As detailed in the 2025-2026 Priority Guidance Plan (PGP), the Department of the Treasury and the Internal Revenue Service (IRS) are focused on implementation of the One Big Beautiful Bill Act (OBBBA). This week, we take a closer look at where things stand on OBBBA-related guidance.

The PGP lists 40 separate OBBBA-related guidance projects. Of those, several have already seen early releases, including the proposed qualified tip deduction guidance proposed regulations (the focus of an IRS hearing on October 23), guidance regarding section 174 research and development (R&D) amortization, the "beginning of construction" guidance with respect to wind and solar credits, and the new domestic automobile loan interest deduction.

We expect a slew of guidance on time-sensitive international tax provisions before the end of the year, including guidance under: 

• Section 250 regarding the exclusion of sales of intangible or depreciable property from foreign-derived deduction eligible income
• Section 898(c) regarding taxable years of specified foreign corporations (i.e., the repeal of the 11-month rule for Controlled Foreign Corporations (CFCs))
• Section 951 regarding the determination of a U.S. shareholder's pro rata share of a CFC’s subpart F income and net CFC tested income
• Section 960(d) regarding the deemed paid credit for taxes attributable to net CFC tested income

In addition, we expect Treasury and the IRS to prioritize guidance on other time-sensitive provisions and President Trump's priorities such as the deduction for qualified overtime compensation, the new deduction for seniors, and the new Trump savings accounts.

Of course, questions remain on the ability of Treasury and the IRS to issue OBBBA-related guidance and advance other regulatory priorities amid the government shutdown. As the IRS detailed in an October 21 statement, IRS operations have been significantly scaled back under the current lapse in appropriations. At least in the short-term, it appears the government is maintaining its capacity to issue expeditious guidance on time-sensitive provisions of the OBBBA. Kenneth Kies, the Assistant Secretary for Tax Policy and Acting IRS Chief Counsel, stated publicly last week that the government shutdown – and the significant IRS furloughs, in particular – will not impact the timing of OBBBA-related guidance. 

The broader goal of ensuring the implementation of OBBBA provisions that provide tax relief to businesses and individuals appears paramount as the Trump administration prepares for the 2026 mid-term elections and fights to avoid a repeat of the 2018 mid-terms, when Republicans lost control of the House in a "Blue Wave" election. #TaxTake

Upcoming Speaking Engagements and Events

Today, Mike will preside over the afternoon sessions at the 60th Annual Southern Federal Tax Institute, of which fellow Tax Member George Hani is Program Chair. Tomorrow, Marc will present "Implementing the HITS Act - What Comes Next?" to the American Association of Independent Music (A2IM), and on October 30, Mike and fellow Tax Member Lisandra Ortiz will speak at the 2025 Procopio International Tax Institute.   

In the News

Marc was named a 2025 Top Lobbyist by the National Institute for Lobbying & Ethics (NILE). Out of nearly 50,000 registered lobbyists at the state and federal levels, Marc is one of just 100 individuals recognized this year – an achievement that shows his continued influence and dedication to elevating the profession.

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.