Key Takeaways
- House to vote today to end government shutdown.
- Tariff talks continue; Supreme Court review still ongoing.
- Trump proposes $2,000 tariff dividend.
- Revenue Proc. regarding the staking of digital assets.
- IRS furloughs effects on staff.
- 2025 fiscal deficit released.
- National Get Outdoors Week!
House to Vote on Shutdown Today
House set to end historic shutdown as Republicans claim victory - Emily Brooks and Mike Lillis, The Hill:
The House returns Wednesday to vote on a spending package to end the longest government shutdown in U.S. history — an outcome widely viewed as a Republican victory over Democrats, who are now battling internally over how their firm stand on health care dissolved without a resolution.
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Johnson hopes to clear the bill through the lower chamber Wednesday evening, two days after it squeaked through the Senate with just enough votes to defeat a Democratic filibuster. President Trump has said he’ll sign the proposal when it reaches his desk.
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Johnson hopes to clear the bill through the lower chamber Wednesday evening, two days after it squeaked through the Senate with just enough votes to defeat a Democratic filibuster. President Trump has said he’ll sign the proposal when it reaches his desk.
Capitol agenda: How the shutdown’s last day should go - Mia McCarthy, Politico:
Democrats are planning to cast a procedural vote on the rule as an opportunity to extend Affordable Care Act subsidies, two people with knowledge of the plans tell Meredith Lee Hill. But Republicans will block it, and there are no other plans right now to delay a final vote.
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And even after the government is open, the pressure is already on to avoid another shutdown. The new stopgap funding plan punts the next deadline to Jan. 30 — meaning appropriators will have to get to work almost immediately to avoid another shutdown cliff in just two months.
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And even after the government is open, the pressure is already on to avoid another shutdown. The new stopgap funding plan punts the next deadline to Jan. 30 — meaning appropriators will have to get to work almost immediately to avoid another shutdown cliff in just two months.
House returns to vote on ending the government shutdown after nearly 2 months away - Curtis Yee and Michael Warren, AP News:
Yet even as the possibility of an end to the shutdown draws near, almost no one will be satisfied. Democrats didn’t get the health insurance provisions they demanded added to the spending deal. And Republicans, who control the levers of power in Washington, didn’t escape blame, according to polls and some state and local elections that went poorly for them.
House GOP moderates' Obamacare moment - Laura Weiss, Andrew Desiderio, and John Bresnahan, Punchbowl News:
Moderate House Republicans seeking an extension of the boosted Obamacare subsidies are stepping into a high-stakes political moment.
In the wake of a record-breaking government shutdown, these House GOP lawmakers will need to plot a way over the next few weeks to overcome their conference’s widespread distaste for the enhanced premium tax credits. Speaker Mike Johnson has made it clear he can’t guarantee a bill extending the subsidies makes it to the floor, even if the Senate is able to pass legislation.
In the wake of a record-breaking government shutdown, these House GOP lawmakers will need to plot a way over the next few weeks to overcome their conference’s widespread distaste for the enhanced premium tax credits. Speaker Mike Johnson has made it clear he can’t guarantee a bill extending the subsidies makes it to the floor, even if the Senate is able to pass legislation.
Tariffs Continue Despite Pending Supreme Court Decision
Tariffs are on trial, but US trade talks are moving full steam ahead - Ari Hawkins, Daniel Desrochers, and Phelim Kine, Politico:
The White House is plowing ahead with negotiations on tariffs, despite the fact the Supreme Court may soon strike down a large chunk of them. And foreign trading partners are still playing ball.
According to more than half a dozen foreign diplomats and people close to the negotiations, some of whom were granted anonymity to discuss strategy, other governments continue to press for deals to avoid President Donald Trump’s tariffs on sectors like autos and steel and others (as well as threatened ones on pharmaceuticals and semiconductors), which are not affected by the court challenge. And they are betting the administration will be able to use other laws to reimpose at least some of the duties that could be struck down.
According to more than half a dozen foreign diplomats and people close to the negotiations, some of whom were granted anonymity to discuss strategy, other governments continue to press for deals to avoid President Donald Trump’s tariffs on sectors like autos and steel and others (as well as threatened ones on pharmaceuticals and semiconductors), which are not affected by the court challenge. And they are betting the administration will be able to use other laws to reimpose at least some of the duties that could be struck down.
What to know about Trump’s plan to give Americans a $2,000 tariff dividend - Paul Wiseman, AP News:
The tariffs are bringing in so much money, the president posted, that “a dividend of at least $2000 a person (not including high income people!) will be paid to everyone.’’
Budget experts scoffed at the idea, which conjured memories of the Trump administration’s short-lived plan for DOGE dividend checks financed by billionaire Elon Musk’s federal budget cuts.
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The tariffs are certainly raising money — $195 billion in the budget year that ended Sept. 30, up 153% from $77 billion in fiscal 2024. But they still account for less than 4% of federal revenue and have done little to dent the federal budget deficit — a staggering $1.8 trillion in fiscal 2025.
Budget experts scoffed at the idea, which conjured memories of the Trump administration’s short-lived plan for DOGE dividend checks financed by billionaire Elon Musk’s federal budget cuts.
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The tariffs are certainly raising money — $195 billion in the budget year that ended Sept. 30, up 153% from $77 billion in fiscal 2024. But they still account for less than 4% of federal revenue and have done little to dent the federal budget deficit — a staggering $1.8 trillion in fiscal 2025.
Staking of Digital Assets
Ensuring Investment Trust Status for Digital Asset Staking Entities - Ed Zollars, Current Federal Tax Developments:
The Internal Revenue Service (IRS) and the Department of the Treasury have issued Rev. Proc. 2025-31 to provide a safe harbor for trusts seeking to engage in the staking of digital assets while maintaining their favorable classification as investment trusts under § 301.7701-4(c) and as grantor trusts for Federal income tax purposes. This procedure addresses the critical question of whether staking activities constitute a "business" enterprise or grant the trust a prohibited "power to vary the investment," either of which could lead to reclassification as an association taxable as a corporation.
IRS Guidance Enables Trusts to Stake Digital Assets - Kristen Parillo, Tax Notes ($):
The new guidance gives “crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors,” Treasury Secretary Scott Bessent said in a November 10 post on the social media platform X.
Bessent, who is also acting IRS commissioner, added that “this move increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology.”
Bessent, who is also acting IRS commissioner, added that “this move increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology.”
IRS Furloughs
IRS Staff Grapple With Furlough Threats During Shutdown - Benjamin Valdez, Tax Notes ($):
Carpenter, who works in the Small Business/Self-Employed Division, said the lengthy shutdown clashes with the Taxpayer Bill of Rights. The IRS has implemented deep furloughs in the enforcement arena, including a reduction of about 67 percent of SB/SE personnel.
“Your federal investigations are falling behind, they’re sitting on hold,” Carpenter said. “For the American taxpayers, it’s not fair . . . the TBOR says you have the right to have your tax matter handled in a timely manner.”
Should the Senate’s proposal cross the finish line, the IRS will be funded through January 30, 2026. A deal struck this week would allow the agency more resources to prepare for the 2026 filing season and the implementation of the One Big Beautiful Bill Act (P.L. 119-21).
“Your federal investigations are falling behind, they’re sitting on hold,” Carpenter said. “For the American taxpayers, it’s not fair . . . the TBOR says you have the right to have your tax matter handled in a timely manner.”
Should the Senate’s proposal cross the finish line, the IRS will be funded through January 30, 2026. A deal struck this week would allow the agency more resources to prepare for the 2026 filing season and the implementation of the One Big Beautiful Bill Act (P.L. 119-21).
Blogs & Bits
Understanding The Important Role Of The Committee On National Statistics In Ensuring High-Quality Federal Statistics - Barry Johnson, Tax Policy Center:
But as the National Academies have recently lost $40 million in federal contract funding, they have begun consolidating and reducing staff. Reporting indicates that up to one-fifth of the roughly 60 top-level advisory boards that produce much of the National Academies’ output may be eliminated.
Eliminating CNSTAT would remove a key contributor to the quality of federal statistics. Its independent evaluations, methods guidance, standards, and cross-agency problem-solving are essential to credible government policy development, including tax analyses, as well as business and household decision-making.
Eliminating CNSTAT would remove a key contributor to the quality of federal statistics. Its independent evaluations, methods guidance, standards, and cross-agency problem-solving are essential to credible government policy development, including tax analyses, as well as business and household decision-making.
It’s 2026 tax bracket time - Kay Bell, Don't Mess With Taxes:
One move, where applicable, is to postpone some of this year’s expected income if it will keep you in a lower tax bracket this year. And when you receive the delayed compensation in 2026, the new wider tax bracket will accommodate the added earnings.
Another option if you find you will be in a higher tax bracket next year is to convert traditional IRA money to a Roth IRA now. Then the tax you owe will be taxed at your lower rate.
Another option if you find you will be in a higher tax bracket next year is to convert traditional IRA money to a Roth IRA now. Then the tax you owe will be taxed at your lower rate.
How AI Will Reshape Employment Taxes And Public Revenues - Amanda Tickel and Hayley McKelvey, Forbes:
For governments, the challenge will be adjusting tax systems to address this change. How will governments raise the revenue they previously raised from employment taxes? How will they pursue the policy objectives which used to be pursued by employment taxes? How will resulting evolution in employment tax impact economic growth?
For businesses, the challenge will be to track developments and develop a flexible response to changes in the tax base. All this, safe in the knowledge that, the revenue that used to be extracted from the productive process though employment taxes will, inevitably, need to be extracted from elsewhere.
For businesses, the challenge will be to track developments and develop a flexible response to changes in the tax base. All this, safe in the knowledge that, the revenue that used to be extracted from the productive process though employment taxes will, inevitably, need to be extracted from elsewhere.
8 Ways To Reduce Taxable Income In 2025 - Kristin McKenna, Forbes:
Consider if you: are a business owner or have a side hustle.
One of the best ways to lower taxable income is with a retirement plan. If you don't already have a retirement plan, there may still be time to set one up, but you'll need to act fast. Deadlines for plan establishment and funding will depend on how your business is structured, so consult your tax advisor as soon as possible.
The 2025 total funding limit (including employee and employer funding sources) for SEP IRAs, Solo or traditional 401(k)s is $70,000. In 401(k) plans, individuals age 50+ can make an extra $7,500 pre-tax catch-up contribution (moving to Roth in 2026 for high earners).
One of the best ways to lower taxable income is with a retirement plan. If you don't already have a retirement plan, there may still be time to set one up, but you'll need to act fast. Deadlines for plan establishment and funding will depend on how your business is structured, so consult your tax advisor as soon as possible.
The 2025 total funding limit (including employee and employer funding sources) for SEP IRAs, Solo or traditional 401(k)s is $70,000. In 401(k) plans, individuals age 50+ can make an extra $7,500 pre-tax catch-up contribution (moving to Roth in 2026 for high earners).
Fiscal 2025 Deficit Was $1.8 Trillion, CBO Says - Tax Analysts, Tax Notes ($):
The federal budget deficit for fiscal 2025 was $1.8 trillion, a decrease of $41 billion — or 2 percent — from the previous year, while revenues rose $317 billion — or 6 percent — and outlays increased $275 billion — or 4 percent — compared with 2024 totals, the Congressional Budget Office said in a November 10 report.
Tax Trouble
Ex-Russian Gas Exec Seeks Release After Tax Sentence Axed - Anna Scott Farrell, Law 360 Tax Authority ($) (defendant name omitted):
A former Russian gas company executive convicted of hiding more than $100 million from the IRS asked a Florida federal court to release him from prison now that his sentence has been vacated on appeal, while the U.S. urged the court to deliver the same seven-year term.
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Defendant, a certified public accountant, still schemed for decades to hide millions in assets from the Internal Revenue Service by failing to disclose offshore accounts and then lied to the agency while seeking amnesty in 2015 through the Offshore Voluntary Disclosure Program, the U.S. said. The Eleventh Circuit upheld his convictions for those violations.
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Defendant, a certified public accountant, still schemed for decades to hide millions in assets from the Internal Revenue Service by failing to disclose offshore accounts and then lied to the agency while seeking amnesty in 2015 through the Offshore Voluntary Disclosure Program, the U.S. said. The Eleventh Circuit upheld his convictions for those violations.
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