veteran civil servants join us to help further the agency’s focus on collections, modernization, and customer service, so we can deliver a more effective and efficient IRS experience for hardworking American taxpayers. I appreciate Senator Grassley’s efforts in Congress to support whistleblower protections in order to improve transparency, accountability and root out the culture of retaliation.”
Shapley and Ziegler are expected to transition to senior IRS leadership after their stint at the Treasury Department, according to the
“We are enormously grateful to Secretary Bessent, Senator Grassley, and all of the members of Congress for their leadership and trust,” Shapley and Ziegler said in a joint statement. “We have been motivated by one singular mantra: do what’s right, and do it the right way. It has not been easy, but having a clear conscience is worth the effort. We appreciate the opportunity Secretary Bessent is giving us to put our experience and firsthand knowledge to good use for the American people to eliminate waste and reform the IRS.”
Turkey’s Treasury and Finance Ministry is using artificial intelligence to track down money earned by psychics and fortune tellers as part of a broader drive to combat the informal economy and boost tax revenue.
The ministry has turned its attention to the rapid growth of online services such as astrology, spiritualism, star charting, magic, meditation and numerology — many of which operate without clear regulation.
According to state-run Anadolu Agency, AI technologies have been engaged to track digital footprints across multiple platforms, including social media, online payment systems and messaging services such as WhatsApp and Telegram.
The initiative builds on Finance Minister Mehmet Simsek’s wider
Although earlier efforts to rein in government spending yielded limited results, Simsek’s operation has increasingly focused on revenue generation through measures such as taxing multinational corporations,
An investigation flagged 1,034 individuals as “high risk” and uncovered 1.8 billion liras ($50 million) in undeclared income between 2021 and 2023, Anadolu reported. In addition, 295 individuals were found to be operating without the requisite taxpayer registration.
In a statement on X, Simsek
The Public Company Accounting Oversight Board today appointed members of its two advisory groups: the Investor Advisory Group and the Standards and Emerging Issues Group.
The IAG was established by the PCAOB to provide investors’ perspectives on the Board’s agenda. The SEIAG was also established by the PCAOB to advise on existing standards, proposed standards, potential new standards and some emerging issues. Members are appointed for two-year terms.
“Advisory groups bring insightful and valuable feedback to the PCAOB to support our investor-protection mission,” PCAOB chair Erica Williams said in a statement. “We thank all IAG and SEIAG members for their willingness to serve and for sharing their valuable time and perspectives with us.”
IAG appointments
Terms expiring Dec. 31, 2026:
- Steven Grey
- Satyam Khanna
- Steven Lipiner (He was appointed to the IAG for a one-year term to replace a member who stepped aside prior to the completion of their two-year term, and his term will expire Dec. 31, 2025.)
- Jeffrey Mahoney
- Amy Copeland McGarrity
- Sandra Peters
- Nemit Shroff
- Gary G. Walsh
Continuing members
Terms expiring Dec. 31, 2025:
- James Andrus
- Mary M. Bersot
- Jonathan Grabel
- Ken Goldman
- Tracy Sophia Harris
- Paul O’Brien
- Sanford Rich
- Gina Sanchez
SEIG appointments
Terms expiring Dec. 31, 2026:
- Preeti Choudhary
- Brian Croteau
- James Freis, Jr.
- Robert Hirth, Jr.
- Steven Lipiner (He was appointed to the SEIAG for a one-year term to replace a member who stepped aside prior to the completion of their two-year term, and his term will expire Dec. 31, 2025.)
- Jeffrey Mahoney
- Jamila Abston Mayfield
- Sandra Peters
- Laura Phillips
- Stephen Rivera
- Kurt Schacht
- G. Alan Skinner
- John White
Continuing members:
Terms expiring Dec. 31, 2025:
- Christine Davine
- David Fabricant
- Colleen Theresa Honigsberg
- James Hunt
- Jennifer R. Joe
- Carole McNees
- Steven Morrison
- Dane Mott
- Christian James Peo
- Shivaram Rajgopal
- Kecia Williams Smith
More information on the
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