Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Interim Guidance Simplifying Application of the Corporate Alternative Minimum Tax to Partnerships.
Summary
This joint resolution aims to disapprove the IRS rule (IRS Notice 2025-28) concerning interim guidance simplifying the application of the Corporate Alternative Minimum Tax (CAMT) to partnerships. The resolution utilizes the Congressional Review Act, chapter 8 of title 5, United States Code, to nullify the IRS rule. If passed, the rule would have no force or effect.
Expected Effects
The primary effect of this resolution, if enacted, would be to prevent the implementation of the IRS's interim guidance on the CAMT for partnerships. This means the existing, potentially more complex, rules would remain in place. Businesses and partnerships would continue operating under the prior regulations.
Potential Benefits
- Potentially avoids unintended consequences of the interim guidance.
- Allows Congress to have oversight on tax regulations.
- May ensure a more thorough and deliberate approach to tax policy.
- Could prevent confusion or instability caused by frequent changes in tax rules.
- May protect certain industries or businesses that benefit from the existing regulations.
Potential Disadvantages
- May complicate tax compliance for partnerships.
- Could lead to increased costs for businesses due to the complexity of the existing rules.
- May delay or prevent simplification of the tax code.
- Potentially creates uncertainty if the existing rules are unclear or outdated.
- Could hinder economic activity if the CAMT is applied inefficiently to partnerships.
Constitutional Alignment
This resolution aligns with Article I, Section 1 of the US Constitution, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is brought, is a mechanism for Congress to check the power of the executive branch in implementing regulations. It allows Congress to review and disapprove regulations issued by federal agencies, ensuring that these regulations are consistent with congressional intent.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).