May 30, 2025 was the official due date for stakeholders to recommend items to be included in the 2025-2026 Priority Guidance Plan (PGP). The PGP identifies on an annual basis the guidance projects (regulations, revenue rulings, revenue procedures, notices, and other guidance) that Treasury and the IRS intend to prioritize and actively work on during the published guidance plan year (July 1 through June 30). Unlike prior years' PGPs, the 2025-2026 PGP is expected to include priorities as to guidance that may be repealed or withdrawn in accordance with Executive Order (E.O.) 14219 (Ensuring Lawful Governance and Implementing the President's "DOGE" Deregulatory Initiative).  

On April 4, 2025, Treasury and the IRS issued Notice 2025-19, which invites taxpayers to submit recommendations for inclusion the PGP. Notice 2025-19 sets forth criteria that Treasury and the IRS consider in reviewing recommendations and selecting projects for inclusion on the 2025-2026 PGP. In alignment with the Trump administration's deregulatory efforts, Notice 2025-19 includes as new criteria the indicia of an "unlawful" regulation or a regulation that "undermine[s] the national interest," as described in E.O. 14219. More specifically, Notice 2025-19 asks for guidance recommendations that relate to "regulations" described in Section 2(a) of E.O. 14219, including regulations that are based on anything but the best reading of the relevant statutory authority. For this purpose and by cross reference to E.O. 13422, "regulation" is broadly defined to include any "guidance document" that sets forth "an agency statement of general applicability and future effect." The opportunity to prioritize the withdrawal or revocation of a broad range of guidance documents that stakeholders believe may be inconsistent with the Supreme Court's "best reading" test for regulatory validity under Loper Bright drove broad interest in responding to Notice 2025-19. 

As of publishing, 88 submissions have been made proposing recommendations to the 2025-2026 PGP. The submissions address a broad array of topics ranging from employee benefits to green energy credits to the corporate alternative minimum tax (CAMT) and cross-border provisions. Specific requests that appear in multiple submissions include requests for: 

1. The repeal of the dual consolidated loss/disregarded payment loss rules under section 1503
2. The withdrawal of the funding rule for purposes of the stock buyback excise tax under section 4501
3. Modifications to the proposed regulations issued to implement the CAMT, such as changes to the foreign tax credit (FTC) and reporting rules
4. The withdrawal of Revenue Ruling 2024-14, which applies the codified economic substance doctrine in section 7701(o) to certain so-called related party partnership basis shifting transactions 

Noteworthy in the responses are a number of requests seeking the withdrawal of a broad range of existing regulations and other guidance, triggering a material increase in the response rate to the annual PGP solicitation notice. The number of submissions in response to Notice 2025-19 reflects an increase of more than 30 percent relative to the submissions making recommendations for inclusion in the 2024-2025 PGP. 

We expect that Treasury and the IRS will release the 2025-2026 PGP in the late summer or early fall. Until then, we will be watching for the next tranche of guidance identified for rescission or withdrawal by Treasury. See our previous coverage of Treasury's and the IRS's implementation of the administration's deregulatory efforts here.

For more information, please contact:

Michael J. Desmond, mdesmond@milchev.com, 202-626-1575

Samuel A. Lapin, slapin@milchev.com, 202-626-5807

Caroline R. Reaves, creaves@milchev.com, 202-626-5939

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