As anticipated, the federal government shut down as Republicans and Democrats continue to hash out an agreement on fiscal year 2026 government spending. If there's a silver lining to this, it's that the Department of the Treasury and the Internal Revenue Service (IRS) released a slew of guidance the evening before the October 1 shutdown.

As administration officials signaled, the Priority Guidance Plan (PGP) was substantially revised in terms of form and content. The number of listed guidance projects was cut by more than half (from 231 to 105), with many long-term "legacy" projects eliminated. Instead, the focus is on six categories: 

1. One Big Beautiful Bill Act (OBBBA) implementation, including the recently released proposed regulations on the new qualified tip deduction
2. Deregulation and burden reduction, including several Biden-era Treasury priorities
3. Section 501(c)(3) issues
4. Tribal tax issues
5. Digital assets
6. SECURE 2.0 Act and other retirement guidance

As for substantive guidance, Treasury and the IRS addressed the corporate alternative minimum tax (CAMT) project listed on the PGP by releasing two more notices in its continuing series of guidance (see Notice 2025-27 and Notice 2025-28) addressing taxpayer concerns. Notice 2025-46 provides interim guidance regarding the application of the CAMT to domestic corporate transactions, financially troubled companies, and tax consolidated groups. Notice 2025-49 provides interim guidance regarding the application of the CAMT in a variety of contexts, including adjustments to adjusted financial statement income (AFSI) for certain items measured at fair value for financial statement purposes (i.e., mark to market). Both notices state that Treasury and the IRS intend to partially withdraw the proposed CAMT regulations and issue revised proposed regulations that will include rules similar to the guidance therein, and both permit taxpayer reliance under certain conditions. Notice 2025-49 specifically requests comments, which are due by November 30.

The government shutdown only adds to the pessimism regarding the prospects for a second tax bill this year. Releasing the PGP and opening the spigot of administrative guidance suggests that tax policy developments will be coming from Treasury and the IRS, at least in the short term. #TaxTake